| Structure |
An individual based arrangement, often (but not always) created by a 'master-trust' that creates the SIPP - individual scheme members' 'arrangements' being Sub-trusts of the mastertrust. As such this is a personal pension arrangement. |
A scheme that can accommodate up to eleven members. This too is a trust-based scheme, in most cases, created at the request of an employer for directors and/or key personnel (although it does not have to be an employer). As such this is an occupational pension arrangement. |
| Trustees |
In all cases there will be a 'professional' trustee, unless set up under Deed Poll, being either the scheme operator or a separate trustee company. Depending on how the scheme is set up, the individual SIPP member may also be a trustee of their SIPP. |
It is usual for all members to also be scheme trustees. Whilst not a requirement, in most cases 'professional' administrators and/or trustees can be appointed to assist the member trustees in the running of the scheme. |
| Investment - Loans |
A SIPP cannot make a loan to a 'connected party' without incurring a tax charge. |
A SSAS can make a loan to a 'sponsoring employer' subject to stringent conditions regarding the loan term, amount, repayments, interest rates and security. |
| Investment - Shares |
A SIPP may invest in shares of a company even if it is connected to the scheme member (although there may be tax implications if 20% or more of the share capital is held by the member and member's connected persons, including SIPP interests). |
A SSAS is restricted to investing no more than 5% of the scheme assets in the shares of any one sponsoring employer (although there may be tax implications if 20% or more of the share capital is held by the member and member's connected persons, including SSAS interests). |
| Regulation |
The marketing and running of a SIPP is covered by the Financial Conduct Authority. A SIPP is also subject to an element of regulation by The Pensions Regulator. |
A SSAS is subject to regulation by The Pensions Regulator. |
| Complaints |
Can be made to the Financial Ombudsman Service in relation to the sale of a SIPP, fees, pension administration or any other matter relating to the SIPP or the Pension Ombudsman where it relates to pension administration. |
Can be made to the Pension Ombudsman in relation to pension administration. |
| Compensation |
Failure of the SIPP operator is covered by the Financial Services Compensation Scheme. |
None on failure of SSAS operator or trustee. |
| Investments |
Specific investments or shares thereof held for each member |
Investments held for all members with each member having a notional interest in the investments. |