New Zealand-based Endeavour Fund Administration Ltd, which markets QROPS to financial advisers, has agreed a deal with London & Colonial to enable investors in its schemes to access the L&C Simple Investment SIPP.
According to Endeavour, the deal will enable advisers to transfer the benefits of New Zealand qualifying recognised overseas pension schemes to the UK more easily than was previously possible.
Endeavour business development manager Mark Hattersley said this would be well-suited for someone who transferred their pension to New Zealand on the assumption that they would live there – or elsewhere abroad – permanently, but later decided to return to live in the UK. If they were over the age of 55 and able to begin taking benefits, this Endeavour arrangement would be better-suited to them than some others, he noted.
Added David Milner, director of Britannia Financial Services, a New Zealand-based holding company which owns Endeavour as well as other businesses, some of which also manage QROP schemes: “We have recognised for a little while that our members’ personal circumstances change, perhaps through family illness or death, and even marital break-up, resulting in some UK migrants deciding to return to the UK.
“Some [of these returned migrants] have experienced problems in repatriating their pension savings back to the UK.
“[UK-based] L&C, though, are happy to accept savings from our superannuation schemes.
“In addition, those members of the NZ Endeavour Fund who are living elsewhere in the world may also take the decision to return to the UK, and the great advantage here for our members is that we can effect an in specie transfer of the TAM investments, reducing costs associated with repatriations and, indeed, on-going costs.”
Adam Wrench, head of product and business analyst at London & Colonial, said that as part of its agreement with Britannia, L&C had agreed to waived its upfront fee, together with all ongoing fees refunded by TAM, making the Simple Investment SIPP effectively ‘fee free’ to Britannia/Endeavour users.