Let’s get to the bottom of it: does a Small Self-administered Scheme (SSAS) need a professional trustee or not?
The short answer is no.
Since 2006 SSAS’s have not been legally required to employ a professional trustee. But that doesn’t mean it’s a bad idea to have one. In fact, employing a professional trustee is strongly recommended.
The role of the professional trustee is to ensure that the pension scheme is operated in accordance with pension legislation and tax regulations. Professional trustees can also be co-signatories on scheme assets and are able to prevent certain investments and actions if they are believed to be at risk of jeopardising the SSAS. They can act as an independent mediator should there ever be a dispute between the scheme members.
Choosing a professional trustee
Professional trustees can be an individual or a company, and they must have a firm grasp of pension legislation and regulations. Specifically, they need to be deemed ‘fit and proper’ for the role by HMRC. They should also by experienced in coordinating transactions and involving different professionals when required.
What about some expert insight?
If you would like some impartial advice on your SSAS or your choice of professional trustee, we have the expertise to help. We can even act as a professional trustee for your SSAS if you wish. For a free initial consultation, please get in touch. Or find out more about our SSAS services.