City Trustees - part of Mattioli Woods



News and Media

04 February 2015

Pensions Perspective: Do we need two solicitors if a pension scheme is purchasing property from the company?

When purchasing property from an unconnected party either corporately, or via a pension scheme or personally, it is general practice to have two separate solicitors to ensure that the best interests of each client are met. However, when the parties are connected, how many solicitors do you really need? This can often be down to both the provider and the solicitor.

When looking at purchases to and from the pension scheme from a connected party some providers, such as City Trustees, will be happy for one solicitor to deal on behalf of both parties. This also includes in specie transfers in cases where a SIPP may be transferred between providers.

Having one solicitor dealing with connected party transactions can reduce the amount of time spent on conversations between solicitors. However, there will be some circumstances where a solicitor may advise that they cannot act impartially on behalf of both parties. In addition, some providers do insist on separate legal advice, or that a solicitor from their own 'panel' be used.

Panel solicitors or 'trusted legal advisers' can be an advantage, as they tend to understand the workings and documentation of the pension scheme structure of the relevant provider, thus potentially reducing administration time.

Before you start a connected transaction, it is worth checking your pension provider's requirements with regards to legal counsel and whether they have a panel (and whether this is compulsory or just an option), as well as the position of your preferred solicitor.

 

Pension Perspective is a weekly feature from City Trustees, covering questions that our experienced sales and technical teams have received from advisers. The Q&A covers a range of subjects including property, pension contributions, protection, auto-enrolment and more.

City Trustees operates a free technical helpline for advisers for support with pension challenges. Tel: 0116 240 8731 or email: technicalhelp@citytrustees.co.uk.

 

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