The standout figures come from James Hay, Mattioli Woods and Rowanmoor who set up 118, 121 and 133 SSASs in 2013 respectively, the largest amount of all providers. The average number of schemes each provider set up in 2013 stands at 40, up from 31 in 2012.
SSAS breakdown
The survey results make it clear there are four main contenders in the market. Barnett Waddingham, James Hay, Mattioli Woods and Rowanmoor are the only four to hold more than £1bn of funds under management. The largest, Barnett Waddingham, has £3.2bn in more than 1,800 schemes. Rowanmoor comes in next, with £2.8bn across more than 3,000 schemes.
Like any other product, it is essential to know exactly what is offered and how much it all costs. Table 2 shows a breakdown of exactly what is available, along with charges from each provider for their SSASs.
There are many types of SSAS, all with different business models. As previously mentioned, the initial charge into a SSAS is generally much higher than for a Sipp. Some providers – namely Scottish Widows and Xafinity – charge nothing from the outset, but differ in their approach to annual fees. For example, Scottish Widows has a £940 flat annual fee, while Xafinity charges £750 each year for the first two members of the scheme, and a subsequent £290 pa for each additional member. Adding a new member to an existing scheme also comes with a £145 fee.
Other than these, the cheapest according to the survey is £200 for JLT Premier Pensions’ Premier SSAS, excluding VAT. The highest fee is from Mattioli Woods, which charges £2,500, however its annual fees are slightly lower than other providers. Wensley Mackay did not provide a breakdown of fees, but states that overall, it charges £2,500 for one year all-inclusive, with 0.25 per cent Nav thereafter. It should also be noted the cost includes any property purchases and loanbacks within the first year.
While both these fees may seem high, it may not be the case. Some firms choose to calculate charges on a time-cost basis, or set charges by negotiation. Many providers have either initial, annual or one-off property-buying charges set, but others use a different structure, making it difficult to compare with their peers.
Last year’s survey showed Nigel Sloam & Co as one of the priciest options of the SSAS providers. The firm has reduced its charges to an initial fee of £1,000 plus £150 for every additional member, with an ongoing annual cost of £450 plus £135 for additional members. Although cheaper than last year – its initial fee was £2,400 with a £1,410 annual fee – it still remains one of the highest, particularly when looking at charges for loanbacks. The firm charges £975 for this, and any fees for buying property are calculated on an initial time-cost basis and an annual £200 fee. The firm has previously attributed higher costs to the wealthier clients the firm caters for.
