The Social Security and Pensions (Financial Services and Markets Act 2000) (Consequential Amendments) Regulations (Northern Ireland) 2003

Made: 25th April 2003

Coming into operation: 2nd June 2003

The Department for Social Development, in exercise of the powers conferred by the provisions set out in the Schedule, and now vested in it[^f00001], and of all other powers enabling it in that behalf, and after agreement by the Social Security Advisory Committee that proposals to make regulation 3 should not be referred to it[^f00002] and after consultation with such persons as it considers appropriate[^f00003], hereby makes the following Regulations:

Citation, commencement and interpretation

1

• (1) These Regulations may be cited as the Social Security and Pensions (Financial Services and Markets Act 2000) (Consequential Amendments) Regulations (Northern Ireland) 2003 and shall come into operation on 2nd June 2003.

• (2) The Interpretation Act (Northern Ireland) 1954[^f00004] shall apply to these Regulations as it applies to an Act of the Assembly.

Amendment of the Personal Pension Schemes (Disclosure of Information) Regulations

2

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

Amendment of the Social Security (Payments on account, Overpayments and Recovery) Regulations

3

In regulation 10 of the Social Security (Payments on account, Overpayments and Recovery) Regulations (Northern Ireland) 1988[^f00013] (conversion of payments made in a foreign currency) –

• (a) the words from “Where a payment” to “has been deducted.” shall be numbered as paragraph (1) of that regulation;

• (b) in that paragraph for “any institution which is authorised under the Banking Act 1987” there shall be substituted “any authorised deposit-taker”;

• (c) after that paragraph there shall be added the following paragraphs –

(2) In this regulation “authorised deposit-taker” means – (a) a person who has permission under Part IV of the Financial Services and Markets Act 2000 to accept deposits; or (b) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act (EEA passport rights) which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits. (3) Paragraph (2) shall be read with – (a) section 22 of the Financial Services and Markets Act 2000 (regulated activities); (b) any relevant order under that section; and (c) Schedule 2 to that Act.

Amendment of the Personal Pension Schemes (Compensation) Regulations

4

• (1) The Personal Pension Schemes (Compensation) Regulations (Northern Ireland) 1988[^f00014] shall be amended in accordance with paragraphs (2) to (4).

• (2) In regulation 1 (interpretation) for paragraph (2)[^f00015] there shall be substituted the following paragraphs –

(2) In these Regulations – - “the Act” means the Pension Schemes (Northern Ireland) Act 1993[^f00016]; - “the 2000 Act” means the Financial Services and Markets Act 2000; - “the Appropriate Schemes Regulations” means the Personal Pension Schemes (Appropriate Schemes) Regulations (Northern Ireland) 1997; - “authorised deposit-taker” means – a person who has permission under Part IV of the 2000 Act to accept deposits, or an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act (EEA passport rights) which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits; - “authorised insurer” means – a person who has permission under Part IV of the 2000 Act to effect or carry out contracts of insurance, or an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of insurance in the United Kingdom; - “the Financial Services Compensation Scheme” has the same meaning as in section 213(2) of the 2000 Act; - “liable scheme” has the meaning assigned by regulation 2; - “scheme” means a personal pension scheme. (3) In paragraph (2) the definitions of “authorised deposit-taker” and “authorised insurer” shall be read with – (a) section 22 of the 2000 Act (regulated activities); (b) any relevant order under that section, and (c) Schedule 2 to that Act.

• (3) In regulation 2 (application of regulations) –

• (a) for paragraph (a) there shall be substituted the following paragraph –

(a) mentioned in regulation 2(2)(a) of the Appropriate Schemes Regulations (insurance policies and annuity contracts), being a scheme established by an authorised insurer who is subject to the provisions of, or participates in, the Financial Services Compensation Scheme;

• (b) paragraph (b) shall be omitted;

• (c) for paragraphs (c) and (d) there shall be substituted the following paragraphs –

(c) mentioned in regulation 2(2)(b) of the Appropriate Schemes Regulations (unit trust schemes), being a scheme of which the trustee and operator are both subject to the provisions of the Financial Services Compensation Scheme, and (d) mentioned in regulation 2(2)(c) of the Appropriate Schemes Regulations (interest-bearing accounts etc. with banks and building societies), being a scheme which is established by an authorised deposit-taker who is subject to the provisions of, or participates in, the Financial Services Compensation Scheme,

• (4) In regulation 3 (requirements to be complied with by liable schemes in the event of insolvency) –

• (a) for paragraph (1)[^f00017] there shall be substituted the following paragraph –

(1) For the purposes of section 26(1)(b) of the Act[^f00018] (securing of liability for protected rights) the prescribed circumstances are that if the scheme is a liable scheme which takes the form mentioned in any of sub-paragraphs (a), (b) and (c) of regulation 2(2) of the Appropriate Schemes Regulations, and if the provisions of the Financial Services Compensation Scheme applied, those provisions would become operative.

• (b) for paragraph (3) there shall be substituted the following paragraph –

(3) The extent to which the liability specified in paragraph (2) must be met from some other source is, if the scheme takes the form mentioned in any of sub-paragraphs (a), (b) and (c) of regulation 2(2) of the Appropriate Schemes Regulations, the extent to which it would be met under the Financial Services Compensation Scheme if the rules of that Scheme applied.

Amendment of the Occupational Pension Schemes (Discharge of Protected Rights on Winding Up) Regulations

5

For regulation 3 of the Occupational Pension Schemes (Discharge of Protected Rights on Winding Up) Regulations (Northern Ireland) 1996[^f00019] (requirements applying to insurance companies) there shall be substituted the following regulation –

(3) (1) The requirements referred to in section 28A(2)(a)(ii) of the Act[^f00020] (policy of insurance appropriate if the insurer satisfies prescribed requirements) are that the insurer is – (a) a person who has permission under Part IV of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance, or (b) an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act (EEA passport rights) which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance in the United Kingdom. (2) In paragraph (1) the expression “contracts of long-term insurance” shall be read with – (a) section 22 of the Financial Services and Markets Act 2000 (regulated activities); (b) any relevant order under that section, and (c) Schedule 2 to that Act.

Amendment of the Occupational Pension Schemes (Member-nominated Trustees and Directors) Regulations

6

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

Amendment of the Occupational Pension Schemes (Minimum Funding Requirement and Actuarial Valuations) Regulations

7

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

Amendment of the Occupational Pension Schemes (Investment) Regulations

8

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

Amendment of the Personal and Occupational Pension Schemes (Pensions Ombudsman) Regulations

9

• (1) The Personal and Occupational Pension Schemes (Pensions Ombudsman) Regulations (Northern Ireland) 1997[^f00026] shall be amended in accordance with paragraphs (2) to (4).

• (2) In regulation 1(2) (interpretation) after the definition of “the Act” there shall be inserted the following definition –

• “the 2000 Act” means the Financial Services and Markets Act 2000;

• (3) In regulation 4 (exclusions from jurisdiction) for paragraph (1)[^f00027] there shall be substituted the following paragraph –

(1) The Pensions Ombudsman shall not investigate or determine any complaint or dispute which can be (and is in fact) dealt with under the compulsory jurisdiction of the ombudsman scheme provided for by Part XVI of the 2000 Act, other than a complaint or dispute relating to the management of a personal pension scheme.

• (4) In regulation 6 (payment of interest on late paid benefit) –

• (a) in paragraph (2) for sub-paragraph (b) there shall be substituted the following sub-paragraph –

(b) “reference banks” means the 4 largest persons for the time being who – (i) have permission under Part IV of the 2000 Act to accept deposits; (ii) are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits; and (iii) quote a base rate applicable to sterling deposits.

• (b) after paragraph (2) there shall be added the following paragraph –

(3) Paragraph (2)(b) shall be read with – (a) section 22 of the 2000 Act (regulated activities); (b) any relevant order under that section; (c) Schedule 2 to that Act.

Amendment of the Personal and Occupational Pension Schemes (Protected Rights) Regulations

10

The Personal and Occupational Pension Schemes (Protected Rights) Regulations (Northern Ireland) 1997[^f00028] (insurance companies that may provide protected rights by way of annuities) shall be amended in accordance with paragraphs (2) and (3).

• (2) In the heading to regulation 11 for “Insurance companies” there shall be substituted “Insurers”.

• (3) In regulation 11 –

• (a) the words from “For the purposes of” to “revoked or rescinded.” shall be numbered as paragraph (1) of that regulation;

• (b) in that paragraph –

• (i) for “insurance company” in both places where it occurs there shall be substituted “insurer”;

• (ii) for sub-paragraph (a) there shall be substituted the following sub-paragraph –

(a) (i) is a person who has permission under Part IV of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance; or (ii) is an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act (EEA passport rights) which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance;

• (c) after that paragraph there shall be added the following paragraph –

(2) Paragraph (1)(a) shall be read with – (a) section 22 of the Financial Services and Markets Act 2000 (regulated activities); (b) any relevant order under that section; and (c) Schedule 2 to that Act.

Amendment of the Occupational Pension Schemes (Scheme Administration) Regulations

11

• (1) The Occupational Pension Schemes (Scheme Administration) Regulations (Northern Ireland) 1997[^f00029] shall be amended in accordance with paragraphs (2) to (6).

• (2) In regulation 1(2) (interpretation) before the definition of “approved scheme” there shall be inserted the following definition –

• “the 2000 Act” means the Financial Services and Markets Act 2000;

• (3) In regulation 3(3) (professional advisers' requirements: exceptions) –

• (a) the words “(within the meaning of the Financial Services Act 1986)” shall be omitted;

• (b) for sub-paragraph (a) there shall be substituted the following sub-paragraph –

(a) relevant schemes of a kind mentioned in article 4(4) of the Financial Services and Markets Act 2000 (Carrying on Regulated Activities by Way of Business) Order 2001[^f00030] (managing investments: occupational pension schemes);

• (4) In regulation 5(2)(b)[^f00031] (manner and terms of appointment and removal of professional advisers) for head (i) there shall be substituted the following head –

(i) in the case of a fund manager, or a person carrying out functions referred to in regulation 2(c), who is subject to rules made under section 138 of the 2000 Act which impose requirements in relation to conflicts of interest, confirm in writing that he will notify the trustees or managers of any conflict of interest to which he is or may be subject in relation to the scheme in accordance with those requirements; and

• (5) In regulation 11 (requirement for money to be kept by trustees: exception) –

• (a) in paragraph (1)[^f00032] –

• (i) for “at an institution authorised under the Banking Act 1987” there shall be substituted “with a deposit-taker”;

• (ii) in sub-paragraph (b) for head (i) there shall be substituted the following head –

(i) kept by them with any of the persons specified in paragraph (3);

• (b) after paragraph (2) there shall be added the following paragraphs –

(3) The persons referred to in paragraph (1)(b)(i) are – (a) the Bank of England or the central bank of another EEA State; (b) the National Savings Bank; or (c) a municipal bank. (4) In paragraph (3) – (a) “EEA State” means a State which is a contracting party to the agreement on the European Economic Area signed at Oporto on 2nd May 1992 as it has effect for the time being; (b) “municipal bank” means a company – (i) in respect of which a resolution has been passed by a local authority under section 48(3) of the Banking Act 1979[^f00033] or section 103(3) of the Banking Act 1987[^f00034]; and (ii) is exempt from the prohibition imposed by section 19 of the 2000 Act in relation to the acceptance of deposits. (5) Paragraph (4)(b) shall be read with – (a) section 22 of the 2000 Act (regulated activities); (b) any relevant order under that section; and (c) Schedule 2 to that Act.

• (6) In regulation 15 (employer to make payments of benefits into a separate account) –

• (a) the words from “An employer is” to “by the employer.” shall be numbered as paragraph (1) of that regulation;

• (b) in that paragraph for “an institution authorised under the Banking Act 1987” there shall be substituted “a deposit-taker”;

• (c) after that paragraph there shall be added the following paragraphs –

(2) In this regulation “deposit-taker” means – (a) a person who has permission under Part IV of the 2000 Act to accept deposits; or (b) an EEA firm of the kind mentioned in paragraph 5(b) of Schedule 3 to that Act (EEA passport rights) which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12(1) of that Schedule) to accept deposits. (3) Paragraph (2) shall be read with – (a) section 22 of the 2000 Act (regulated activities); (b) any relevant order under that section; and (c) Schedule 2 to that Act.

Amendment of the Personal Pension Schemes (Appropriate Schemes) Regulations

12

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

Amendment of the Occupational Pension Schemes (Pensions Compensation Provisions) Regulations

13

In regulation 1 of the Occupational Pension Schemes (Pensions Compensation Provisions) Regulations 1997[^f00038] (interpretation) –

• (a) in paragraph (2) for the definition of “reference banks”[^f00039] there shall be substituted the following definition –

• “reference banks” means the 4 largest persons for the time being who – have permission under Part IV of the Financial Services and Markets Act 2000[^f00040] to accept deposits; are incorporated in the United Kingdom and carrying on there a regulated activity of accepting deposits; and quote a base rate applicable to sterling deposits;

• (b) after paragraph (2) there shall be inserted the following paragraph –

(2A) In paragraph (2) the definition of “reference banks” shall be read with – (a) section 22 of the Financial Services and Markets Act 2000 (regulated activities); (b) any relevant order under that section; and (c) Schedule 2 to that Act.

Amendment of the Occupational Pension Schemes (Discharge of Liability) Regulations

14

In regulation 2 of the Occupational Pension Schemes (Discharge of Liability) Regulations (Northern Ireland) 1997[^f00041] (requirements applying to policies of insurance and annuity contracts) –

• (a) in paragraph (1) for the words from “with an insurance company” to the end there shall be substituted –

with – (a) a person who has permission under Part IV of the Financial Services and Markets Act 2000 to effect or carry out contracts of long-term insurance; or (b) an EEA firm of the kind mentioned in paragraph 5(d) of Schedule 3 to that Act (EEA passport rights) which has permission under paragraph 15 of that Schedule (as a result of qualifying for authorisation under paragraph 12 of that Schedule) to effect or carry out contracts of long-term insurance.

• (b) for paragraph (2) there shall be substituted the following paragraph –