Ownership
Provided that the members of the SSAS pension scheme are also trustees, there is a lesser regulatory requirement than if all members were not trustees. This is because the members of the SSAS pension scheme are deemed to be investing the funds for themselves.
The trustees can invest the funds as they consider appropriate to the needs of the SSAS pension scheme. For example, the trustees can invest the assets of the pension scheme in the company that sponsors the SSAS pension scheme. This can take the form of loans to the employer and the purchase of shares in the sponsor, however, there are limits that apply. One must be very careful purchasing shares in the company through a SSAS, 'Taxable moveable property' laws can easily be breached. Guidance from the SSAS Practitioner or Administrator is required.
SSAS are suited to groups of individuals who run a common businesses and wish to have complete control over the pension fund. The costs per member are usually lower than using individual SIPPs to pool funds to purchase commercial property. SIPPs do not have the facility to loan funds to associated or unassociated employers. There is no requirement for a professional to be appointed to the scheme, however, the rules are complex and may well prove difficult for individuals without experience running SSAS.
The Trustees may wish to appoint a professional company to assist with the management of the scheme. This company may operate as SSAS Practitioner or as the Scheme Administrator. They both carry out the tax returns and other such submissions to HMRC and the Regulator. If the scheme returns are not correctly undertaken a penalty can be assessed against the trustees of the pension scheme
If a scheme Administrator is appointed to run the scheme, they are usually co-signatory on the scheme's investments. A SSAS Practitioner will not be co-signatory, this leads to Trustees and beneficiaries of the scheme having far greater control over their pension assets and enables the scheme to run more efficiently.
Read more about this topic: Small Self Administered Scheme
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