Newly introduced UK regulations impose additional conditions on SMSFs that are registered, or will be registered as Qualifying Overseas Pension Scheme (QROPS). The new regulations broadly require that in order to be treated as, or continue to be treated as, a QROPS, the relevant SMSF’s deed must now contain provisions that prevents members from accessing benefits prior to age 55, unless they retire as a result of ill health under the UK laws.
These requirements are more restrictive than the conditions of release in the Superannuation Industry (Supervision) Regulations 1994. For example, benefits can be paid out of a super fund on the basis of compassionate grounds or hardship. This means that most SMSFs will need to amend their trust deeds in order to become, or continue to be a QROPS.
We have updated our standard SMSF deed to incorporate these provisions, satisfying the new UK regulations. If you would like to discuss the new requirements, or think you may need to update your SMSF deed, please contact: