RegulationSep 2 2015

New Zealand Qrops taking part in dispute process

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New Zealand Qrops taking part in dispute process

A New Zealand financial dispute resolution body has started looking into a complaint about a recognised overseas pension scheme affecting hundreds of UK expatriates.

According to campaign group Ark Class Action, 426 UK expatriates transferred their money into the Evergreen Retirement Trust in 2012, which Ark claimed has been performing badly.

It is understood Financial Services Complaints Limited – New Zealand’s equivalent of Fos – has been working with Evergreen Retirement Trust to resolve a dispute after concerns have been raised about poor performance and a five-year lock-in.

However, in a statement, Evergreen Retirement Trust said: “The suggestion that a member’s dispute represents an investigation taking place is not correct; FSCL is merely a means of resolving disputes.

“Any implication that the scheme is not being run in accordance with the scheme offering documents and all necessary regulation, or that it is somehow being investigated by regulatory authorities, is incorrect.”

In its most recent annual report, Evergreen said its absolute growth funds and income plus funds had performed below expectations.

The statement added: “In respect of the performance of the scheme, this is reported to members.”

Under New Zealand law all financial service providers must have an independent disputes resolution provider, of which FSCL is one.

Evergreen’s website said that in November 2012 Revenue & Customs suspended the scheme from its published Qrops list. It said discussions with HMRC were “ongoing” and that Evergreen continues to operate as a Qrops, meeting all its reporting obligations to HMRC.

Regulator view

Susan Taylor, chief executive of FSCL, said: “As all of our complaint investigations are confidential as between the parties to the complaint, I am not able to comment on any investigations we may be carrying out.”