Sales of small self-administered schemes dropped over 2016 compared to the previous years when it was consistently on the increase, amid calls for a crackdown on the regulation of the sector.
Data from FTAdviser's sister publication Money Management shows the overall figure for Ssas sales stood at 16,677 for the year to the end of November 2016, compared to a total of 20,751 at 30 November 2015.
In the example of Ssas provider Rowanmoor, figures show sales at 103 from January to December 2013, 116 for the same period in 2014, and 336 for the same period in 2015 - however they fell back to 128 up to the 1 December 2016.
Lower Ssas numbers come amid calls for tighter regulation of the sector from both the industry and The Pensions Regulator, following concerns this type of scheme is ripe to be abused by scammers and those seeking to illegally liberate their pensions.
The government is currently consulting on giving consumers greater protection when investing in Ssas.
Robert Graves, head of pensions technical services at Rowanmoor Group, welcomed the consultation.
He said: "While it appears that there may be some disreputable firms out there giving Ssas' a bad name, established providers such as Rowanmoor are fighting to bring professionalism back and increase consumer confidence.
"Ssas can be beneficial for many self-employed business owners and with the right scheme governance and a reputable administrator, should not be readily dismissed. Key to this consultation is the proposal to stop dormant companies having a Ssas.
"This is a concern; how do you distinguish between a company set up deliberately as a dormant company with no intention to trade simply to allow a Ssas to be established and a start up trading company?
"What we need is a system that brings back confidence and trust in the Ssas market."
In November this year, The Pensions Regulator advised savers to avoid small self-administered schemes, branding them insufficiently regulated and an easy target for scammers.
Prior to this, the industry had been calling for HM Revenue & Customs to retrospectively apply the fit and proper persons test for small self-administered scheme administrators.
However, data obtained by FTAdviser suggested some of the providers are not experiencing the decrease in Ssas figures described by the overall figure.
Curtis Banks saw an increase in sales between 2015 and 2016 from 325 to 355 at the end of November for both years.
Overall figures for Mattioli Woods went down from 1,636 to 1,533 for the same period according to the Money Management survey.
However, FTAdviser was told by a spokesperson for Mattioli Woods there was a 9 per cent increase in enquiries in the first half of the current financial year.
Murray Smith, group managing director for Mattioli Woods, said: “From our perspective, Ssas is a very powerful tool for the right client in the right circumstances.
“It gives greater ownership because it is actually their own pension scheme. You have a greater level of control. It can do things a Sipp can’t, like lend money back to the client’s business.
“It’s a little more expensive to set up but after that ongoing costs are about the same as for a Sipp.
“There may have been an increase in the marketplace because of the capital adequacy requirements which have come in for Sipps. Since September, there has been a uplift in the requirement to hold capital”.
ruth.gillbe@ft.com
