Paragraph 5

A Master Trust scheme and each scheme funder must meet the following requirements in relation to the scheme’s financing—

(a)

any assets held by the trustees or a scheme funder to meet the costs mentioned in section 8(3) of the Act must be—

(i)

of the classes and in the proportions set out in a Code,

(ii)

valued in accordance with any discounted rates set out in a Code, and

(iii)

available to be used when the relevant cost falls due;

(b)

the scheme’s trustees must have first call on the assets referred to in sub-paragraph (a);

(c)

any funding commitment made to the scheme by a scheme funder or an employer must be given in writing and duly executed by the party making the commitment;

(d)

where a scheme funder operates more than one Master Trust scheme, the funds allocated to each scheme must be separately identified to the Regulator;

(e)

where the assets include cash in a greater proportion than that set out in a Code, the Regulator may require trustees to hold a proportion of the assets set out in a Code in a separate account kept with a deposit taker as defined in section 49(8A) of the 1995 Act^f1 (other responsibilities of trustees, etc).

Annotations

Footnotes

f1: Section 49(8A) was inserted by S.I. 2001/3649 and amended by paragraph 82(2) of Schedule 18 to the Financial Services Act 2012 (c. 21) and S.I. 2007/3014.