Guernsey is planning to introduce a code of conduct for providers of Qualified Recognised Overseas Pension Schemes (QROPS) based on the island.

A working party comprised of Guernsey-based QROPS providers is to be formed in the coming weeks with the aim of having a code of conduct in place later this year.

The introduction of the code is “all about QROPS providers in the island uniting together to drive best practice within the sector” and reflects the fact that the industry itself wants to ensure “everyone is singing from the same hymn sheet,” said Peter Niven, chief executive of Guernsey Finance.

Niven also lauded the pro-active stance being taken by the island’s QROPS industry as codes of conduct are typically imposed on sectors.

HM Revenue & Customs’ introduction of new regulations in 2006 means that those leaving the UK can transfer UK pensions into recognised foreign pension plans without tax deduction and can ultimately draw them without a UK tax liability.

A number of firms have recently reported an upsurge in interest in QROPS from UK expats and their advisors following the collapse in the Gaines-Cooper case in February. Robert Gaines-Cooper, a UK-born businessman, lost his bid to win a judicial review of a dispute with the UK tax authorities which had refused to accept he had really left the country when he moved to the Seychelles in 1976.

The case hinged on whether Gaines-Cooper had sufficiently severed his ties with the UK. HMRC currently makes assessments on a case-by-case basis and the case has highlighted ambiguity over which factors which may be taken into account, such as individuals having pension assets in the UK.