# Pension Schemes Act 2026, Section 42: Regulations restricting creation of new non-scale default arrangements

Extent: E+W+S

(1) The appropriate authority may make regulations for the purpose of restricting the ability of the provider of a pension scheme to begin operating a non-scale default arrangement.
(2) The regulations may, in particular, make provision—
(a) prohibiting the provider of a pension scheme from beginning to operate a non-scale default arrangement unless the arrangement is approved by the appropriate regulator;
(b) about the criteria which the appropriate regulator must apply in deciding whether to approve a non-scale default arrangement;
(c) about the conditions which the appropriate regulator may or must attach to approval;
(d) about the ongoing requirements to which the provider of a pension scheme is to be subject in relation to a non-scale default arrangement approved under the regulations;
(e) where assets of a pension scheme are held subject to a non-scale default arrangement that is being operated in breach of the regulations, requiring the provider of the pension scheme in question to ensure that the assets are held subject to a different arrangement of a description specified in the regulations;
(f) conferring functions on the appropriate regulator, including functions involving the exercise of a discretion;
(g) for ensuring compliance with the regulations, including provision for the imposition of civil penalties not exceeding £100,000;
(h) for the making of a reference to the First-tier Tribunal or Upper Tribunal in respect of anything done under the regulations.
(3) Regulations under this section are subject to the affirmative procedure.

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Source: https://www.legislation.gov.uk/ukpga/2026/22/section/42 (the official version)
Page: https://openlegislation.uk/pension-schemes-act-2026/section-42
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.