OpinionMar 27 2015

Banks not bashful over pension bank account refusals

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
Banks not bashful over pension bank account refusals
comment-speech

It’s not just the big firms offering small self-administered pension schemes that are suffering from banks’ decisions to not offer bank accounts.

Last week, I received an email from a lady who detailed her troubles in attempting to open a Ssas for her small company.

Last month, I wrote a news story warning that a number of banks are refusing to open accounts for Ssas, stating that they need to be affiliated with a regulated entity or have a corporate trustee in place.

Neither of these is a requirement, as HMRC has consistently confirmed to FTAdviser. We stated as such in our story, which, interestingly, was flagged to the consumer when she asked whether the head of department at the high street bank knew of another who would meet the request.

“In full flow of arguing with the head of... Ssas department, she pointed me in the direction of your article when I asked if she knew of a bank who would open an account for our Ssas.”

The lender she approached refused to open one for her, stating that the Ssas needed an independent trustee, despite this not being a regulatory requirement for Ssas. The lender’s position is that a corporate professional trustee must be in place.

This is an anti-fraud measure, following a number of scandals in recent years and even claims that Ssas in particular could in particular be used by fraudsters seeking to access pension cash.

HM Revenue and Customs previously confirmed to FTAdviser that it is not mandatory for a Ssas to have a corporate trustee, with a spokesperson adding: “We have no plans to make corporate trustees mandatory.”

The lady’s email stated: “When I argued by saying that the Pension Regulator does not require an ‘independent’ trustee, she still wouldn’t move saying it would be impossible to interview individual applicants to determine if they were ‘fit and proper’.”

This latter is in reference to new HMRC rules which require all administrators setting up pension schemes to be ‘fit and proper’, introduced at the last Budget.

Eventually she called another lender who is mentioned in my previous story, who told her she would be best placed to open a business account with the local branch.

Even this will not be easy, apparently. “He said I might have to be persistent as the local bank manager is quite likely to know nothing about Ssas or how to service my requirements.”

donia.o’loughlin@ft.com