Regulation 6 Amendment of the Occupational Pension Schemes (Investment) Regulations 1996

after regulation 1 (citation, commencement and interpretation) insert—

“Extension of the meaning of “employer”

1A

In these Regulations, except where the context otherwise requires, and for the purposes of sections 35 and 40 of the 1995 Act, “employer” includes, in relation to a scheme in respect of which there are no active members, the person who was the employer immediately before the occurrence of the event after which the scheme ceased to have any such members.”;

for paragraph (8) of regulation 6 (investments to which restrictions do not apply) substitute—

“(8)

This regulation applies to a loan to the employer or a company associated with the employer if—

(a)

the scheme provides benefits for directors of a company which is the employer, or such directors and others;

(b)

there is a policy of insurance taken out under the scheme which is specifically allocated to the provision of benefits under the scheme and the directors' interests under which are used as security for the loan;

(c)

the policy concerned is effected with an insurance company such as is mentioned in paragraph (2)(b)(i), (ii) or (iii);

(d)

Inland Revenue requirements concerning the loan have been satisfied; and

(e)

the directors agreeing to their interests under the policy concerned being used as security for the loan, have so agreed in writing.”;

in paragraph (2)(d) of regulation 7 (transitional provisions), after “employer-related loans” insert “which do not contravene the 1992 Regulations and”.