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Administration details
Type of Plan
The Plan is a low cost ‘non-earmarked’ investment plan designed specifically for the trustees of registered pension schemes including:
• Self Invested Personal Pension (SIPP)
• Small Self Administered Scheme (SSAS)
• Final Salary Occupational Pension Scheme
Minimum investment amounts
The minimum single premium investment is £15,000 (i.e. the initial premium investment and any subsequent top-ups).
The regular premium investment minimums are: £1,250 monthly, £3,750 quarterly, £7,500 half yearly and £15,000 yearly.
Options
There are two different options available under the Plan, one of which must be selected at outset and cannot be changed.
• Option 1 (nil administration charge) - This is designed for trustees who primarily remunerate their financial advisers by paying a fee. The Plan has a 100% allocation rate for all single and regular premium investments. If trustees wish to use this option to remunerate their financial adviser then the allocation rate will be reduced by 1% for every 1% of initial commission.
• Option 2 (administration charge) - This is designed for trustees who are looking for higher allocation rates. The maximum allocation rate is 112.5%. The Plan has an administration charge which is deducted monthly from each investment over the first five years. The amount of the charge depends on the level of your investment, the allocation rate and also the initial commission. When the total investment amount exceeds £50,000 and £300,000 then all future premiums will have an additional 1.0% and 1.5%* allocation respectively.
* This figure includes an additional 0.5% which will only be added if the allocation rate above 100% plus the initial commission taken is greater than 4%. For example, an allocation rate of 102% plus initial commission of 3% gives a value of 5%; this is above the 4% threshold and the investment will qualify for the additional 0.5%. An allocation rate of 102% plus initial commission of 2% gives a value of 4%; this is not above the 4% threshold and therefore the investment will not qualify for the additional 0.5%.
Charges
• Initial charge - There is a one-off initial charge of £250 on new policies where the single premium investment is less than £50,000.
• Annual management charge - The Plan has an annual management charge (AMC) of 1% per year, which is deducted daily (by cancellation of units). The effect of the AMC is reduced by a rebate, which is credited to the Plan each month (on the monthly anniversary). The rebate is:
Months
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Level of rebate
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1-60
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0.60% per year
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61 onwards
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0.65% per year
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• Investment management charge - In addition to the annual management charge, which is specific to the Plan, there is an annual investment management charge, which is levied on the fund(s). Charges vary depending on the fund(s) chosen. We calculate this charge as a daily rate and make daily deductions from the units of the fund(s). Please see our Pension fund charges and risk ratings guide ref 8317 for more details.
The Personal example shows the current applicable charges and their effect on the investment(s). All management charges are subject to regular review by Canada Life. If we make any alterations then we will notify you in advance.
• Administration charge (option 2 only) - The Plan will have an administration charge which is deducted monthly from each investment over the first five years. The amount of the charge depends on the level of the investment, chosen allocation rate and initial commission paid. Varying the standard allocation rate or reducing the level of initial commission can reduce the administration charge.
Funds
The funds available are series 4 pension funds.
Funds per policy
Up to 10 funds can be chosen for each premium paid. If additional single or regular premium investments are subsequently made these may be applied to another set of different funds if required, again up to a maximum of 10.
Switches
We currently offer unlimited free fund switching. Any switch request will be effected on the next valuation date after receipt of request.
Phased investment
• Phased investment is free of charge and is used to automatically move money gradually from one group of funds to another over a defined period of time.
• Three options are available;
• Full option; move 100% of your nominated funds,
• Partial option; move a specific percentage of your nominated funds, or,
• Fixed amount option; move a specific monetary amount of your nominated funds.
• Frequency of phased investment can be monthly or every three months (quarterly).
• Timescale can be over a 6, 12, 24 or 36 month period.
• Once started, the frequency, timescale and funds chosen cannot be changed; to make any changes the existing phased investment must be cancelled and a new one must be requested.
• Up to nine nominated funds to switch out of and up to nine selected funds to switch into can be chosen, but the combined number of funds must not be more than 10.
Certain events will cause the phased investment service to automatically be stopped. Please see the policy provisions for details of these events.
New business requirements
Please ensure that the following items are completed before submitting to Canada Life:
• Cheque for all single premium investments. For new Plans, which start with both single and regular premium investments then the cheque, should be for the single and the initial regular premium investment.
• Personal example, which advises the funds, commission basis and whether the trustees have selected option 1 or 2.
• Corporate Money Laundering Certificate(s) (i.e. SSAS and Final Salary Occupational Pension Scheme) or a certified copy of the registered pension scheme certificate. Our Money Laundering Certificate ref 8205 can be found in the Library section of our site.
• A list of all authorised signatories (and sample signatures) for this investment on company letterhead paper, which notes the relevant HM Revenue & Customs registered pension scheme number.
Account cheque drawn from
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Action to be taken
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Building society cheque or banker’s draft
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Need to verify the source of the money. These are not acceptable unless they are submitted with supporting evidence such as certified copies of bank statements that clearly show the policyholder(s) has an account at the bank / building society as appropriate or a letter from the bank/building society confirming the withdrawal.
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Other accounts
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Money Laundering Certificate plus a certified copy of the bank statement that matches the name of the company the money is coming from where the policyholder(s) has an account or a signed letter from the bank/ building society explaining the source of the money.
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Service charter – your peace of mind
At Canada Life we are confident of our superior levels of service and to show our commitment to this we have published service standards and non performance penalties as part of our Service Charter for the Trustee Investment Plan. Please see our Investment service charter ref 8393 for more details.
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