Green light for post-FMCA ROPS, but demand down
British currency volatility is leading to a slowdown in interest in pension transfers to New Zealand, as the Government clears the way for providers to continue to operate under the Financial Markets Conduct Act.
Wednesday, November 2nd 2016, 5:59AM
The industry had been waiting for an FMCA amendment that would allow ROPS providers to align their schemes' requirements with the withdrawal rules of UK pension funds.
That has now been approved.
In Britain, financial advisers said they had experienced significant growth in people seeking advice on moving their pensions overseas, as a result of post-Brexit vote currency volatility.
The pound has fallen 18% against the US dollar since the referendum result was announced.
DeVere Group chief executive Nigel Green told media that made life hard for expat Brits who were living overseas off their British pension income.
His firm had seen an increase of 21% in people wanting to talk about moving their pensions offshore, and investing them in other currencies.
But in New Zealand, Luke McKenzie, of Move My Pension, said he had seen a fall in inquiries as a result of the British turbulence.
"There are less inquiries in New Zelaand because the GBP is now 30% less against the NZ dollar. Those that still have UK assets are waiting and hoping for the pound to recover," he said.
Alun Rees-Williams, of Britannia, said there was usually a decrease in transfers any time the pound was weak.
| « Advice may be missing as schemes wound up | LVR restrictions to be reviewed » |
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