Overseas pension provider DeVere has said it will act to change wording on a pension information website it is affiliated with for a second time, after FTAdviser and pension experts raised concerns it is misleading.
In July 2015, FTAdviser reported DeVere had suspended Qrops.net - an information site about qualified recognised overseas pensions (Qrops) - after FTAdviser told the group that pension specialists were warning the site contained inaccurate information.
The website was updated, but pension specialists' are red-flagging the site once again on the grounds some of the wording it uses is misleading.
FTAdviser contacted DeVere with the pension experts' concerns, and following this the website has been suspended for a second time.
Before the site was suspended, there was a page which referred to benefits in France, which also included a reference to Rops in Malta and the possible benefits.
Bethell Codrington, global head for international pensions at TMF Group, said: "Under the heading 'Qrops Malta - the benefits', the reference to a 25 per cent tax free lump sum is a misnomer. It may be tax free in Malta but it is not in France. There is also not mitigated income tax in France."
David Trenner, technical director at Intelligent Pensions, said he had a number of concerns about the home page of the site before it was suspended.
The first was a reference to a 25 per cent lump sum available via Qrops.
He said: "This applies to just about every other type of scheme; except for those occupational schemes where membership commenced before April 2006 which can sometimes provide protected tax free cash of more than 25 per cent."
In reference to a heading which stated 'no obligation to ever buy an annuity' Mr Trenner said this "applies equally to UK personal pensions including Sipps," not just recognised overseas pension schemes.
He said: "More significantly it is difficult to buy an annuity with Rops funds when it becomes advisable to do so, typically from age mid-seventies onwards when mortality cross subsidy becomes more valuable."
Mr Trenner was also concerned about a heading which stated 'Avoid further changes to UK tax and pensions legislation'.
He told FTAdviser this was not the case.
"Transfers to Rops in Singapore and Hong Kong were ruled to be unauthorised payments retrospectively. Rops have to report to HM Revenue & Customs for up to 10 years following a transfer."
A spokesperson for DeVere told FTAdviser that the overseas pension provider planned to take action on the information which was misleading on the site.
The spokesperson said: “Whilst this site is affiliated with us and with other companies we believe, it is not owned or operated by DeVere.
"However, we will urge the company responsible for its content to review it to ensure that all the information on this site is correct, unambiguous and up-to-date.”
FTAdviser contacted Qrops.net but did not receive a response before publication of this article.
ruth.gillbe@ft.com
