WiseAlpha, a start-up investment platform which offers retail investors access to fractions of corporate bonds, has launched its own Small, Self-administered Pension Scheme (SSAS) service.
Readers interested in trading fractional bonds can open a WiseAlpha SSAS by downloading and completing an application form off the firm’s website.
A SSAS is a pension trust set up by a limited company or a partnership, usually set up for directors and senior employees or their relations.
Similar to a Self-invested Personal Pension (SIPP), when they retire SSAS members are usually able to take up to 25% of their pot as a tax-free lump sum, with the remainder used to provide an income.
WiseAlpha has a tiered structure for fees, with four tiers of fees between 1% and 0.25% a year on any money invested through its platform, depending on the amount invested through the platform.
It also charges a 0.25% early sales fee for selling a bond prior to it reaching maturity. UK Government bonds (Gilts) are charged at a flat annual fee of 0.2%, however.
The custody, and administration of all investments, including the platform’s SSAS and SIPP, is included in the service fee. It is only paid at the time coupon payments are received.
The launch of the WiseAlpha SSAS comes after the firm recently raced past a crowdfunding target of £350,000 on Crowdcube.
The Crowdcube raise was part of a wider funding round by the company, for which the Company secured a £245,000 in advance subscription agreements (ASAs).
In addition to its pension services, the company also offers an Innovative Finance Individual Savings Account (IFISA), which allows investors to earn tax-free returns on up to £20,000 invested each year, as with standard ISAs.
The firm also offers technology licensing services for banks and institutions.
The Good Money Guide interviewed the firm’s founder and CEO Rezaah Ahmad earlier this year. You can read the write up in full through this link.W
Robin has more than six years of experience as a financial journalist, most of which were spent at Citywire, and covers the latest developments in the investing, trading and currency transfer space. Outside of work, he enjoys reading literature and philosophy and playing the piano.
You can contact Robin at robin@goodmoneyguide.com
