Trustee duties and suitability
30/09/2024
A SSAS is a Member-Directed Pension Scheme. Managing such a scheme requires careful planning and a thorough understanding of the associated responsibilities. As defined by HMRC, a Member-Directed Pension Scheme gives member trustees full control over the investment decisions within the scheme.
Recent guidance from the Pensions Ombudsman says that trustees should be keeping better records of the decisions made to make investments and why these are considered suitable for the pension scheme membership. To assist with this, we are now issuing Trustee Investment Decision forms for completion for some investment asset types. If you need help with these, please just ask.
Key Responsibilities of Member Trustees
- Investment Decisions: According to the scheme rules, all investment decisions must be made unanimously by the member trustees. This collaborative approach ensures that all viewpoints are considered, but it also requires effective communication among trustees.
- Seeking Proper Advice: Under legislation the member trustees have a duty to take proper regulated financial advice, as well as legal, accountancy, and tax advice when making investment decisions. This ensures that decisions are well-informed and consider diversification and the suitability of investments.
- Duty of Care: As a member trustee, you are expected to act prudently, responsibly, and honestly. This means making decisions with care and in the best interests of the scheme beneficiaries.
- Avoiding Conflicts of Interest: Trustees must act impartially and manage any potential conflicts of interest. This is essential to maintaining the integrity of the decision-making process and ensuring that decisions are made solely with the beneficiaries’ interests in mind.
Protecting Against Pension Scams
Pension scams pose a significant risk, potentially jeopardising your retirement savings. It is crucial to be aware of how scams operate and to exercise caution when making investment decisions. For guidance on recognising and avoiding scams, and for steps to take if you suspect fraudulent activity, visit: Avoid and report pension scams | The Pensions Regulator
Whitehall Trustees Limited, while responsible for holding assets and acting on investment instructions, does not provide financial advice or act as a professional trustee.
