PSI20.4.11 - Funding and Surpluses: Insured Schemes - Earmarked Policies - Earmarked Schemes Using Self Managed Funds

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

Some insured earmarked schemes have policies which are unit linked to an individual investment fund for the particular scheme concerned. The investments for each individual fund are normally selected by the employer/trustees (subject to the consent of the Life Office) but are made and held in the name of the Life Office. This sort of facility is known as a “Self Managed Fund” although you will find that different Life Offices call it by other titles such as “Private Portfolio Fund”, “Personalised Fund”, “Individual Fund”, “Segregated Fund”, “Exclusive Fund”, “Private Fund”, etc. Although schemes using a Self Managed Fund facility are not small self-administered schemes as such, we do, under our discretionary powers, apply certain small self-administered scheme requirements to them and these are explained more fully in the SSAS Guidance Notes. The procedures for dealing with schemes using the Self Managed Fund facility are set out in PSI22.4.16-17.

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