In this chapter of our Annual Insurance Review 2019, we look at the main developments in 2018 and expected issues in 2019 for offshore.
Key developments in 2018
Qualified recognised overseas pension schemes (QROPs) are likely to continue to attract claims. QROPs are in effect offshore self-invested personal pensions. The issues we are seeing with QROPs are not indifferent to those before Financial Ombudsman Service claims in the English courts, where issues have arisen due to investments made within QROPs that have turned out to be a scam or have since lost their value. QROPs providers have tended to conduct minimal to no due diligence on investments made within their QROPs products or the entities that have referred business (including whether or not advisers are authorised).
What to look out for in 2019
We anticipate that we will see further complaints and claims arising against QROPs providers. These can be particularly expensive when they involve a transfer from a UK final salary scheme.
Download our full Annual Insurance Review 2019 for more insights.