Bourse Group Limited - QROPS Qualifying Recognised Overseas Pension Schemes

Qualifying Recognised Overseas Pension Schemes (“QROPS”)
In 2006, the UK government relaxed the requirements regarding pension transfers. For those leaving the UK permanently, this means that if you have a UK registered pension scheme you can now transfer it to a QROPS such as the Bourse Retirement Trusts Scheme.

Such a transfer itself does not change the basis of taxation or investment restrictions if you continue to remain resident in the UK or within five years of leaving.

However, if you have been living out of the UK for five complete tax years (the “Reporting Period”) and are not looking to return to the UK, you would then be able to benefit from the terms of the domestic provisions of the BRTS which, whilst limiting lump sum payments to 25% of the fund, does allow wider investment flexibility and other benefits which are likely to be more flexible than in your existing UK registered pension scheme.

If your country of residence requires certain further restrictions beyond that of the Guernsey Scheme, then these can be accommodated within the Scheme to enable compliance with your new home jurisdiction.

The Bourse Retirement Trusts Scheme (the “BRTS”)
The BRTS is registered in the UK with H.M. Revenue and Customs (“HMRC”) with registered number 501556. The BRTS is a Guernsey retirement annuity trust scheme and is open to both residents and non-residents of Guernsey. It is operated in accordance with the Laws of the Island of Guernsey.

Bourse Pension Trustees Limited (“Bourse”) is the trustee and administrator of the BRTS.

Features of the Guernsey Scheme

Transfers-in from other pension schemes The BRTS can accept transfers-in from your UK registered pension scheme.

Minimum pension transfer The minimum value of transfers accepted into the BRTS is ordinarily £250,000.

Currency The base reporting currency for the BRTS is GB Pounds Sterling, though you can choose any other currency. Once you have chosen a base reporting currency, you cannot alter it.

Permitted investments Whilst the Scheme itself allows a wider range of investments than are ordinarily available in most UK registered pension schemes, the range of investments permitted whilst subject to the QROPS reporting regime is as per your UK registered pension scheme.

Retirement date You can select any date on which to retire, depending on your circumstances, between your 50^th birthday up to your 75^th birthday.

Pension benefits On retirement, you can take pension benefits as a lump-sum (up to a maximum of 25%), as regular income, or as a combination of these.

Limitations in respect of UK transferred schemes within the Reporting Period
In respect of pension assets/benefits transferred in to the BRTS from a UK registered pension scheme, Bourse is required to comply with the HMRC authorised payment regime and reporting requirements. These reporting requirements cease once you have physically been out of the UK for five full tax years. The Reporting Period is counted from when you leave the UK, not when your pension is transferred.

This means that during the Reporting Period you will be subject to the full application of UK pension rules and in particular the Guernsey Scheme will remain subject to:

(i) the UK permitted investment regime (e.g. cash, collectives, commercial property, etc.); and

(ii) the prohibition on loans to you from the pension.

FURTHER PENSION CONSIDERATIONS AS TO APPLICABILITY

Loss of Protected Rights
Transfer into any QROPS may lead to loss of protected rights which may be contracted out rights or rights accrued under a defined benefit scheme.

Lifetime Allowance Charge
Unless you have enhanced or primary protection, if your transfer to a QROPS exceeds the relevant lifetime allowance, excess funds transferred will be subject to a 25% charge.

Return to the UK
On your return to the UK, UK pension legislation will apply to your pension assets within the Scheme.

PRACTICAL MATTERS

Seeking independent advice
Bourse cannot provide you with advice. As with any financial product/service, you should seek professional advice as to the suitability of each scheme in your particular circumstances. The tax consequences of a transfer will vary depending on whether you have enhanced and/or primary protection or neither. Bourse recommends that such advice you seek should cover both tax and pensions planning but cannot itself provide any such advice.

In respect of transfers to the Scheme, in the UK there is no requirement for an adviser to hold any special certification to advise on a SIPP transfer to the BRTS but they must hold a G60 to advise on any transfer from an occupational scheme (though in either case you could self select and have no professional recommendation).

Asset Security
Pension assets will be held in accounts specific to your pension. There is no co-mingling of investments or cash with other members and pension assets do not form part of any Bourse Group company assets.

You will receive a quarterly asset summary. This may be in addition to any valuations and reports received by you direct from your investment adviser.

How to apply
Applying to join the Scheme is straightforward and involves the completion of an application form which is designed to capture information about you and your existing pension arrangement(s). You may be asked to provide other information/documentation during the application process, including, for example, evidence of residency.

Charges
An establishment charge is payable on establishment and an annual administration charge is payable thereafter. Third party charges (for example, those of any appointed discretionary investment manager) may also apply.

Charges are detailed in the relevant ‘Schedule of Charges’ produced by Bourse.

Further information
If you require any further information about the BRTS or about other pension services provided by Bourse, please contact the Pensions Department at jonathan.carter@bourse.gg.

Alternatively, please telephone Bourse at 00 44 1481 706779 or write to: The Pensions Department, Bourse Pension Trustees Limited, P.O. Box 636, Havelet House, 181 South Esplanade, St. Peter Port, Guernsey GY1 3JS.

Although this information is believed to be accurate as at the date of publication (13.06.08), Bourse reserves the right to vary its content without notice at any time.