Sovereign delivers an innovate pension solution for fintech firm The ID Register

Sovereign Trust (Channel Islands) is delighted to have been selected by fintech firm The ID Register (Guernsey) to design, establish and manage its new employer-sponsored pension scheme.

Headquartered in Guernsey, The ID Register aims to become the central global clearinghouse for KYC (Know Your Customer) verification and investor onboarding and has grown to over 25,000 investor profiles across over 270 funds around the world.

KYC is the mandatory process of identifying and verifying the identity of a client when opening an account and periodically over time. It is a significant preventive element in the fight against financial crime and money laundering and is embedded in international regulations.

The ID Register was recently spun out of Apex group in a management buyout led by its founder, Tim Andrews. A dynamic and entrepreneurial business, it is working closely with Sovereign to ensure that its employer-sponsored pension scheme reflects the real retirement savings needs of its employees in today’s uncertain world.

In particular, the scheme ensures that:

• The ID Register team members are able to borrow against a portion of their pension pot in order to fund other investments, such as mortgage deposits. This is permitted under the rules governing Retirement Annuity Trust Schemes (RATS) in Guernsey by way of a loan to the member. This facility required The ID Register to set up an employer-sponsored multi-member RATS, as opposed to an occupational pension scheme.
• Senior team members are recognised as having the necessary experience to invest more widely into alternative investments, such as private equity funds. A really innovative feature of this scheme, it enables senior team members to diversify their investments on an execution only, member-directed basis in search of higher returns beyond the public markets.

Sovereign Trust Director Sean Gillease said: “it has been a real pleasure working with Tim and his team to create something that offers real value to their employees. It was very clear that this was not simply a box ticking exercise for The ID Register, and providing support and value to their staff was the primary objective.”

The ID Register founder Tim Andrews added: “We searched widely in order to find a provider who would work with us to offer a pension scheme that really reflects the needs of our people at a competitive cost. Sovereign has demonstrated a can-do approach that has resulted in a truly supportive benefit that balances retirement saving with the need to climb onto the first rung of the housing ladder and, for those of us who are a little older, the flexibility to invest beyond the public markets. This collaboration is a great example of Guernsey innovation with a global opportunity.”

If you are looking to set up a pension scheme, whether for yourself or for your company, please contact Sean Gillease below to discuss the various options that Sovereign Trust can provide, including more bespoke or tailored arrangements to suit client needs, where required.