Overseas advisors expect sales of Qualified Registered Overseas Pension Scheme products to pick up this year, according to a survey from Skandia International, the offshore business arm of the Skandia group, which has recently started offering the product through a joint venture with Concept.

The survey found that 74 per cent of advisors expect to write more QROPS business over the next 12 months.

The growing demand for the products is driven by increased awareness of them, according to Rachael Griffin, head of product law and financial planning at Skandia International.

The most common reasons advisors cited for recommending QROPS to clients were, in order: the fact that income drawn from them is not subject to UK tax; the wide investment choice allowed within a QROPS; the lack of compulsion to purchase an annuity; and the fact that the fund is not subject to UK inheritance tax on death.

In terms of the underlying investment for a QROPS, 64 per cent of advisors said that an offshore investment bond is the most popular, followed by mutual funds (23 per cent), stocks and shares (9 per cent) and then cash (4 per cent).