SIPP and SSAS Pension Plans explained

Take control of your pension investment and you could make a real difference to your retirement funds.

SIPP and SSAS are both types of self-invested pension schemes, allowing you to access returns from a wide range of asset classes, including direct lending. 

There are several key differences to take into account when considering if either a SIPP or a SSAS is the right option for you. If you're unsure, seek professional financial advice.

SELF-INVESTED PERSONAL PENSIONS

Set up by a specialist provider or administrator, a SIPP offers flexibility and broad investment choice which enables investors to take control of their pension plan.

Anyone can take out a SIPP providing they meet the provider’s eligibility requirements. These are usually based on a minimum fund size because of the higher costs involved in running a SIPP.

Your SIPP Administrator is tasked with carrying out detailed due diligence on all of the investments it allows within the SIPP and ensures compliance with HMRC regulations. 

SIPP image
SSAS image
SMALL SELF-ADMINISTERED SCHEMES

A SSAS is a small occupational pension scheme, normally set up by the directors of a business that want more control over the investment decisions relating to their pensions.
 

If you’re a business owner, you can access money from your SSAS in a variety of ways to grow your business, often more competitively than other sources of finance.

With a SSAS, the trustees are obliged to conduct due diligence on the chosen investments within the pension scheme. 

A guide to the difference between a SIPP and a SSAS

Download your guide to the key features of a SIPP and SSAS and find out more about these different types of self-invested pension schemes. 

This guide is for information purposes only and does not constitute investment advice.  For investment advice, please consult a professional financial adviser.

FIT FOR SIPP & SSAS
How BondMason enables SIPP & SSAS compliant investing

Both SIPP and SSAS investments must comply with HMRC rules. Not all P2P and Direct Lending operators are able to adhere to these rules.  However, the team at BondMason have invested considerable time in developing a bespoke operational infrastructure that can integrate with the work-flow of administrators and enables our SIPP and SSAS Service to be fully compliant.

Connected parties & unintended tax consequences

SIPP and SSAS administrators can feel confident with our multifaceted approach to the connected parties issue. It is a genuinely diverse investment vehicle. Every client has a minimum of 50 positions, and no more than 2% exposure to any single underlying P2P loan. SIPP and SSAS clients can only use our auto-bid tool, which randomly allocates portions of curated loan opportunities. 

Transparency. Where does the money go?

BondMason has full visibility of the flow of funds as well as the quality of platforms, processes and structures we partner with. Our dedicated operations team has direct interaction with the client accounts and flow of funds with each lending partner on a daily basis. This provides SIPP and SSAS administrators with a single place to understand client lending investments and funds flow.

Low cost administration & control

Our tailor-made dashboard enables SIPP and SSAS administrators to quickly and easily monitor client activity, reducing complexity, time and cost. We take a collaborative approach with administrators to refine our systems and processes. Our core ethos is to really understand your needs and concerns so that we can build a truly excellent service for your administrative needs.

Managing lending risk

We take pride in our conservative and investor aligned approach within the direct lending market to enable attractive risk / reward returns.  We only work with lenders that have passed our due diligence process (33 / 100+ to date) and we only approve loans that pass our lending criteria, with the majority of opportunities being asset backed.

Ease of due diligence

Our extensive experience conducting due diligence on lending partners, and our alignment with investors, enables us to anticipate your needs for thorough due diligence. Our professional preparation will enable us to give you the answers most important to you in an efficient manner that optimses your time and costs when conducting due diligence.

Non standard liquidity

The BondMason model means that SIPP and SSAS clients typically have the opportunity to liquidate their positions when required. To date, we have been able to fully liquidate positions within 48 hours.  Liquidity is not guaranteed. Please see our terms for full details.

Our SIPP and SSAS Partners

We are very happy to talk to your SIPP or SSAS provider directly to discuss including BondMason-sourced investments into your pension. Alternatively we can introduce you to the SIPP and SSAS administrators that we already work with. 

Please contact us on 01582 802 000 or email the team at invest@bondmason.com