Under the HMRC QROPs rules, UK individuals having who have accumulated benefits under a private pension in the UK, but who have left the UK to take up expatriate residence elsewhere, not necessarily Malta, may transfer such benefits to a Malta QROPS.

Such UK individuals as beneficiaries under a Malta QROPS may only receive benefits from the scheme once they have reached the age of 50 but before turning 70; although exceptions for early access exist upon death of invalidity. Upon maturity of the QROPs, an individual beneficiary would be entitled to either opt to take an annuity and/or a lump sum payment. All such details, as to timing and amounts of benefits, would be specified in the trust deed/scheme document.

Setting up a QROPS in Malta occurs in the form of a trust or via contract; eacch scheme must be licensed by the MFSA.

Diskcussion with the MFSA before submitting any documents or applications are highly advisable and can substantially shorten the time in which the Malta QROPs may be established.

The MFSA license would be procured pursuant to the submission to the MFSA of an appropriate application, the accompanying trust deed/scheme document (detailing, for example, the purpose and rules governing the scheme) and any other documentation or information required by the MFSA.

The MFSA would consider the application and supporting documentation having regard to:

• compliance with the provisions and requirements of applicable legislation

• the protection of investors and the general public

• the protection of the reputation of Malta taking into account Malta’s international commitments

• the protection of competition and choice

• the reputation and suitability of the scheme administrator and any other parties connected to the scheme

Every Malta pension scheme must appoint essential officials, tasked with the function of management and responsibility of the scheme.

An auditor as approved by the MFSA.

An administrator – who may or may not also be the trustee – responsible for the day to day management and operation of the scheme.

A trustee, authorised by the MFSA, of the scheme – whose purpose is to set up the trust. The trustee may also undertake the functions of administrator provided, of course, that the trustee has all requisite expertise and resources.

A custodian – the MFSA may re require the appointment of a custodian charged with safekeeping all the scheme’s assets and who may be required to monitor the administrator in the exercise of his duties.

A licensed asset manager – required to manage the assets of the scheme should the administrator not have the necessary expertise or resources to do so.