# The Occupational Pension Schemes (Investment of Scheme’s Resources) Regulations 1992, Note: Explanatory note


(This note is not part of the Regulations)
These Regulations restrict the proportion of the resources of an occupational pension scheme that may be invested in employer-related investments.
Regulation 1 defines “member”, “pensionable service” and “scheme” for the purposes of regulations 2 to 5.
Regulation 2 provides that the restriction on investment in employer-related investments in regulation 3 shall, subject to certain exceptions, apply to those occupational pension schemes which are—
(a) approved by the Inland Revenue or subject to an application for such approval; or
(b) exempt from tax by reason of being a superannuation fund approved before 6th April 1980.
Regulation 3 provides that the proportion of a scheme’s resources that may at any time be invested in employer-related investments must not exceed 5 per cent.
By regulation 4 that limit does not apply to employer-related investments—
(a) in bank or building society accounts;
(b) of additional voluntary contributions provided that the member has agreed in writing; and
(c) in policies of insurance issued in respect of persons who have agreed in writing.
Regulation 5 provides that any employer-related investments which exceed the limit prescribed by regulation 3 on 9th March 1992 may, subject to certain time limits, be retained.
Regulation 6 requires trustees of schemes to include in their annual report information on any employer-related investments of the scheme.
The Report of the Occupational Pensions Board on the draft of these Regulations which was referred to them, together with a statement by the Secretary of State showing that these Regulations give effect to the Board’s recommendations, is contained in Command Paper No. 1805, published by Her Majesty’s Stationery Office.

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Source: https://www.legislation.gov.uk/uksi/1992/246/note (the official version)
Page: https://openlegislation.uk/occupational-pension-schemes-investment-of-schemes-resources-regulations-1992/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.