FNB International Wealth Management - QROPS

Frequently Asked Questions

Who is eligible?

The Scheme is open to anybody whether resident of Guernsey or not. The Scheme will be particularly attractive for individuals who are not resident in the UK and do not intend to return. Other nationals who have worked in the UK and have accumulated a UK pension scheme can also benefit.

What assets can be transferred to a QROPS?

Most UK pension schemes other than the State pension can be transferred to a QROPS. It is generally not possible to transfer a final salary/defined benefit scheme once the pension is in payment. It is also not usually possible to transfer a pension annuity once in payment.

Can more than one pension be transferred to a QROPS?

There is no limit on how many pension transfers a QROPS may receive provided they relate to the same member.

Is there a minimum transfer value?

We generally suggest that the combined value of pensions transferred to the QROPS should exceed £30,000 for the scheme to viable.

What is the retirement date?

The retirement date can usually be any time between the individual's 55th and 75th birthday.

How much of the fund can I take as a lump sum?

At the member's nominated retirement date it is usually possible to take up to 30% of the value of the fund as a lump sum. The lump sum must precede the pension and is a one off payment. For members who have been non-UK resident for less than five years the maximum will be 25% of the fund transferred from the UK.

How is my pension calculated?

The basis for the pension calculation is the UK Government Actuaries Department (GAD ) rate applicable to the member's age and sex. Where a QROPS member has been non-UK resident for more than five years, the scheme Trustees have additional flexibility in setting the pension based on the member's individual circumstances. In all cases, the maximum pension level will be reviewed at least every three years.

How will my pension be taxed?

The fund will normally grow free of any income or capital gains tax. When benefits are drawn, the pension will be paid without the deduction of any Guernsey income tax (excluding Guernsey residents). Death benefits will also be paid to beneficiaries without the deduction of any Inheritance Tax or Estate Duty. However, it is possible that the payments could create a tax liability the member's country of residence and appropriate advice should be sought before any benefits are taken.

What are the reporting requirements?

Any distributions made to a member for the first five years after becoming non UK resident must be reported to HMRC.

What are the investment options?

The Directus QROPS offers access to Ashburton's excellent range of Multi Asset Funds and Equity Funds. Most of the funds offer a choice of investment currencies. Please select investment choice to access a full list and also to view the fund factsheets.

Can the QROPS invest outside of Ashburton Funds?

The Directus QROPS offers access to only Ashburton Funds. However, FNB International Trustees has other QROPS plans and details can be found on the QROPS Fees & Options Sheet in the Documentation section of this website.

Where is the scheme based?

The Directus QROPS is a Master Trust based pension and is domiciled in Guernsey and provided by FNB International Trustees Limited which is regulated by the Guernsey Financial Services Commission (GFSC).

What are the costs?

The Directus QROPS is one of the most competitively charged QROPS in the market place. The charges are detailed on the Fee Schedule in the Documentation section of this website.

Appointment of Advisers

You may nominate your own financial adviser. If you do not have one, we will be happy to introduce you to our sister company, FNB International Private Clients, a licensed financial adviser based in Jersey.

Independent Advice

FNBIT as administrator of the Directus QROPS is not authorised to provide any legal, tax or other advice in respect of the suitability of the Scheme for each individual member. Each individual member is strongly advised to obtain suitable advice prior to entering into or arranging any transfer to a QROPS.

What is the establishment process?

The first step will be to obtain a current transfer value from your UK scheme. You can either approach them directly, through your financial adviser, or we can obtain the transfer value on your behalf following completion of a simple authority letter.

Once you have details of the transfer value it is prudent to seek advice on the implications of transferring to a QROPS. Some UK schemes contain valuable guarantees that could be lost upon transfer. As mentioned above, if you do not already have a financial adviser we would be happy to introduce you to one.

Once you have made the decision to transfer, you will need to complete the Directus QROPS application form (a copy is available in the Documentation section of this website). Your UK pension scheme will also usually ask you to complete their transfer discharge forms.

Your financial adviser will then forward all of the documentation to us in Guernsey and we will liaise directly with your UK pension scheme administrator.

UK pension schemes typically take between two and ten weeks to make the payment to your QROPS following receipt of the completed documentation. Once the transfer payment has been received, we will notify the member/financial adviser and invest the monies as instructed on your QROPS application form.

You will be able to monitor the performance of your fund using Ashburton's online valuation facility.

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