Stupid is as stupid does

It was only a matter of time, but “self investment” by SIPPS is now upon us. It is reported that some scheme administrators are now “permitting” the investment of scheme funds into unquoted shares.

This will disappoint many who felt that, leaving trust investment law niceties aside, the risk of falling foul of the tangible moveable property provisions in FA 2006, Sch 21 would be sufficient to deter scheme members from wanting to invest into the share capital of their own companies; it saves you tax, don’t you know (cough).

To their credit, James Hay, Hargreaves Lansdown, and others are refusing to indulge scheme members (source: FT).

With the current pensions regime having dispensed with the requirement for an independent scheme trustee, and with many providers now distanced in law from the schemes they now only administer, one has to wonder how many would still be so keen to “respond to the needs of the market” if they were obliged to assume trustee liability and without indemnity.