SIPP SSAS update 29 th November 2016 Sheffield

Agenda • About us • SIPP market – post capital adequacy • Due diligence

About us • Established in 1993 • Privately owned • SIPP & SSAS Administrators/Trustee • No conflicts of interest • Accountable & personal service • £ 1. 8 billion AUA / 4400 Schemes Copyright 2014 experienceandexpertise

SIPP Market • 141 SIPP providers have wrote new business in last 5 years • January 2015 – 99 providers wrote new business in last quarter • June 2015 – 75 providers wrote new business in last quarter • 1 st September 2016 new Cap Ad regime • End of 2017 – 30 – 40 active SIPP providers • Unsustainable SIPP firms = further consolidation Copyright 2014 experienceandexpertise

2015 Rathbones SSAS & SIPP to Dentons and Barnett Waddingham; Lindley Group to Mattioli Woods; Parmenion to AAM; Hartley SSAS and Lifetime SIPP to Wilton Group; Towry Law to James Hay Oval SSAS to Talbot & Muir 2016 Suffolk Life (from L&G) to Curtis Banks Stadia Trustees to Mattioli Woods Avalon to Embark EPML to Suffolk Life Rowanmoor to Embark MC Trustees to Mattioli Woods Wensley Mackay to Praemium Axa Wealth to Phoenix Brooklands to Heritage TD SIPP to Interactive Investor L&C to STM Attivo to Talbot & Muir Copyright 2014 experienceandexpertise

Due diligence for SIPP providers • Cap Ad position at 1 st September – Tier 1 / Tier 2? • AUA / numbers of schemes • Turnover / Profit • Dependence on kickback from deposit accounts • Make up of SIPP book • Exposure to non standard / what fee increases do you envisage Copyright 2014 experienceandexpertise

SIPP Market • Polarised between vertically integrated firms & pure administrators / professional trustees • Critical Mass / scalability • Increasing regulation / cost • Falling margins – trend to reverse Copyright 2014 experienceandexpertise

Rise of SSAS • Ever increasing need for professional involvement – Complex pension rules and multiple layers of legislation. • “Fit and Proper Person” rules • Increased interest in Loanbacks • Pension estate planning – SSAS preferred vehicle • SSAS more popular for syndicated property purchase and family business than SIPPs Copyright 2014 experienceandexpertise

SSAS Loanbacks • • • 50% of net scheme assets 1% over 6 main clearing banks (1. 25%) No maximum interest rate 5 years Secured • Low cost borrowing for a business or • 7 – 8% - High return for pension scheme and significant reduction in corporation tax for a business • Useful where have clients hit by taper or MPAA Copyright 2014 experienceandexpertise

SSAS for property purchase • • • Lower costs than SIPPs for more than 2 members One piece of conveyancing – simpler and lower costs than SIPPs One bank loan – simpler and lower costs Liquidity at retirement Opportunity for succession without transaction costs – no stamp duty or conveyance as younger members of scheme take over property ownership • Leaves door open for loanbacks Copyright 2014 experienceandexpertise

Property – SIPP & SSAS • • • Grain stores & duck farms Pubs & Hotels Care homes Zoos Hospitals Prisons Bluebell Woods & Orchards Fishing lakes Golf course Railway lines Football stadiums Land – to develop or not ! Copyright 2014 experienceandexpertise

SSAS Review Service • Scheme documentation review • Investment compliance check • Review of

Talbot and Muir • Talbot and Muir Limited provides administration to Self Administered Pension Schemes • Talbot and Muir SIPP LLP provides administration to Self Invested Personal Pensions. • T M Trustees Ltd provides independent trustee service. • Whilst we provide technical information, we are not authorised to provide any form of financial or investment advice. • We try to ensure that the information provided is correct, but we do not give any express or implied warranty as to its accuracy. The information contained in this presentation does not constitute financial or other professional advice and is based on our interpretation of the relevant HMRC guidelines, which are subject to change. We do not accept any liability for error or omission. • Talbot & Muir is the trading name for Talbot and Muir Limited (company number 02869547). T M Trustees Ltd (a limited company registered in England Wales under company number 03094287) whose registered office is situated at 22 -26 Clarendon Street, Nottingham NG 1 5 HQ • Talbot and Muir SIPP LLP (company number OC 306490), is registered in England, registered address 22 Clarendon Street, Nottingham, NG 1 5 HQ and is authorised and regulated by the Financial Conduct Authority Copyright 2014 experienceandexpertise