Regulation 3 Exemptions from the professional advisers requirements

(1)

Section 47(1)(a) of the 1995 Act (for every occupational pension scheme there shall be an individual, or a firm, appointed by the trustees or managers as auditor) does not apply to—

F1(a)

a scheme which is—

(i)

provided for, or by, or under an enactment (including a local Act); F2and

(ii)

guaranteed by a Minister of the Crown or other public authority.

F3(b)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F4(c)

an occupational pension scheme which provides relevant benefits and which on or after 6th April 2006 is not a registered scheme;

F5(d)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(e)

unfunded occupational pension schemes;

(f)

occupational pension schemes with less than 2 members;

F6(g)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F7(h)

a scheme—

(i)

with fewer than 12 members where all the members are trustees of the scheme and either—

(aa)

the provisions of the scheme provide that all decisions which fall to be made by the trustees are made by unanimous agreement by the trustees who are members of the scheme; or

(bb)

the scheme has a trustee who is independent in relation to the scheme for the purposes of section 23 of the 1995 Act (power to appoint independent trustees), and is registered in the register maintained by the Authority in accordance with regulations made under subsection (4) of that section; or

(ii)

with fewer than 12 members where all the members are directors of a company which is the sole trustee of the scheme, and either—

(aa)

the provisions of the scheme provide that any decisions made by the company in its capacity as trustee are made by the unanimous agreement of all the directors who are members of the scheme; or

(bb)

one of the directors of the company is independent in relation to the scheme for the purposes of section 23 of the 1995 Act, and is registered in the register maintained by the Authority in accordance with regulations made under subsection (4) of that section;

F8(hh)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(i)

occupational pension schemes with a superannuation fund such as is mentioned in section 615(6) of the Taxes Act;

F9(j)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F10(k)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F11(l)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F12(m)

the AWE Pension Scheme established by a deed made on 29th March 1993; and

F13(n)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F14(o)

the Babcock Naval Services Pension Scheme, established by a deed made on 29th August 2002.

F15(2)

Section 47(1)(b) of the 1995 Act (for every occupational pension scheme there shall be an individual appointed by the trustees or managers as actuary) does not apply to—

C1 C2(a)

money purchase schemes F16other than to the extent to which they provide collective money purchase benefits;

(b)

schemes mentioned in—

(i)

paragraph (1)(a), F17 (e) to (f), F18 ..., (m) and (o); or

(ii)

paragraph (1)(c) or (i) where these schemes have fewer than 100 members.

F19(2A)

In paragraph (2), “collective money purchase benefits” are benefits which are collective money purchase benefits for the purposes of Part 1 of the Pension Schemes Act 2021.

C3(3)

Section 47(2) of the 1995 Act (for every occupational pension scheme the assets of which consist of or include investments F20... there shall be an individual or a firm appointed by or on behalf of the trustees or managers as fund manager) does not apply to—

F21(a)

relevant schemes of a kind mentioned in paragraph (4) of regulation 4 of the Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business) Order 2001 (Managing investments: occupational pension schemes);

(b)

wholly insured schemes; and

C4(c)

schemes mentioned in F22paragraph (1)(a) to (f) and (i).

(4)

Section 47(3) of the 1995 Act (legal advisers, fund managers, and persons exercising prescribed functions in relation to the scheme to be appointed by the trustees or managers) does not apply to schemes mentioned in paragraph (1)(a) to (f) and (i).

C5( F235)

Subject to paragraph (6), where the trustees or managers of a scheme appoint a custodian on terms—

(a)

which allow the custodian to use the services of an appointed person; and

(b)

which—

(i)

in the case of a custodian appointed before the relevant date, set out in writing, or

(ii)

in the case of a custodian appointed on or after the relevant date, specify that, before taking up the appointment the custodian must disclose in writing to the trustees or managers,

whether, and if so, the extent to which the custodian accepts liability in respect of functions exercised or exercisable on his behalf by an appointed person; and

(c)

which require that, immediately upon any subsequent change in the extent of the liability accepted by the custodian in respect of functions exercised or exercisable on his behalf by an appointed person, the custodian must disclose in writing to the trustees or managers whether and, if so, the extent to which his liability has changed,

section 47(3) of the 1995 Act shall not apply with respect to any reliance placed on the skill or judgement of the appointed person in the exercise of any of the functions given to the appointed person.

( 6 )

In a case where—

(a)

sub-paragraph (b)(ii) of paragraph (5) applies; or

(b)

there has been a change of a kind mentioned in sub-paragraph (c) of that paragraph,

section 47(3) of the 1995 Act shall not be disapplied by virtue of that paragraph unless the custodian has made the disclosure required by that sub-paragraph (b)(ii) or, as the case may be, that sub-paragraph (c).

( 7 )

In paragraphs (5) and (6)—

“appointed person” means any person appointed by a custodian, or by any other person empowered by the terms of his own appointment to appoint another person, to exercise any of the functions given to the custodian;
“custodian” means a person appointed by the trustees or managers to exercise any of the functions set out in regulation 2(c) of these Regulations (custody of cash, securities, etc ); and
“relevant date” means 22nd July 1998.

Annotations

Textual amendments

F1: Reg. 3(1)(a) substituted (30.8.2005, 22.9.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Occupational Pension Schemes (Administration and Audited Accounts) (Amendment) Regulations 2005 (S.I. 2005/2426), regs. 1(2), 3(3)(a)
F2: Word in reg. 3(1)(a)(i) inserted (6.4.2011) by The Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2011 (S.I. 2011/672), regs. 1(2)(b), 5
F3: Reg. 3(1)(b) omitted (30.8.2005, 22.9.2005 for specified purposes, 6.4.2006 in so far as not already in force) by virtue of Occupational Pension Schemes (Administration and Audited Accounts) (Amendment) Regulations 2005 (S.I. 2005/2426), regs. 1(2), 3(3)(g)
F4: Reg. 3(1)(c) substituted (6.4.2006) by Occupational Pension Schemes (Administration and Audited Accounts) (Amendment) Regulations 2005 (S.I. 2005/2426), regs. 1(2)(c), 4(3)(a)
F5: Reg. 3(1)(d) omitted (30.8.2005, 22.9.2005 for specified purposes, 6.4.2006 in so far as not already in force) by virtue of Occupational Pension Schemes (Administration and Audited Accounts) (Amendment) Regulations 2005 (S.I. 2005/2426), regs. 1(2), 3(3)(g)
F6: Reg. 3(1)(g) omitted (30.8.2005, 22.9.2005 for specified purposes, 6.4.2006 in so far as not already in force) by virtue of Occupational Pension Schemes (Administration and Audited Accounts) (Amendment) Regulations 2005 (S.I. 2005/2426), regs. 1(2), 3(3)(g)
F7: Reg. 3(1)(h) substituted (6.4.2006) by Occupational Pension Schemes (Administration and Audited Accounts) (Amendment) Regulations 2005 (S.I. 2005/2426), regs. 1(2)(c), 4(3)(b)
F8: Reg. 3(1)(hh) omitted (6.4.2006) by virtue of Occupational Pension Schemes (Administration and Audited Accounts) (Amendment) Regulations 2005 (S.I. 2005/2426), regs. 1(2)(c), 4(3)(c)
F9: Reg. 3(1)(j) omitted (6.4.2010) by virtue of The Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/499), regs. 1, 3(2)(a)
F10: Reg. 3(1)(k) omitted (30.8.2005, 22.9.2005 for specified purposes, 6.4.2006 in so far as not already in force) by virtue of Occupational Pension Schemes (Administration and Audited Accounts) (Amendment) Regulations 2005 (S.I. 2005/2426), regs. 1(2), 3(3)(g)
F11: Reg. 3(1)(l) omitted (30.8.2005, 22.9.2005 for specified purposes, 6.4.2006 in so far as not already in force) by virtue of Occupational Pension Schemes (Administration and Audited Accounts) (Amendment) Regulations 2005 (S.I. 2005/2426), regs. 1(2), 3(3)(g)
F12: Reg. 3(1)(m) substituted (30.8.2005, 22.9.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Occupational Pension Schemes (Administration and Audited Accounts) (Amendment) Regulations 2005 (S.I. 2005/2426), regs. 1(2), 3(3)(e)
F13: Reg. 3(1)(n) omitted (30.8.2005, 22.9.2005 for specified purposes, 6.4.2006 in so far as not already in force) by virtue of Occupational Pension Schemes (Administration and Audited Accounts) (Amendment) Regulations 2005 (S.I. 2005/2426), regs. 1(2), 3(3)(g)
F14: Reg. 3(1)(o) inserted (30.8.2005, 22.9.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Occupational Pension Schemes (Administration and Audited Accounts) (Amendment) Regulations 2005 (S.I. 2005/2426), regs. 1(2), 3(3)(f)
F15: Reg. 3(2)(b) substituted for reg. 3(2)(b)(c) (30.8.2005, 22.9.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Occupational Pension Schemes (Administration and Audited Accounts) (Amendment) Regulations 2005 (S.I. 2005/2426), regs. 1(2), 3(4)(a)
F16: Words in reg. 3(2)(a) inserted (1.8.2022) by The Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations 2022 (S.I. 2022/255), reg. 1(3), Sch. 7 para. 1(3)(a)
F17: Words in reg. 3(2)(b)(i) substituted (6.4.2006) by Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2006 (S.I. 2006/778), regs. 1(1)(a), 4(3)
F18: Word in reg. 3(2)(b)(i) omitted (6.4.2010) by virtue of The Occupational and Personal Pension Schemes (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/499), regs. 1, 3(2)(b)
F19: Reg. 3(2A) inserted (1.8.2022) by The Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations 2022 (S.I. 2022/255), reg. 1(3), Sch. 7 para. 1(3)(b)
F20: Words in reg. 3(3) revoked (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 528(a), reg. 1
F21: Reg. 3(3)(a) substituted (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 528(b), reg. 1
F22: Words in reg. 3(3)(c) and 3(4) substituted (30.8.2005, 22.9.2005 for specified purposes, 6.4.2006 in so far as not already in force) by Occupational Pension Schemes (Administration and Audited Accounts) (Amendment) Regulations 2005 (S.I. 2005/2426), regs. 1(2), 3(5)
F23: Reg. 3(5) added (22.7.1998) by The Occupational Pension Schemes (Scheme Administration) Amendment Regulations 1998 (S.I. 1998/1494), regs. 1, 2

Modifications

C1: Reg. 3(2)(a) applied (1.10.2000) by The Stakeholder Pension Schemes Regulations 2000 (S.I. 2000/1403), regs. 1(2), 32, Sch. 2
C2: Reg. 3(2)(a) applied (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 40(2)(a) (with regs. 6, 41, 44(1), 47(1), 69(2), 72(1), 76(1))
C3: Reg. 3(3) applied (1.10.2000) by The Stakeholder Pension Schemes Regulations 2000 (S.I. 2000/1403), regs. 1(2), 32, Sch. 2
C4: Reg. 3(3)(c) excluded by SI 1993/3253 Sch. 1 para. 8 (as substituted (1.4.2001) by The Parliamentary Pensions (Amendment) Regulations 2001 (S.I. 2001/835), regs. 1(1), 2(2))
C5: Reg. 3(5)-(7) applied (1.10.2000) by The Stakeholder Pension Schemes Regulations 2000 (S.I. 2000/1403), regs. 1(2), 32, Sch. 2

Notes on Part II

Textual amendments

F1: Pt. 2 heading substituted (6.4.2015) by The Occupational Pension Schemes (Charges and Governance) Regulations 2015 (S.I. 2015/879), regs. 1(2), 15(a)