FAQ's - ROLE OF TRUSTEE
Q. Who is the Trustee
A. Under the MW S.I.P.P., there is just one Trustee – MW S.I.P.P. Trustees Ltd.
Q. What is the duty of the Trustee?
A. The Trustee has a prime and overriding duty of care for the members of the S.I.P.P.
Q. Who is the Scheme Administrator?
A. MW Pensions Ltd is the Scheme Administrator.
Q. What is the role of the Scheme Administrator?
A. It is the Scheme Administrator who has responsibility to HM Revenue and Customs (HMRC) for any tax due – it is to the Scheme Administrator and not the member to whom HMRC turn for any taxes. However, the Terms and Conditions of the MW S.I.P.P. make it clear that MW Pensions Ltd, as Scheme Administrator, will in turn require any tax payments to be made from the S.I.P.P. assets, or failing that, the member themselves.
From the 6th April 2007, MW Pensions Ltd will be governed and authorised by the Financial Services Authority under the new regulatory requirements from that date and as such will be authorised to “set up, administer and wind up personal pension schemes”.
Q. Who owns the assets of S.I.P.P.
A. The Trustee is the registered owner of all the assets of the S.I.P.P. However, the member is sole beneficial owner of the assets of the S.I.P.P. i.e. the Trustee does not benefit in any way whatsoever from the assets of the S.I.P.P.
Q. Who decides which investments (property and non-property) to buy within their S.I.P.P.?
A. The member makes those decisions, taking advice, as appropriate, from his financial advisor, stockbroker etc. The Trustee is not in any way involved in deciding which assets should be bought.
Q. How do I buy/sell (non-property) investments in the S.I.P.P.?
A. You provide details of your financial advisor or stockbroker etc to the Trustee who then liaises with them to set up the appropriate account for your S.I.P.P. When you wish to purchase or sell an asset for your S.I.P.P. e.g. stocks and shares or trustee investment bonds, you simply instruct your advisor/broker. They send the paperwork etc to the Trustee who signs it as appropriate. The Trustee sends a cheque, drawn on your S.I.P.P. bank account, in settlement of monies due in respect of the transaction, or deposits the monies from a sale into your S.I.P.P. bank account. The Trustee is the sole signatory on the S.I.P.P. bank account.
Note that the HMRC does not permit any overdrafts on a S.I.P.P. bank account.
Please note that there are no prohibited S.I.P.P. investments post 6th April 2006. A S.I.P.P. can hold any investment. However, some (most) are entirely tax free i.e. no tax on income or capital gains. Residential property investment is also permissible providing it meets the “Genuinely Diverse Commercial Vehicle” guidelines as set out by HMRC.
Direct investment in, and wholly owning, commercial property is allowed and is a
tax-free investment.
Other investments e.g. wholly owning a residential property or investing in art and antiques will generate penal tax charges. It is the responsibility of the member and their advisor to ensure that they are aware of any tax consequences of the investments held within their S.I.P.P. Neither MW Pensions Ltd nor MW S.I.P.P. Trustees Ltd takes any responsibility for advising on whether there may be any tax consequences of holding a particular investment.