Cambridge launches a bank
12 June 2012
In association with University of Cambridge's college, Trinity Hall, the Cambridgeshire Local Government Pension Fund has launched a private bank offering loans to Self Invested Pension Plan (Sipp)s and Small Self Adminsitered Schemes (SSAS)s, a type of occupational trust-based pension, according to website, Money Marketing.
The website, in December, revealed Sipp and SSAS banking firm, Pensions Bank was talking to parties over a possible takeover deal.
Cambridge & Counties Bank has been created now, following the acquisition of Pensions Bank after receiving FSA approval. Deposits held earlier in Pensions Bank now stand transferred to the new company.
The bank would extend loans to Sipps and SSASs secured against commercial property with terms of around 20 years.
Loans will be to a maximum 50 per cent of the pre-borrowing fund value, and the bank would also offer mainstream commercial mortgages to business owners and a range of retail and non-retail deposit accounts.
The Cambridgeshire Local Government Pension Fund and Trinity Hall, have each taken a 50-per cent stake in the new venture.