Tens of thousands of Brits could be impacted by changes to pension legislation in Malta, the deVere Group has warned.
The new rules, to be rolled out by the Malta Financial Services Authority (MFSA) as of 1 July 2019, will affect the way in which pension trustees administer new scheme applications, as well as existing members.
According to deVere Group, around 30,000 UK pensions have already transferred into Malta-based Qualifying Recognised Overseas Pension Schemes (QROPS).
These new tougher regulations are designed to boost client protections. For instance, as well as having a licence, financial advisors must ensure this licence permits them to provide investment advice to members.
James Green, deVere divisional manager of Western Europe, commented: “The Malta Financial Services Authority has made significant changes to the Maltese pension regulations. Coming into effect on 1 July 2019, these changes will have a major impact on how advice and service is given to those with Malta-based QROPS.”
He advised retirees to ensure their financial adviser would be able to fulfil their obligations in line with the new rules, warning that not every company will be adequately prepared for the changes.