Section 12A Investment capabilityF1

(1)

This section applies for the purposes of enabling the Pensions Regulator to decide whether it is satisfied that a Master Trust scheme (that has its main administration in the United Kingdom) has sufficient investment capability (see section 5(3)(f)).

(2)

In order to be satisfied that the Master Trust scheme has sufficient investment capability the Pensions Regulator must be satisfied—

(a)

that appropriate systems are in place for managing the investment strategy and monitoring outcomes,

(b)

that the scheme has appropriate systems for delivering effective governance, and

(c)

that there are appropriate strategies for recruiting and retaining expert staff.

(3)

In deciding whether it is satisfied about the matters mentioned in subsection (1), the Pensions Regulator must take account of any factors specified in subsection (2).

(4)

The Secretary of State may by regulations—

(a)

make provision about the meaning of terms used in subsection (2);

(b)

specify further factors that the Pensions Regulator must take into account in deciding whether it is satisfied about the matters mentioned in subsection (1).

(5)

The first regulations that are made under this section are subject to affirmative resolution procedure.

(6)

Any other regulations under this section are subject to negative resolution procedure.

Annotations

Textual amendments

F1: Ss. 12A, 12B inserted (29.4.2026 for specified purposes) by Pension Schemes Act 2026 (c. 22), ss. 41(8), 133(1)(4)(c)(ii)

Notes on Part 1

Modifications

C1: Pt. 1 excluded (1.10.2018) by The Occupational Pension Schemes (Master Trusts) Regulations2018 (S.I. 2018/1030), regs. 1(2), 27
C2: Pt. 1 excluded (1.10.2018) by The Occupational Pension Schemes (Master Trusts) Regulations2018 (S.I. 2018/1030), regs. 1(2), 26
C3: Pt. 1 modified (1.10.2018) by The Occupational Pension Schemes (Master Trusts) Regulations2018 (S.I. 2018/1030), regs. 1(2), 28(2)
C4: Pt. 1 modified (1.10.2018) by The Occupational Pension Schemes (Master Trusts) Regulations2018 (S.I. 2018/1030), regs. 1(2), 28(3)(4)(a)(b)
C5: Pt. 1: power to disapply conferred (11.2.2021 for specified purposes, 1.8.2022 in so far as not already in force) by Pension Schemes Act 2021 (c. 1), ss. 47(3)(b), 131(1)(3)(a); S.I. 2022/721, reg. 3(a)