Prevention
It is impossible to completely prevent SSASs from being used for pensions liberation when legislation has loopholes that enable individuals with criminal intent to establish pension schemes in order to remove the cash, or to transfer into pension arrangements where the rules are so widely drawn that early access to funds is available.
One way to improve the situation would be to reinstate the requirement for a professional administrator, just as there was between 1979 and 2006. History shows that the professionalism of the independent trustee, who risks losing their rights to operate if HMRC rules are breached, ensured an orderly market. It is hoped the Revenue, or the Treasury, will see while it may not be able to reappoint a pensioneer trustee to all schemes, it could require SSASs to have an experienced administrator who is subject to audit and competency standards and required to enter into an undertaking with HMRC to ensure that schemes do not break rules.
Ian Hammond is managing director of Rowanmoor Group plc
