IVCM, the re-branded international pensions fund business formerly known as Brooklands, is reopening a New Zealand recognised overseas pension scheme, which was closed to new members in December 2014.
The former Brooklands scheme, known as the New Zealand PIE Superannuation Fund, had been closed in the wake of new legislation in New Zealand at the time, and “lower-than-expected client numbers, mostly attributed to under performance of the absolute return strategies within the fund at the time”, IVCM said in a statement.
The newly-reopened ROPS will include funds managed by Emirates NBD Asset Management and Vanguard Investments Australia, IVCM said.
IVCM group chief executive Paul Evans said the relaunched ROPS, with the addition of funds from Emirates NBD and Vanguard Australia, would provide clients with investments that offer “a greater range and pedigree” than was previously possible. Australian dollar investment options are also available, to cater for Australian investors, Evans added.
Portfolio Investment Entity
In New Zealand the scheme is classified as a “portfolio investment entity” (PIE), which means that if the client is resident in New Zealand, tax is paid at their elected “prescribed investor rate” (PIR) to a maximum of 28%, IVCM said, while non-New Zealand resident clients pay no tax.
Because benefits paid out of a New Zealand ROPS are free of tax in that country, it isn’t reliant on double tax treaties with other countries to be attractive to non-resident clients, IVCM said.
IVCM is the Promoter and trustee of the IVCM (NZ) PIE Superannuation Fund. The Dubai-based company markets IVCM concentrate on international pension provision and offer a multi-jurisdictional QROPS solution with a range of market-leading international retirement planning solutions in Gibraltar, Australia, New Zealand and the UK.
Earlier this month, IVCM announced that an Australian ROP scheme it is currently associated with was “back on the HMRC QROPS list”, after having been removed by the UK tax authority last year, in the wake of new rules designed to ensure that individuals aren’t able to take their UK pensions before the age of 55.
Brooklands Trustees in administration
As reported, Brooklands Trustees, a UK-regulated company with offices in London, which marketed pension products to UK residents and expats under the Brooklands name, went into administration last month, and transferred oversight for its pensions to other entities.
According to an informational document sent to industry contacts at that time, a copy of which was seen by International Investment, UK-based Heritage Pensions Ltd was appointed “the new operator of the Brooklands SIPP” (self invested personal pension)”, and IVCM Heritage Trustees Ltd was named the new trustee of the Brooklands SIPP.
At that time, Evans explained that Brooklands has been caught up in a Financial Ombudsman Service matter which involved a client who lost money in an unauthorised Australian property fund that had been held in his Brooklands SIPP.
For this reason, Brooklands Trustees had sold the responsibility to manage and run the Brooklands SIPP in the UK, while IVCM – as the overseas-focused arm of Brooklands was renamed in 2015 – would “continue to provide administration services to the SIPP”, at the same time remaining “the main point of contact for advisers and clients”.