Regulation 3 The fraud compensation levyC1

(1)

For the purposes of meeting expenditure payable out of the Fraud Compensation Fund, trustees or managers of schemes shall be liable to pay a fraud compensation levy in respect of each financial year.

(2)

One fraud compensation levy only shall be payable in respect of each financial year.

(3)

The fraud compensation levy payable shall—

(a)

be payable by reference to the total number of members of the scheme on the reference day, and

F1(b)

not exceed—

(i)

in the case of a scheme which is authorised by the Regulator under section 5 of the Pension Schemes Act 2017 (decision on application), 65 pence per member, and

(ii)

in any other case, £1.80 per member.

(4)

Where a scheme becomes a registrable scheme during a financial year, any fraud compensation levy payable shall be calculated to reflect the proportion of that year during which the scheme is a registrable scheme.

(5)

Where during a financial year a scheme ceases to be a registrable scheme any fraud compensation levy payable is payable in full for that year.

Annotations

Textual amendments

F1: Reg. 3(3)(b) substituted (1.4.2022) by The Occupational Pension Schemes (Fraud Compensation Levy) (Amendment) Regulations 2022 (S.I. 2022/259), regs. 1, 3

Modifications

C1: Reg. 3 modified (1.10.2018) by The Occupational Pension Schemes (Master Trusts) Regulations2018 (S.I. 2018/1030), regs. 1(2), 23(1)(2)(c)