Have an Malta-based Overseas Pension? Changes Being Made to Maltese Pension Regulations and What You Need to Know.
Malta has been a popular destination for UK pension pots including New Zealand and Australian residents who been advised to transfer there by advisors not registered to give advice in New Zealand and Australia. There are already an estimated 30,000 UK based pensions that have been transferred to Malta-based Qualifying Recognised Overseas Pension Schemes (QROPS).
The Malta Financial Services Authority (MFSA) published a newsletter in January confirming amendments to the country’s Retirement Pensions Act. The amendments bring in stringent new rules both for advisers and asset/investment restrictions. Following news of these regulatory changes, pensioners with their pensions in Malta-based overseas schemes are being urged to check whether their pension pots are at risk.
Maltese regulation is moving in line with New Zealand and Australian pension regulation, which allows only NZ or Australian licensed advisers to advise NZ or Australian residents. If you hold a Malta-based QROP you need to ensure that your adviser is suitably qualified and regulated to carry out their obligations on your behalf according to the new rules being introduced.
The amendments to the Pensions Act also includes investment restrictions and changes to what can be invested in. Investment Managers and Retirement Scheme Administrators must invest in assets that are in “best interest of the Members and Beneficiaries” and must “ensure that the assets of a Scheme are properly diversified in such a way as to avoid accumulations of risk in the portfolio as a whole”. It is understood that due to its previously vague and less stringent pension regulation, some Malta-based QROPS invest in some expensive and poor-quality assets. In the past there have also been cases involving conflicts of interest in transfer advice.
Going forward, it is predicted that many current advisers will not be able to meet some or all of the new requirements being introduced, which would no longer enable them to properly service clients. If you currently have your pension in a Malta-based QROPS you should check that your adviser can service your needs and that your investments are of good quality and have been performing appropriately. If you are resident in New Zealand or Australia and need assistance with your Malta-based QROPS, need a new locally regulated advisor to comply with the changing regulations, want a review of your investment, or just want to talk, then we can help you. It may also be worth considering getting your pension in a transparent and well-regulated jurisdiction.
New Zealand based Ranfurly Strategic offer a listed Superannuation Scheme, as well as an agent that can assist you through the transfer process, prepare transfer forms, and assist in obtaining the required UK and NZ advice that you need. The Ranfurly Scheme is listed on the UK Government Recognised Pension Schemes List.
With Ranfurly, be closer and in more control of your money and be assured knowing that your pension is backed by award-winning investment groups.
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