Submitted by Sestini & Co
| on Wed, 11/01/2017 - 19:07 | In Pensions
The upcoming introduction of the Markets in Financial Instruments Directive from 3 January 2018, known as the MiFID II rules, is EU legislation designed to regulate firms who provide services to clients linked to financial instruments such as bonds, shares and units in collective investment schemes. (Find out more about MiFID II on the FCA site.)
There are a number of scare stories circulating about how this legislation and specifically how it might affect Small Self-Administered Schemes (SSAS pensions) – in particular with relation to the legal entity identifier (LEI) and the scheme trustee being unable to release money to the client without an LEI.
However, currently an LEI is only needed if the SSAS is trading in reportable shares or equities and bond traded on a regulated market; schemes with unquoted shares don’t need them.
If an LEI is required, scheme trustees apply to the London Stock Exchange for the document and once that is used then those reportable holdings can be cashed in. Many SSAS holders will have a mix of investments by retirement and so will have other investments they can cash in and/or be planning to take income drawdown rather than cash-in specific investments and so would not be affected.
We take our responsibilities as trustees very seriously and ensure that all our staff have relevant experience and qualifications, topped up by regular training sessions as this complex area develops.
At Sestini & Co Pension Trustees Ltd we provide bespoke pension administration services to support those who wish to take control of their retirement plans and act as Professional Trustees for SSAS schemes.
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