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SSAS Rules & Regulations
One of the main attractions of a Small Self-Administered Scheme (SSAS) is that members have much more control over their pensions than they do with traditional pensions. But does this control come at the expense of security? Not at all. SSAS regulation must be adhered to. A SSAS is overseen by The Pensions Regulator AND must be registered with HMRC and abide by HMRC rules.
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General SSAS Rules
A company director can have a SSAS. As SSAS can have up to 11 members in total. A SSAS is run by its members, who are trustees of SSAS. The scheme and its paperwork is managed by the Scheme Administrator, who can be a member of the scheme. Whilst not a legal requirement to have professional legal and compliance support, TLPI strongly recommend you ensure this is part of the service you employ to help protect the scheme from breaching HMRC rules and The Pensions Regulator’s regulations.
Within HMRC rules, a SSAS can invest in a range of assets, including commercial property or hands-free property investments. The SSAS scheme can provide commercial loans so could provide a loan to the company. This loan can be used to purchase assets, for example a building such as the company premises, or for any other valid business purpose. A SSAS can borrow money, via a mortgage for example, for investment purposes.
Do SSAS rules allow it to invest in property?
Within HMRC rules, a SSAS can invest in a range of assets, including commercial property or hands-free property investments. The SSAS scheme can provide commercial loans so could provide a loan to the company. This loan can be used to purchase assets, for example a building such as the company premises, or for any other valid business purpose. A SSAS can borrow money, via a mortgage for example, for investment purposes.
A SSAS Is a Trust which must adhere to SSAS regulation
We are often asked, is there a SSAS pensions regulator, how are SSAS pensions regulated, and who makes SSAS pension rules. To a certain extent, a SSAS is self-regulating. It is a trust, which means that it is run by trustees for the benefit of its members. In practice, all members of a SSAS are trustees of the SSAS scheme.
- Any member of a SSAS can be a trustee.
- A trustee does not have to be a member of the SSAS.
In the majority of cases, an SSAS is run by the members for the members, meaning there is no outside influence from trustees who are not members of the scheme. The rules of the scheme are dictated by HMRC.
Why Might You Not Want to Be a Trustee?
A SSAS member can opt out of being a trustee — but the default position is that all members should be trustees unless there is a valid reason or the scheme is structured to allow otherwise.
A SSAS must have at least 1 trustee to continue.
The Pensions Regulator
Lastly, workplace pensions, including SSAS, are regulated by the Pensions Regulator (TPR), which is sponsored by the Department of Work and Pensions. TPR is responsible for making sure all employers set up their employees with a pension and that employee pensions are protected.
As a SSAS is a workplace pension, each SSAS must be registered with TPR if there is at least one employee enrolled. If the SSAS is made up of just one member, such as the employer, then it does not need to be registered with TPR. The Pensions Regulator can investigate and prosecute those who break the law.
