Depending on the type of provider, the scheme
will have at least a provider, administrator and, under trust-based
schemes, a trustee. These roles may be filled by one company
or a combination of companies and individuals.
The scheme administrator carries out the day-to-day running of
the SIPP, for collecting and recording your contributions to the
SIPP. An official administrator (which can be the same
company) also reports to HMRC, for example when
claiming tax relief on your contributions to the SIPP.
The trustee owns the assets in the SIPP; purchases and sales are
made in the trustee's name, so that these transactions enjoy the
tax-protection of the SIPP.
Actual investment decisions can be made by the policyholder or
by an investment manager.
Q & A's
Some providers restrict investments to a range of pre-selected
funds, often just their own. These arrangements are called 'closed
architecture'. A scheme with 'open architecture' offers a wider
investment choice.
