Section 29 Authorisation of consolidator schemes etc by the Pensions RegulatorI1

England, Wales and Scotland

(1)

Small pots regulations must permit the trustees or managers of an eligible Master Trust scheme to apply to the Pensions Regulator for authorisation of—

(a)

the scheme, or

(b)

such arrangements under the scheme as are specified in the application.

(2)

Small pots regulations must require the Pensions Regulator to grant an application for authorisation where—

(a)

the application is made in accordance with regulations made by virtue of subsection (1), and

(b)

prescribed conditions are met.

(3)

Small pots regulations may permit or require the Pensions Regulator, where prescribed conditions are, or cease to be, met in relation to a consolidator scheme or arrangement—

(a)

to require the trustees or managers to take prescribed steps;

(b)

to prohibit a destination proposer, in prescribed cases or in all cases, from specifying the scheme or arrangement in proposals under section 23 (1);

(c)

to withdraw authorisation.

(4)

The conditions that may be prescribed undersubsection (2)(b) or (3) include conditions relating to—

(a)

the terms of the scheme,

(b)

the value of sums and assets held by the scheme for the purpose of providing money purchase benefits,

(c)

the fees charged by the scheme, or

(d)

a VFM rating assigned to the scheme or any arrangement under the scheme,

and include conditions that involve the exercise of a discretion by the Pensions Regulator.

(5)

Small pots regulations may permit or require the Pensions Regulator, where it withdraws authorisation, to require the trustees or managers of the scheme in question to take prescribed steps in relation to relevant pension pots.

(6)

The steps that may be required to be taken by virtue of subsection (5) include steps to limit the fees that may be charged.

(7)

For the purposes of subsection (5) a pension pot is “relevant” if—

(a)

any of the sums or assets comprising the pot, or any sums or assets from which any of the sums or assets comprising the pot derive, were at any time comprised in a small dormant pension pot in respect of which a transfer notice was sent under small pots regulations, and

(b)

no response to that notice was received under section 24 (3)(d)(ii).

(8)

For the purposes of this Chapter a Master Trust scheme is “eligible” if it is authorised under section 5 of the Pension Schemes Act 2017 (authorisation of Master Trust schemes).

Annotations

Commencement

I1: S. 29 in force at Royal Assent, see s. 133(4)(b)