Self-Invested Personal Pension Due Diligence

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1 Self-Invested Personal Pension Due Diligence About Yorsipp Yorsipp Limited (Yorsipp) is a specialist pension provider focused on bespoke selfinvested personal pensions (SIPPs) and Small Self-Administered Schemes (SSAS s), offering investment flexibility, diversification and a range of retirement solutions. Our SSAS business is operated under the trading name of Yorssas Limited. Yorsipp was originally formed as a trading company of the York Hadleigh Group on 21 March 2006 to allow development of the SIPP in line with the new A Day rules, and has been based in Glasgow since then. Yorsipp became independently owned in As an independent company, Yorsipp has no ties to any fund manager or insurance company. This means our pension scheme members can choose how their funds are invested from a range of investment opportunities. We recognise that everyone is different and we are able to tailor our service to meet the individual needs of our members. We are committed to providing a high level of service and technical support to assist with members ever changing needs. Our members are predominantly introduced to us from professional financial advisers. Yorsipp does not provide financial advice therefore we have no conflicts with the advisers we work with. Structure Yorsipp is authorised and regulated by the Financial Conduct Authority (FCA), register number The principal permission granted is for the establishment, operation and winding up of personal pension schemes. Yorsipp is authorised to control client money but may not hold such funds on its own account. The company is registered in England, registration number Its registered address is: c/o Calvert Dawson Ltd, 288 Oxford Road, Gomersal, Cleckheaton, West Yorkshire BD19 4PY. Yorsipp operates its SIPP under a Master Trust arrangement, with Yorsipp (Trustees) Limited as the sole Trustee of all pension schemes. All assets purchased by the SIPP are legally owned by Yorsipp (Trustees) Limited which is registered in England, registration number This structure streamlines the operational aspects of the scheme as it allows Yorsipp (Trustees) Limited to execute any legal documentation and payment authorisation at the direction of the member or professional adviser, without requiring counter signatures from the member.

2 Financial Strength Since Yorsipp is an independently owned company, we are not rated by any of the rating agencies. As an FCA regulated and authorised business, we must hold an appropriate level of capital to be allowed to continue to operate as a SIPP administrator. We currently exceed the capital adequacy requirements set by the FCA and we are pleased to confirm we shall comply with the new Capital Adequacy requirements applicable to all SIPP operators from September Yorsipp is a stable, profitable company which has grown each year since formation in Products Yorsipp offers two SIPP products; the Full SIPP and the Start Up SIPP: The Full SIPP The Yorsipp Full SIPP provides a robust and efficient framework for members to invest their pension funds in a range of investment opportunities including commercial property together with other standard investments such as fund platforms, discretionary funds managers and FCA authorised or recognised collective investment schemes. We also permit certain UK based nonstandard assets such as unlisted equities and EPUTs. The Start Up SIPP We recognise that not all members require the functionality that a full SIPP can provide, but still value investment choice. We therefore developed the Start Up SIPP which is a simplified, low cost product giving access to fund platforms, discretionary fund managers, execution only stockbroking accounts, trustee investment plans and FCA authorised or recognised collective investment schemes. The Start Up SIPP can be transferred to a Full SIPP should any member wish to purchase commercial property at a later date.

3 Service Standards We strive to provide a first class service at all times. We are proud of not only the quality of our service but also our normal turnaround times: Administration Task Processing new business applications Requesting transfers in Banking cheques Processing investment instructions Processing disinvestment instructions Providing a cash balance Providing a full valuation Completing benefit calculations and paying PCLS (if funds are available) Processing income change requests General enquiries Timescale same day same day same day same day if received by 12 noon next day if received after 12 noon same day if received by 12 noon next day if received after 12 noon same day 2 working days 2 working days 2 working days 3 working days The above timescales apply to standard instructions and requests only. Non-standard enquiries may take longer. Commercial Property The turnaround time for buying or selling commercial property varies with the specifics of the case and other parties involved e.g. the vendor, solicitor and surveyor. As a general guide, we can normally complete transactions within 6-10 weeks. We do not operate a panel of property partners you must use and welcome the use of your clients preferred connections. Banking Yorsipp uses the Bank of Scotland s Isite banking system, which means that we operate as a branch of the Bank of Scotland. This gives us access to state of the art banking facilities and the ability to obtain information and process banking at the touch of a button. The SIPP bank account is held with the Bank of Scotland although members are free to hold other authorised deposit accounts within their SIPP if they wish to do so.

4 Investment Opportunities Yorsipp believes it is important to allow our members access to a good range of investment opportunities. We therefore allow unrestricted access to standard investments via both the Full SIPP and the Start Up SIPP, including but not limited to: Fund Platforms Discretionary Fund Managers Execution Only Stockbroking Accounts Trustee Investment Plans FCA Authorised or Recognised Collective Investment Schemes, such as Unit Trusts, Investment Trusts and OEICs For members with a Full SIPP, we will also consider the following types of non-standard investments: UK based unquoted Shares/Equities UK based Exempt Property Unit Trusts (EPUT) All requests will be assessed on a case by case basis. We will carry out comprehensive due diligence to determine the structure of the opportunity, whether it exposes the member or Yorsipp to inappropriate risks and the likelihood of it falling within HMRC s definition of Taxable Property. We will not allow any investment which does not satisfy our due diligence process. Commercial Property Members with a Full SIPP can also use their pension funds to purchase commercial property, make an in-specie contribution of commercial property or transfer a property in-specie from an existing pension scheme. The property can be held solely by the SIPP or, subject to certain conditions being met, jointly with other pension schemes, individuals or businesses. Property can be purchased from or sold to a connected party, for example the member s business. We do not operate from panels, meaning the member is free to use a lender, solicitor and surveyor of their choice. We are specialists in the commercial property market and currently manage in excess of 300 properties. Yorsipp has unlimited access to a highly experienced pensions solicitor to assist with all legal matters, including those relating to property transactions. This makes the process as simple as possible for members and their advisers. Assets Under Administration Current assets under administration are in excess of 200million (excluding SSAS), which is split as follows: Cash 13% Standard Investments 50% Commercial Property 32% Non-standard 5%

5 Personnel In the increasingly complex SIPP market, it is important to ensure that you have the right team behind you to administer the scheme and oversee members assets. This requires a high level of technical support to ensure that HMRC and FCA rules are not breached. The Yorsipp team has a wealth of experience and knowledge and we all work very closely together to ensure a cohesive service. We do not have a call centre meaning you can speak directly to the member of staff you need. We operate on a flat management structure designed to enable a more bespoke service with easy access to decision makers. Director Kirsty Gallagher Administration Director Senior Staff Mark Canning Head of Business Development Liz Mcgeary Office Manager Jennifer Bolling Technical & Compliance Officer Business Development Stephen Gilligan Business Development Manager Gareth Jones Business Development Manager 13 years working with and managing SIPPs and SSAS in an administrative and technical role. Holds the CII s Financial Planning Certificate. 25 years financial services experience primarily in proposition design, technical and trustee/consultancy roles. Associate of the CII and holds the Financial Planning Certificate as well as Advanced Financial Planning (Pensions) certificate. Committee member of industry trade body AMPS. Regular contributor to trade press & industry forums. 10 years in the specialist SIPP and SSAS market, including property, technical, consultancy and business development. Holds the CII s Diploma in Financial Planning, CF9 (pensions simplification), FA2 (pensions administration) and PMI RPD (the pensions management institute retirement provision diploma) 18 years industry experience, including advisory support, relationship management, technical support and compliance consultancy. Holds the CII s Diploma in Regulated Financial Planning and IFS certificates in Customer Care, Complaints Handling, Supervision, Mortgage Advice, Equity Release and General Insurance. 17 years experience in financial services, including pension administration and business development with experience of property and the retirement market. Holds the CII s FPC papers 1 & 2 and the CII s FA2 paper. Currently working towards level 4 qualification. 14 years experience in financial services industry including working with a number of large insurers before joining a specialist SIPP and SSAS administrator in Vast amount of technical and legislative knowledge working in the self-invested pensions and at retirement field. Diploma qualified since 2005 having completed G10 and G60 amongst other examinations.

6 Property Team Rachael Haggerty Property Assistant Linda Ogilvie Property Administrator Natalie Connor (Maternity leave) Credit Controller Vacancies Property Administrator Legal Support Administration Team George Thomson SSAS & SIPP Administrator Lisa McAndrew SIPP Administrator Sarah Brown SIPP Administrator Chris Kidd SIPP Administrator Non-Operative staff Sharon Hooper Director & Financial Controller 8 years in the financial services industry, including property, complaints handling and technical support. 17 years experience in financial services. Holds the CII s Certificate in Financial Planning. 8 years industry experience in residential and commercial property. 18 years industry experience, including all aspects of pension, life and investment administration. Holds papers 1 & 2 of the CII s Financial Planning Certificate and a BEng in Electrical & Electronic Engineering. 11 years industry experience, including the administration and servicing of all types personal and occupational pension schemes. Holds part 1 of the PMI Diploma in Pensions Administration and a Modern Apprenticeship in Customer Service. New to the financial services industry after finishing university in Currently working towards the CII s CF1 qualifation. Holds a BA in Business Studies. 3 years industry experience working across personal pensions, occupational schemes and life policies. Holds the CII s FA1 paper (Life Office Administration), a BA in History and a MA in Medieval History. Heather Lamborn Director

7 Systems & Controls Treating Customers Fairly (TCF) TCF has been intrinsic to our business since it was formed in All staff members are aware of and understand the FCA s TCF requirements and how to apply this in practice. We regularly review our documentation to ensure it is accurate and that it is clear, fair and not misleading, without the use of industry jargon. Data Protection Yorsipp complies with the Data Protection Act 1998, which sets out how personal data can be stored and processed. We operate a private administration system which only our own staff and IT support personnel can access. Appropriate due diligence was carried out prior to appointing the IT support company and we monitor this on a regular basis. All paper files are kept in locked cabinets and we take a daily back-up of the data held on computer, which is then held securely offsite. Business Continuity In the event of a catastrophic failure to premises or systems, arrangements have been made to ensure the business can continue. Temporary alternative office space is available at nearby premises and back-up of data can be retrieved at short notice if required. Anti-Money Laundering Yorsipp is committed to helping tackle financial crime. We follow industry guidelines as set out by the Joint Money Laundering Steering Group and all members of staff receive regular training and information to ensure knowledge and understanding is maintained. We ensure that the identity of all pension scheme members is correctly verified before accepting any funds.

8 Fees Yorsipp operates an open, transparent, easy to understand fee structure; we have no hidden charges, no added extras and no time cost basis fees. This allows members and their advisers to know exactly how much they will be charged for all services within their SIPP. All fees are quoted inclusive of VAT. Our current charging structure is as follows: Full SIPP SIPP Set Up Annual Administration Transaction Charge 0 for the first 25, each thereafter Property Purchase 650* N/A Borrowing 315* N/A Annual Fee 580 N/A VAT Registration 100 per property N/A VAT Returns 100 annually per property N/A Refurbishment costs up to 100k 160 N/A Refurbishment costs more than 100k 315 N/A Sale 475* N/A Aborted Purchase 315* N/A In-Specie Contributions All Assets 250* plus normal additional costs Start Up SIPP Other Investments Purchase Unquoted Shares 315* N/A Scheme Borrowing 315* N/A Payment of Benefits Initial Benefit Crystallisation Additional Benefit Crystallisation Annual Income Fee Change of Income Annuity Purchase Transfer Out To Another Provider 300** 300 Additional Charges Bank Statement * Excludes associated costs such as legal, surveyor and lender fees ** Excludes sale of property fees, where applicable 0 for the first 10, each thereafter 250* plus normal additional costs