Family Pension Trust
Borrowing to invest
The scheme may borrow money from lenders to purchase particular assets, or to otherwise benefit the Family Pension Trust in the best interests of the members. This could include borrowing to provide a member's benefit that has become payable. The maximum the Family Pension Trust can borrow is 50% of the net fund value of all scheme assets at the date of the loan. Borrowing under individual arrangements and common investment funds is also limited to 50% and total borrowing must not exceed the Family Pension Trust maximum. Prior agreement of the members whose funds are included in the borrowing calculation must be obtained.
Rowanmoor Trustees Limited must be party to the loan documentation.
We do not stipulate or limit the range of potential lenders. However, Rowanmoor Pensions has agreed a streamlined lending facility with The Royal Bank of Scotland plc specifically for the purchase of commercial property. The streamlined administration system, which includes pre-agreed legal documentation, speeds up the process. If borrowing is to be with any other party, all the documentation needs to be individually agreed by Rowanmoor Trustees Limited before the borrowing may proceed.