Sovereign delivers innovate pension solution to The ID Register fintech
Sovereign Trust (Channel Islands) is delighted to have been chosen to design, establish and manage a new employer-sponsored pension scheme for one of Guernsey’s leading fintech businesses, The ID Register.
The ID Register aims to become the central clearinghouse for KYC and investor onboarding as the financial services sector embraces the use of technology in this area. It has already grown to hold more than 25,000 investor profiles across over 270 funds worldwide.
Developed and headquartered in Guernsey, The ID Register was recently spun out of Apex group via a management buyout led by its founder, Tim Andrews. A dynamic and entrepreneurial business, the firm has worked closely with Sovereign to ensure that its employer-sponsored pension scheme reflects the real retirement savings needs of its team.
In particular, this required the scheme to be set up an employer-sponsored multi-member Retirement Annuity Trust Scheme (RATS) rather than an occupational pension scheme in order to enable members to borrow against some of their pension pot to fund other investments, such as mortgage deposits. This is permitted under the rules governing Guernsey’s RATS by way of a loan to the member.
Senior team members are also recognised to have the necessary experience to invest more widely into alternative investments, such as private equity funds. A really innovative feature of this employer-sponsored pension scheme is that senior team members are able to diversify their investments on an execution-only, member-directed basis in search of higher returns beyond the public markets.
Sovereign 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 them and providing support and value to their staff was the primary objective.”
ID Register founder Tim Andrews said: “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 have 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 (sgillease@sovereigngroup.com) to discuss the various options that Sovereign can provide, including more bespoke or tailored arrangements to suit client needs where required.
