Cost is an element of choosing a SSAS administrator, but Mr Lamb says it isn’t the most important. “If you go for the cheapest option then you can end up with poor service and that can be detrimental to our clients and reflects very badly.”
New scheme administrator ‘fit and proper’ person rules came into effect on 1 September last year. The rules are amendments to the Finance Act 2004 and were initially meant to prevent or discourage pension liberation.
Ms Trott says the guidance was a “move in the right direction” to ensure SSASs are run in an appropriate and informed way. “It has been possible for many years for anyone to administer a SSAS, without any knowledge of the legislation that surrounds the scheme they are running.
“Although the main aim of the guidance is to give the HMRC the power to deregister schemes that are being run inappropriately and possibly with liberation in mind, it covers the issues of scheme administrators who do not fully understand pensions legislation and could cause harm to scheme members by this virtue alone.”
But while providers have largely welcomed the new legislation, there are still some concerns.
Lisa Webster, technical resources consultant at AJ Bell, says, “the introduction of the ‘fit and proper’ person test has been a welcome move in the fight against pension liberation, but has not resolved the issue of existing “orphan” schemes that are not being looked after properly.
She adds, “We do get asked to take on such schemes and it is becoming increasingly difficult where no one has kept on top of the administration, accounting records, fund splits etc. Occasionally such clients have unwittingly allowed a payment, for example by allowing a loan to their company without security.”
While the future shape of the pensions industry remains uncertain, one thing this survey has indicated is that the demand for SSASs is increasing. There do not seem to be any major concerns across the board for what the pension changes may mean for SSASs, and numbers are increasing as the years go by.
A SSAS will remain a popular choice for directors looking for an alternative pension scheme, and providers are more than ready and willing to accommodate them.
