The Pensions Advisory Service (TPAS) chief executive Michelle Cracknell has said the SSAS pension market is ‘rife’ with scams.
Speaking today at the Pensions and Benefits UK conference, Cracknell (pictured) said SSAS pensions are often targets for unregulated investments.
‘The SSAS market is where the pension scams are really rife,’ she said. ‘They are effectively unregulated products.’
Cracknell said regulations about what can be invested in a SASS meant they were open to abuse by fraudsters.
‘If an adviser or an unregulated person has recommended an investment that is legitimate for that SSAS and is a permitted SSAS investment, that doesn’t mean it’s a good investment and it doesn’t mean it’s not a fraudulent investment,’ she said.
According to Cracknell, investors needed to look at more than just what was legally permissible in the SSAS when they made an investment.
‘If you want to go and put your SSAS money in a high risk investment and the trustee will say that is okay from a legal perspective, they are not looking after whether that’s right for you and that is a big misunderstanding,’ she said.