People with small self-administered schemes (SSAS) face “significant costs and delays” on transfers to other savings vehicles, such as self-invested personal pensions (SIPP), according to Talbot and Muir.

The pension specialist firm stated that many who decide to transfer their SSAS benefits but want to retain assets, such as property, were faced with “unjustified” charges and administrative delays.

SSAS are not regulated by the Financial Conduct Authority (FCA) but Talbot and Muir believes they should be protected by certain FCA regulations to help safeguard clients.

Specifically, the firm said that it “seemed unfair” that SSAS members are not subject to the FCA’s fair treatment of clients ‘Outcome 6’, which stipulates that consumers should not face unreasonable post-sale barriers imposed by companies to change product or provider.

Talbot and Muir director, David Bonneywell, noted that the firm has seen a “marked increased” in enquiries from independent financial advisers regarding SSAS clients that wish to move to a self invested personal pension.

He continued: “One reason for the contact is that these schemes are facing very high costs to transfer, and they are looking to see if there are ways to minimise this.

“Current administrators appear to be unhelpful with regards to the transfer and are putting restrictive internal red tape in place, in particular when a property is involved.

“A number of advisers are now recommending that the SSAS changes administrator and professional trustee, and then effects a transfer to a SIPP in a cost efficient and timely manner.”

In February 2017, The Pensions Regulator (TPR) suggested that there should be a ban on the establishment of any new SSASs.

Speaking at the time, TPR executive director for regulatory policy, Andrew Warwick-Thompson said: “I believe that pension transfers to SSAS arrangements ought to be banned.

"In fact, to put a stop to their abuse, I believe that an outright ban on the establishment of any more SSAS arrangements also warrants serious consideration.”

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