Section 58 Corresponding provision in relation to FCA-regulated schemesI1

In the Financial Services and Markets Act 2000, before section 137FC insert—

“FCA general rules: guided retirement

137FBD

(1)

The FCA must make general rules for the purpose of ensuring that default or qualifying pension benefit solutions are made available to members of relevant pension schemes.

(2)

In determining what provision to include in the rules, the FCA—

(a)

must have regard to provision made by, and any provision made under, Chapter 6 of Part 2 of the Pension Schemes Act 2026 (guided retirement: schemes regulated by the Pensions Regulator), and

(b)

must aim to ensure, so far as possible, that the outcomes achieved by the rules in relation to relevant pension schemes correspond to those achieved by that Chapter, and any regulations made under it, in relation to pension schemes to which that Chapter applies.

(3)

In this section—

• “default or qualifying pension benefit solution” means a pension benefit solution which—

  1. (a)

     is designed for delivering money purchase benefits under a pension scheme to some or all of the members of the scheme,

  2. (b)

     is designed to provide a regular income for the members concerned in their retirement (whether or not together with other benefits), and

  3. (c)

     meets any other prescribed conditions;

• “FCA-regulated pension scheme” means a pension scheme whose operation—

  1. (a)

     is a regulated activity, and

  2. (b)

     is carried on in the United Kingdom by an authorised person;

• “money purchase benefits” has the same meaning as in the Pension Schemes Act 1993 (see section 181 of that Act);

• “pension benefit solution”, in relation to a pension scheme, means a contractual or other arrangement for making pension payments in respect of members’ accrued rights;

• “pension scheme” has the meaning given in section 1(5) of the Pension Schemes Act 1993;

• “relevant pension scheme” means an FCA-regulated pension scheme that is—

  1. (a)

     an auto-enrolment scheme,

  2. (b)

     a workplace personal pension scheme that is not an auto-enrolment scheme, or

  3. (c)

     a pension scheme of a prescribed description,

  and for that purpose “auto-enrolment scheme” has the meaning given in section 117A(3) and “workplace personal pension scheme” has the meaning given in section 117A(5).”