Rowanmoor Pensions has officially launched its first product combining a private pension with a discretionary trust.
The company, which is the result of the management buyout of James Hay’s small self-administered scheme (ssas) business, says each ‘family pension trust’ scheme will be established as a separate trust by Cater Allen Pensions and will be individually registered with HM Revenue and Customs (HMRC).
It says the scheme is designed so members will have separate arrangements within the scheme and full control over their own pension investments.
However, the scheme also allows pooled funds within the trust, so members can join together to make specific investments, such as property, through one or more common investment funds established within the scheme.
Rowanmoor says there is no limit to the number of common investment funds which can be set up, and no requirement for all the members to join in, while the investment range includes, among others:
- commercial property;
- loans to unconnected third parties;
- unquoted shares;
- investment trusts;
- offshore funds, and
- gold bullion.
The company also points out the ‘family pension trust’ has the same options as a ssas, including the ability to provide a scheme pension where the fund remains in the control of the trustees while paying out a guaranteed income, so when the member dies the rest of the fund remains in the trust and is not lost to an insurance company or mortality cross-subsidy, unlike an annuity.
Rowanmoor says the new product - the first to be launched since the buyout was completed on 1 September - is aimed at all sectors of the market including the unemployed, self-employed and retired, while, unlike a ssas, it also allows membership of the scheme to minors.
Ian Hammond, managing director of Rowanmoor Pensions, says: “We have sought to provide clients and advisers with an offering which provides the flexibility and functionality we believe is not currently available in the pensions market. We offer the full range of investment and retirement options allowable under legislation, and it provides the best features of both a self-invested personal pension and a ssas.”
If you have any comments you would like to add to this story or would like to speak to its author about a similar subject, telephone Nyree Stewart on 020 7968 4558 or email [email protected]IFAonline
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