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  4. SSAS takeovers: a guide to switching professional trustees

Moving to new SSAS trustees or providers – known as a SSAS takeover – requires care but can be achieved painlessly when the forthcoming steps are known in advance.

The thought of moving to a new Small Self-Administered Scheme (SSAS) professional trustee – or appointing one when no other trustee is in place – may seem daunting, particularly if it is not something that you have been involved with before.

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.

 

1: Selection and engagement

The first action when proceeding with a SSAS takeover is the selection of a prospective new professional trustee by the existing trustees. This should involve discussions, preferably with a virtual or in-person meeting, to confirm that a working relationship is indeed possible.

Several practicalities will need to be considered at this juncture, covering all relevant aspects of the service required by the SSAS. This could include:
 

  • Are there special banking arrangements? 
  • Who authorises transactions? 
  • How are new investments approved? 
     
"Existing trustees must sign Terms of Business documents with the new professional and inform any incumbent professional trustees of the forthcoming change."

Most professional trustee providers, including Barnett Waddingham, have an Allowable Investment Schedule, so a key part is to ensure that chosen investments (and likely future ones) are compatible with that.

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.

Transferring a SSAS to BW

As a SSAS pension administrator and trustee service acting for thousands of clients for over 30 years, we have built up a huge amount of knowledge of pensions and experience in dealing with these schemes and the variety of investments that are held within them.

If you are interested in transferring your SSAS pension to Barnett Waddingham and benefitting from our highly-accredited independent expertise, please:

Or call us on 0333 11 11 222 and ask for the SSAS team. We will be happy to help.

 

Frequently asked questions

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.

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.  

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). 

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.

A Small Self-Administered Scheme (SSAS) is a type of pension scheme that is set up by an employer usually for a select number of directors. It differs from a Self-Invested Personal Pension (SIPP) in that it is a separate scheme for the employer and our costs are charged per scheme rather than per member.

For more information on SSAS pensions, read our SSAS FAQs or visit our SSAS literature library for further reading on this topic.

Some SSAS have not been thoroughly checked for years. If this sounds like your scheme, we would recommend reading our 'SSAS Repair Shop' series of case studies to help ensure your arrangements are in good shape.

SSAS Repair Shop

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Start transferring your SSAS pension

To begin transferring your SSAS pension to Barnett Waddingham, download and fill in this form and email it to us or call us on 0333 11 11 222 and ask for the SSAS team for help.

Start your transfer
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