Pension has finally landed - As an insistent client acting against advice -*DOORS CLOSED 03/09/2021*

JoeCrystal

Diplodicus said:

Can you take us through the administrative steps for doing that, dunstonh?

For the client, would it entail  forming a limited company? 

How about actually google the answer to your question instead? Here is the link to one page for example.

https://prydis.com/insights/2019/how-to-set-up-a-ssas-pension/

xylophone

I had a quick trawl on Google.



https://medium.com/wisealphateam/how-to-set-up-a-ssas-in-10-steps-240bfabfc253

https://www.unbiased.co.uk/life/small-business/about-small-self-administered-pension-schemes-ssas

https://hartleypensions.com/pensions/what-is-ssas/

and so forth.......

Diplodicus

Thank you Joe Crystal and xylophone. So this the process that the client would have to go through to effect a pension transfer as an insistent client

How to set up a SSAS pension: 9 steps that can’t be missed

Wondering how to set up a SSAS pension? Here are nine things that you will need to think about to make sure your scheme is set up efficiently, simply and – most importantly – legally. It is worth pointing out that this whole process can be conducted by a specialist SSAS provider if you do not want to manage the process yourself.

1. Decide who’s going to be part of it

Your Small Self-administered Scheme (SSAS) can have no more than twelve members. Normally these will be directors or senior staff from the company that you work for. However, scheme members may also invite family members to be part of the SSAS. Either way, the first step is to finalise who is going to be part of the SSAS.

1. Choose a name

Your SSAS needs an official name. You can be as banal or creative as you like. From ‘The Smith Family Pension Scheme’ to ‘The M-theory Executive Pension Scheme’.

1. Appoint a scheme administrator

Unless you are working with a professional SSAS provider to manage your scheme, you will need to appoint one of your members to be the scheme administrator. Their duties will involve administrative responsibilities such as fulfilling HMRC obligations and keeping other trustees informed about how the SSAS is performing.

1. Gather up the paperwork

To create your SSAS you will need to collect legal information about the sponsoring employer as well as the personal details and signatures of each member of the scheme.

1. Don’t forget about anti-money laundering legislation

You have a legal obligation to comply with anti-money laundering legislation. Each member of the SSAS will need to have their identity verified.

1. Open a new bank account

You will need a t least one designated bank account for the SSAS., however you can establish multiple bank accounts to serve different purposes should you wish, such as to receive contributions and to handle investment income.

1. Register your SSAS with HMRC

You must register your SSAS with HMRC before you can start to receive contributions from your members. Upon registration HMRC will give you a Pension Scheme Tax Reference (PSTR) number: a unique code that verifies that your scheme has been registered for tax relief and exemptions.

1. Register with The Pensions Regulator

The registrations aren’t over yet. Next you need to register with The Pensions Regulator: the UK regulator for work-based pensions. It’s their job to make sure everything is above board with your pension. ​

1. Share explanatory information with members

You are likely to receive lots of paperwork during the SSAS registration process. This should be distributed to all members of the scheme to make sure every trustee knows what’s required of them and how they can access their pension.

Away you go!

Once you have completed the above steps you are all set to receive pension contributions and make investments. The application process will most likely take between four weeks and twelve weeks.

Need some help?

Well yes, I imagine insistent clients would need some help but they are not going to get it from their financial advisers who would effectively be washing their hands of them at that point . In what sense would this be practicable for someone without foreknowledge of these nine steps? The application process can take as long as the life of the client's CETV figure. 

Pablo7474

Why would the adviser help them if they had advised against transferring?

Maybe if an individual is not up to setting up a SSAS due to lack of knowledge, then they would be better off staying in the DB scheme where they are taken care of? 

arty688

Pablo7474 said:

Why would the adviser help them if they had advised against transferring?

Maybe if an individual is not up to setting up a SSAS due to lack of knowledge, then they would be better off staying in the DB scheme where they are taken care of? 

Very patronizing 

Diplodicus

The principle that financial advisers - and their wingmen - seem to be struggling with is that the final determination belongs to the client.
When a transfer depends on the recommendation of the adviser, the process - which was always flawed - is shot to bits.
The SSAS route following a recommendation not to transfer looks wholly impractical for the average client. 

If financial advisers tell their clients at the outset that they can still transfer against a recommendation and there are no ways to do that then they are selling them a service that they can't use as intended. And that's failing to treat their client fairly.

QrizB

Diplodicus said:

.. I imagine insistent clients would need some help but they are not going to get it from their financial advisers who would effectively be washing their hands of them at that point . In what sense would this be practicable for someone without foreknowledge of these nine steps?

I have friends who run small businesses (trades, mostly, builders and plumbers) as Ltd Cos. They have accountants. I would expect their accountants to be quite capable of setting up a SSAS if required. And small business accountants aren't particularly expensive, one of them pays £900 for a whole year's accounts.

HappyHarry

Diplodicus said:

If financial advisers tell their clients at the outset that they can still transfer against a recommendation and there are no ways to do that then they are selling them a service that they can't use as intended. And that's failing to treat their client fairly.

Why would a financial adviser do that?  I can't see why it would come up at the outset? It's not something I do, nor something any of my peers do, as far as I am aware. 

Ibrahim5

HappyHarry said:

Diplodicus said:

If financial advisers tell their clients at the outset that they can still transfer against a recommendation and there are no ways to do that then they are selling them a service that they can't use as intended. And that's failing to treat their client fairly.

Why would a financial adviser do that?  I can't see why it would come up at the outset? It's not something I do, nor something any of my peers do, as far as I am aware. 

You would have to be pretty crooked not to discuss the implications of the various possible outcomes.

arty688

Maybe it might be nice to tell someone there is a good chance they are wasting £K's as the deck is stacked against them. As the financial adviser is defiantly not acting as a wingman as covering their chances of being sued seem to be the primary aim of the report .