Section 28H Risk noticesF1

(1)

The Regulatory Authority (“the Authority”) may give a risk notice to the trustees or managers of a relevant Master Trust if the Authority considers that—

(a)

there is an issue of concern in relation to the relevant Master Trust, and

(b)

the relevant Master Trust will, or is likely to, cease to meet the conditions for approval under section 28A or 28C if the issue is not resolved.

(2)

A “risk notice” is a notice that requires the trustees or managers of a relevant Master Trust to submit to the Authority a plan (a “resolution plan”) setting out proposals for resolving the issue of concern.

(3)

A risk notice must—

(a)

identify the issue of concern;

(b)

specify the date by which the resolution plan is to be submitted.

(4)

If the Authority is not satisfied that the proposals in a resolution plan are likely to be adequate to resolve the issue of concern, the Authority may give a further notice to the trustees or managers requiring them to submit a revised plan by a date specified in the notice.

(5)

The trustees or managers must implement the proposals in a resolution plan if the Authority—

(a)

is satisfied that the proposals are likely to be adequate to resolve the issue of concern, and

(b)

notifies the trustees or managers accordingly.

(6)

The Authority may direct the trustees or managers to comply with the requirement imposed by subsection (5).

(7)

Where the trustees or managers are required by subsection (5) to implement the proposals in a resolution plan, they must—

(a)

submit to the Authority, before the end of a period specified in regulations, a report setting out what progress they are making in implementing the proposals (a “progress report”);

(b)

submit further progress reports to the Authority at intervals specified by the Authority.

(8)

Resolution plans and progress reports must be provided in the manner and form specified by the Authority.

(9)

A reference to a resolution plan in subsections (4) to (8) includes a reference to a resolution plan as revised under subsection (4).

(10)

Regulations may—

(a)

specify information that a risk notice must contain;

(b)

provide that the date referred to in subsection (3)(b) or (4) must fall before the end of a period specified in the regulations.

(11)

Section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee or manager of a relevant Master Trust who fails to comply with—

(a)

a notice under subsection (1) or (4),

(b)

a direction under subsection (6), or

(c)

a requirement imposed by subsection (7).

Annotations

Textual amendments

F1: Ss. 28A-28L inserted (29.4.2026 for specified purposes) by Pension Schemes Act 2026 (c. 22), ss. 40(12), 133(1)(4)(c)

Notes on Part 1

Modifications

C1: Pt. 1 applied (with modifications) (temp. 1.7.2012 to 30.6.2020) by The Automatic Enrolment (Offshore Employment) Order 2012 (S.I. 2012/1388), art. 2 (with saving in art. 5)