Articles - SSAS takeovers a guide to switching professional trustees

 By Ian Ward, Partner at Barnett Waddingham

 In fact, SSAS takeovers are achieved regularly and can be less work than transferring your SSAS to a different pension arrangement altogether. We have previously outlined the possible reasons for wanting to change your SSAS trustee and the general timelines involved.

 Whether you are ready to start your SSAS takeover today or are looking for more detail on what the process entails, we are here to help you.

 Here is our three-step guide to initiating a SSAS takeover.

 Once all is agreed, the existing trustees would sign Terms of Business documents with the new professional and inform any incumbent professional trustees of the forthcoming change. Next, the existing trustees would need to go through the usual identity verification processes, to satisfy the legal requirements protecting consumers and their assets.

 2: Liaison and appointment
 Where there is an incumbent professional trustee, the next step involves the incoming trustee writing to them to declare the the request for a SSAS takeover and seek professional clearance to step into the role. The incumbent may also be asked to provide scheme records and documents, unless the trustees have provided this directly (which is often done to keep handover fees down).

 Typically, the new incoming trustee will also provide the documentation to effect the change of trustees. This documentation will usually need to be signed by the outgoing trustee, who may wish to suggest amendments.

 Once the appointment has been confirmed by all parties, the incoming trustee would then be able to update HMRC and the regulatory bodies of the change. Meanwhile, the existing trustees should notify other professionals that they deal with – such as accountants, property managers or solicitors – that the SSAS takeover is underway.

 3: Asset re-registration
 The final step of the SSAS takeover involves updating several parties on the change of professional trustee, starting with updating the scheme’s bank. This could be as simple as updating existing bank details to reflect the change.

 However, if the incoming professional trustee provider insists on a specific bank being used, a full bank transfer would be needed.

 "While the process of re-registering assets can take a lot of time, transferring the SSAS to any alternative pension arrangement would be equally laborious."

 The trustees will also need to update property records with the Land Registry, as well as other assets such as investment portfolios.

 While this process can take a lot of work and time, any change of this magnitude, including transferring the SSAS to an alternative pension arrangement, would be equally laborious, if not more so.

 Frequently asked questions

 How do I update property title when I change trustees?
 The trustees can choose whether to add the new trustee as one of the registered owners (there is a maximum of four on the Land Registry title. If the new trustee is not to be a registered owner, then a restriction should be entered on the document of title to require the new trustee’s consent to sale or letting of the property. The trustees should ask their solicitor to prepare appropriate documentation for signature.

 How do I update a bank account?
 The new trustee will need to be added as a signatory on the account, and this usually means either a form to update the mandate, or a new mandate. For banks on our panel we can provide the paperwork for completion. For other banks, the easiest solution is for the trustees should contact the bank to request the appropriate forms.

 How do I update the provider of a share portfolio or discretionary fund manager when I change trustees?
 The trustees will need to complete the paperwork required by the provider in question. They can request the paperwork themselves, or ask us to approach the provider (we need written authority from the trustees to do so).

 How do I update property title when I change trustees?
 The trustees can choose whether to add the new trustee as one of the registered owners (there is a maximum of four on the Land Registry title. If the new trustee is not to be a registered owner, then a restriction should be entered on the document of title to require the new trustee’s consent to sale or letting of the property. The trustees should ask their solicitor to prepare appropriate documentation for signature.