It is a sad fact that scammers and pension liberators have in the past targeted Small Self Administered Schemes (SSAS) with a view to abusing the rules governing these tax-advantaged pension funds.
In an effort to prevent this, HM Revenue & Customs (HMRC) requires that all parties appointed as the Scheme Administrator for the purposes of the pension tax legislation, are able to declare themselves as ‘fit and proper’ persons.
HMRC can refuse to grant a new scheme registered status if it believes this not to be the case and can withdraw the scheme’s registered status if it has reason to believe that any of the parties making up the Scheme Administrator do not meet the criteria.
HMRC has issued guidance notes to assist individuals in respect of who could act as a Scheme Administrator. The Scheme Administrator is likely to be a ‘fit and proper’ person if they are familiar with, and capable of competently performing, the Scheme Administrator’s responsibilities and there is nothing in their past behaviour to suggest that they should not be responsible for the financial management of the pension scheme.
A Scheme Administrator might be an individual or several individuals acting together (such as the trustees), a corporate body or public sector body. The scheme’s trust deed and rules will usually set out who the Scheme Administrator is. With a Dentons’ SSAS, the member trustees (those persons responsible for the day to day running of the SSAS and for all the investment decisions) and Dentons’ Professional Trustee company will together be the Scheme Administrator. All members are initially appointed as member trustees by the sponsoring employer, in addition to the Professional Trustee.
Whatever your retirement needs, one of our experts will be happy to discuss how we can help you achieve your goals.