Merchant Investors is to launch a simplified version of the small self-administered scheme (Ssas) pr...
Merchant Investors is to launch a simplified version of the small self-administered scheme (Ssas) product aimed at directors and senior employees.
The Director's Portfolio, to be launched 1 November, allows members a large degree of control over underlying investments but does not require the administrative burden normally associated with a Ssas, such as actuarial reports and the appointment of a pensioneer trustee.
George Ladds, a marketing executive at Merchant Investors, said the product offers most of the benefits of a Ssas with the simplicity of an executive pensions scheme.
The scheme will be administered by Merchant Investors and can also be run in conjunction with an existing Ssas.
"If the member is managing his own fund and wishes to purchase or sell shares, all he has to do is instruct his nominated stockbroker, and we will settle the pension fund," said Ladds.
Ladds said the scheme also includes the option to hire a fund manager, transfer funds from other approved pension schemes and invest in gilts, investment trusts or other insurers' investment funds.
The scheme is not a Ssas but, because it is written under Merchant Investor's executive pension trust, schemes will only need approval from the Inland Revenue based on the individual's circumstances.
Minimum investment to the scheme is £50,000 per member and further minimum contributions are £200 per month or £2,000 pa and/or a minimum additional single contribution of £2,000.
Employers must pay a minimum 10% of total contributions to each member's scheme and members can contribute up to 15% of their earnings.
An administration charge on each contribution up to £99,999 is 2% while for contributions of £100,000-£199,999 the charge is 1%, dropping to 0.5% for contributions in excess of £200,000.
External charges, such as property transactions and loan transactions secured against a property or policy, have an additional charge of £750 for the former and £750 or £400 for the latter two options. Professional fees are not included in these charges.
Annual management charg-es are 0.75% per annum subject to a minimum £500pa and if commission is involved, the administration charge is increased by 1%.
Optional fund based renewal commission of up to 0.5% is paid for by unit cancellation.
Despite improved risk appetite
FOS award limit increase
Relates to 136 million transaction reports
Ceremony will take place 13 November