Regulation 2 Amendment of the Pensions Act 2004

Section 249A^f1 of the Act (requirement for internal controls) is amended as follows.

In the heading, for “internal controls” substitute “an effective system of governance”.

For subsection (1) substitute—

“(1)

The trustees or managers of an occupational pension scheme must establish and operate an effective system of governance including internal controls.

(1A)

The system of governance must be proportionate to the size, nature, scale and complexity of the activities of the occupational pension scheme.”.

In subsection (2), for “internal controls” substitute “an effective system of governance including internal controls”.

In subsection (3), after paragraph (d) insert—

“(e)

an authorised Master Trust scheme within the meaning of Part 1 of the Pension Schemes Act 2017^f2.”.