New Zealand firm launches QROPS bridge product for Oz market
A new dual-registered New Zealand and Australian Qualifying Recognised Overseas Pension Scheme (QROPS) scheme has been launched.
New Zealand investment company Lifetime Asset Management has added the Garrison Bridge Superannuation Scheme to its range with the product receiving its Recognised Overseas Pension Scheme (ROPS) registration last week.
It is a licensed superannuation scheme with the Financial Markets Authority in New Zealand and also meets the requirements of the Australian Securities and Investment Commission, as outlined in the New Zealand Markets Authority mutual recognition guidelines.
Despite many providers moving away from the controversial superannuation schemes following the many changes that have occurred since QROPS (now known as ROPS) was launched 2006, particularly the reduction to the ROPS list in 2015, Ralph Stewart, chief executive of Lifetime Asset Management, said that he still believes that there is a market for such products in the region for New Zealand and Australian migrants.
Stewart has more than thirty years’ experience in New Zealand financial services, including as chief executive of AXA New Zealand and the Accident Compensation Corporation.
He said: “The Garrison Bridge scheme is a multi-currency offer, combining international index funds and simple fees with a tax effective structure. We think the removal of the 70% income for life requirement, as indicated in the UK Autumn policy statement, provides increased certainty for New Zealand based superannuation schemes and removes confusion for investors.
“New Zealand is well placed as a financial hub for new migrants with forty double taxation agreements currently in force and close connections with Australia including the Trans-Tasman Mutual Recognition Arrangement.
Stewart added that the New Zealand regulatory environment has “strengthened over the last two years”, with the introduction of the Financial Markets Conduct Act 2013 (Act). This Act requires all managed investment schemes to be licensed from 1 December 2016 and to meet new issuing and disclosure requirements.