Sharechat Logo

FMA warns against misleading UK pension scheme transfers advertising

Thursday 18th December 2014

Text too small?

The Financial Markets Authority is warning against misleading advertising about transferring UK pension scheme entitlements to New Zealand to avoid incoming tax and legislation charges. 

The ads claim changes in UK legislation and New Zealand's tax treatment of offshore pensions, which come into effect in April 2015 may create either a loss of access to the pension fund or a lump tax charge to the incoming cash. New Zealand's financial services watchdog is concerned the sense of urgency will cause false alarm and has asked for some materials to be removed from publication, it said in a statement. 

“We are concerned that people are feeling press-ganged into transferring their pension scheme entitlements from the UK and being put under pressure to act now,” said Elaine Campbell, FMA’s Director of Compliance. “We are concerned that tax issues and a misleading sense of urgency are being exploited by some providers to scare people into transferring their money, without offering a balanced view of the potential pros and cons involved.”

One New Zealand based UK pension transfer adviser, who didn't want to be identified, told BusinessDesk the culprits of deceptive advertising were mainly British companies based in Spain and that although the regulator may have concerns, their business was telling people the changes. They said their business had not been contacted by the FMA. 

A spokesman for the FMA said a number of New Zealand based businesses had been contacted. He declined to name which companies had been contacted. 

The FMA notes that ‘old age’ state pensions provided by the UK government at retirement are not transferrable, so this warning does not apply to these pensions.

 

 

 

 

BusinessDesk.co.nz

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

NZ dollar withstands poor manufacturing data
Bublitz to serve home detention following appeal
Former G8 boss takes over management of Evolve
Precinct boosts earnings, withholds $34m from Fletcher
Sky TV shares rise on US$40m RugbyPass acquisition
Precinct boosts earnings, withholds $34m from Fletcher
Sky TV shares rise on US$40m RugbyPass acquisition
NZ manufacturing activity shrinks for first time in seven years
Orr defends RBNZ rate cut, says monetary policy looks ahead, not behind
Michael Hill underlying earnings fall 14% as margins squeezed

IRG See IRG research reports