Rival firms should axe exit fees to help unlock SSAS potential
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2 comments
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Monday, 11 April 2016 22:37
posted by Mark Canning
Jeff - Many such takeover requests - a sizeable minority - do come from "orphan" schemes and I'm not suggesting that cutting exit fees would help here. I don't believe the fit & proper test has (or is likely to) make a significant impact on the ever increasing number of well meaning but ultimately poorly administered SSAS which would undoubtedly benefit from a return to a mandatory Pensioneer Trustee type role.
We have also noted that increasingly SSAS clients who do have a professional trustee are hesitant to move, even where they maybe subject to poor service and/or high charging, due to the "cost to exit". Personally I'd be keen to see this cost be disclosed on an annual basis as part of the scheme renewal so clients don't receive a nasty surprise if/when considering appointing a replacement trustee. -
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Thursday, 07 April 2016 12:53
posted by Jeff Steedman
"Many of the ‘take-over’ requests we see for SSAS come from schemes that have disposed of their Pensioner Trustee post A-day and since encountered difficulties." Mark, I am not quite sure how cutting exit fees would help these situations?
Surely the focus should be on the Fit & Proper persons check being implemented by HMRC? A focus on the "orphan" SSASs is required as many will be drifting, breaching rules (often by accident / due to lack of knowledge)and in the need of professional trustee type technical knowledge.
What does HMRC do with the information contained in the annual SSAS return, submitted on-line?