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Section 1 Asset pool companiesI1

England, Wales and Scotland

(1)

Scheme regulations relating to a scheme for local government workers which has pension funds may make provision about, or in connection with, asset pool companies and participation in asset pool companies by the scheme managers.

(2)

The provision which may be made under subsection (1) includes provision—

(a)

imposing requirements or prohibitions on scheme managers;

(b)

enabling the responsible authority, in prescribed circumstances, to give a direction to a scheme manager requiring the manager—

(i)

to participate in an asset pool company specified in the direction, or

(ii)

to cease to participate in an asset pool company so specified;

(c)

enabling the responsible authority, in prescribed circumstances, to give a direction to an asset pool company specified in the direction, or to all or any of its participating scheme managers, requiring the company or scheme managers concerned—

(i)

to take any steps specified in the direction with a view to enabling or securing compliance by a scheme manager with a direction requiring it to participate in, or to cease to participate in, the company (see paragraph (b)), and

(ii)

to take any other steps necessary to enable or secure compliance with such a direction;

(d)

imposing requirements or prohibitions on asset pool companies;

(e)

enabling or requiring the responsible authority to issue guidance to asset pool companies;

(f)

enabling the responsible authority, in prescribed circumstances, to give a direction to an asset pool company—

(i)

requiring it to comply with guidance issued as mentioned in paragraph (e) (where the responsible authority is satisfied that it is failing, or has failed, to do so without good reason);

(ii)

as to the manner in which it is to carry out any specified investment management activities.

(3)

In subsection (2)(f)(i) and (ii)—

  • “specified” means specified in the direction;

  • “investment management activities” means activities involved in or connected with the management of funds and other assets.

(4)

If provision is made under subsection (2)(b) or (c), the scheme regulations must require the responsible authority to consult the following persons before a direction is given in respect of the participation of a scheme manager in an asset pool company, namely—

(a)

the scheme manager;

(b)

the asset pool company;

(c)

the scheme managers participating in the asset pool company;

(d)

any other person the responsible authority considers it appropriate to consult.

(5)

If provision is made under subsection (2)(f) for the giving of directions to an asset pool company, the scheme regulations must require the responsible authority to consult the following persons before a direction is given, namely—

(a)

the asset pool company;

(b)

the scheme managers participating in the asset pool company;

(c)

the Financial Conduct Authority;

(d)

any other person the responsible authority considers it appropriate to consult.

(6)

Scheme regulations making provision mentioned in subsection (2)(a) may (among other things)—

(a)

require a scheme manager to participate in an asset pool company with a view to that company managing the funds and other assets of the scheme for which the scheme manager is responsible;

(b)

prohibit a scheme manager from participating in more than one asset pool company at the same time (subject to any transitional arrangements permitted by the regulations where a scheme manager participating in one company decides to participate instead in another company);

(c)

require the scheme managers for the time being participating in an asset pool company to take steps to secure the grant of FCA authorisation to the company for carrying out prescribed activities.

(7)

Scheme regulations making provision mentioned in subsection (2)(d) may (among other things) require an asset pool company to take steps to secure the grant of FCA authorisation to the company for carrying out prescribed activities.

(8)

In subsections (6)(c) and (7) —

  • “activities” means activities which—

    1. (a)

      are activities of a kind that an asset pool company could carry out, and

    2. (b)

      require FCA authorisation;

  • “FCA authorisation” means authorisation by the Financial Conduct Authority under the Financial Services and Markets Act 2000.

(9)

For the purposes of this Chapter—

(a)

“asset pool company” means a company limited by shares and registered in the United Kingdom which is established for purposes consisting of or including—

(i)

managing funds or other assets for which its participating scheme managers are responsible, and

(ii)

making and managing investments on behalf of those scheme managers (whether directly or through one or more collective investment vehicles),

and whose shares are all held by scheme managers only or by another company limited by shares and registered in the United Kingdom whose shares are all held by scheme managers only, and

(b)

a scheme manager participates in an asset pool company by—

(i)

being a shareholder of the company,

(ii)

being a shareholder in another company which is the only shareholder of the company, or

(iii)

contracting with the company for it to manage the funds and other assets for which the scheme manager is responsible.

Annotations

Commencement

I1

S. 1 in force at Royal Assent for specified purposes, see s. 133(1)