SSASs, being individual occupational trusts are subject to regulation by The Pensions Regulator (TPR). Unfortunately SSASs, having no compulsory professional body acting in the interest of scheme beneficiaries, have been subject to some misuse by way of pension liberation, a matter that both TPR and HM Revenue & Customs are aware of, with the expectation that preventative measures may be implemented, potentially increasing costs of SSASs also.
Complaints concerning maladministration under either arrangement would fall under the remit of the Pension Ombudsman, while mis-selling of a Sipp, fees or other matters would be referred to the Financial Ombudsman.
Finally, while the Financial Services Compensation Scheme may cover failure of a Sipp provider, no such protection exists for a SSAS. Failure of investments held within either vehicle would depend upon the type of asset and custody of ownership.
Results
Obviously some client circumstances will point an adviser clearly in the direction of either SSAS or Sipp. For some others the decision might not be so clear-cut.
Once a decision has been made as to which of the two vehicles is appropriate, only half the job has been done. The next hurdle is to determine a provider of the service that best meets client expected requirements.
Ian Stewart is joint managing director of Dentons Pension Management
