UK QROPS Changes Will Affect Jersey Pension Plans

The draft regulations on Qualifying Recognised Overseas Pension Schemes ("QROPS") (The Overseas Pension Schemes (Miscellaneous) Regulations 2015) (the "Draft Regulations")) published by HMRC on 19 December 2014 will have an impact on all Jersey pension schemes that have, or wish to achieve, QROPS status from a UK tax perspective and that are not managed by service providers in Jersey who are regulated. To this end Jersey pension schemes that have QROPS status, but fall outside of Jersey's regulated regime, should urgently seek advice as to the possible consequences of losing QROPS status and the options available in the circumstances. The Draft Regulations have no direct application in Jersey but they must be complied with by pension schemes on the Island wishing to maintain or acquire QROPS status for the reasons stated below.