The Occupational Pension Schemes (Scheme Administration) Regulations 1996

[^key-5287c2a2500daae0d02cbcd177f504e0]: Words in reg. 7(d) substituted (13.3.2014) by The Marriage (Same Sex Couples) Act 2013 (Consequential Provisions) Order 2014 (S.I. 2014/107), art. 1(2), Sch. 1 para. 19

[^key-f23c08ce333e3a9b33f91b7156d042be]: Words in reg. 4(2)(d) inserted (6.4.2014) by The Occupational Pension Schemes (Miscellaneous Amendments) Regulations 2014 (S.I. 2014/540), regs. 1, 2(2)(a)

[^key-f195e131ec6affaad2e6ee2cddc2452e]: Reg. 4(3)(4) inserted (6.4.2014) by The Occupational Pension Schemes (Miscellaneous Amendments) Regulations 2014 (S.I. 2014/540), regs. 1, 2(2)(b)

[^key-ece8e2d956fa02bacd1e0f39080eb7ae]: 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))

[^key-564c6a74935d7083679f0af4c0281442]: Pt. IV continued (temp.) (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 68 (with regs. 6, 41, 44(1), 47(1), 69(2), 72(1), 76(1))

[^key-6d1d58d1311329c8b04d6f495771186f]: Reg. 16A substituted (1.4.2015) by The Public Service Pensions (Record Keeping and Miscellaneous Amendments) Regulations 2014 (S.I. 2014/3138), regs. 1, 7

[^key-9ffd6fd764f8259accc6dc576c0d05b1]: 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)

[^key-fe396d6f389efcb708161ffc90eb4969]: Reg. 6A inserted (6.4.2015) by The Occupational Pension Schemes (Charges and Governance) Regulations 2015 (S.I. 2015/879), regs. 1(2), 15(b)

[^key-858603e2c4025a0cacbfb4f9986ea2e7]: Pt. V inserted (6.4.2015) by The Occupational Pension Schemes (Charges and Governance) Regulations 2015 (S.I. 2015/879), regs. 1(2), 16(1)(b)

[^key-bd4dd8e834792debde9c90f968cac645]: Reg. 23 inserted (6.4.2015) by The Occupational Pension Schemes (Charges and Governance) Regulations 2015 (S.I. 2015/879), regs. 1(2), 17(1)

[^key-25faacd2468109b5ceeb8a0a41f5f95e]: Reg. 24 inserted (6.4.2015) by The Occupational Pension Schemes (Charges and Governance) Regulations 2015 (S.I. 2015/879), regs. 1(2), 18

[^key-d28119513f0cb13c2d7a59af91be2c91]: Reg. 25 inserted (6.4.2015) by The Occupational Pension Schemes (Charges and Governance) Regulations 2015 (S.I. 2015/879), regs. 1(2), 19

[^key-ccf402c396b04f4c9725be6cba0e35d2]: It is provided that Ch. 3 is inserted (6.4.2015) by The Occupational Pension Schemes (Charges and Governance) Regulations 2015 (S.I. 2015/879), regs. 1(2), 22

[^key-3e1cef3484bf8b5393d7e96eb9ee4c08]: Words in reg. 1(2) inserted (6.4.2015) by The Occupational Pension Schemes (Charges and Governance) Regulations 2015 (S.I. 2015/879) , regs. 1(2) , 14(a)

[^key-accf2924fd686b63e09938359545d340]: Reg. 1(2ZB) inserted (6.4.2015) by The Occupational Pension Schemes (Charges and Governance) Regulations 2015 (S.I. 2015/879) , regs. 1(2) , 14(b)

[^key-46087e815f72468b97710335584ba1e4]: Words in reg. 1(2) inserted (6.4.2015) by The Occupational Pension Schemes (Charges and Governance) Regulations 2015 (S.I. 2015/879) , regs. 1(2) , 16(1)(a)

[^key-669b516662f869dfdb9ceba78f3e6b9d]: Words in reg. 1(2) inserted (6.4.2015) by The Occupational Pension Schemes (Charges and Governance) Regulations 2015 (S.I. 2015/879) , regs. 1(2) , 21(a)

[^key-bf3d4731fe8c435d28909249817b31c9]: Words in reg. 1(2) omitted (1.1.2016) by virtue of The Solvency 2 Regulations 2015 (S.I. 2015/575), reg. 1(2), Sch. 2 para. 6(2)(a)

[^key-3df1d611a4a265e2fbd52b19443c6d13]: Words in reg. 1(2) inserted (1.1.2016) by The Solvency 2 Regulations 2015 (S.I. 2015/575), reg. 1(2), Sch. 2 para. 6(2)(b)

[^key-ec4f2bf27aafc784c2f4b6c7b8f3105f]: Words in reg. 1(2) substituted (1.1.2016) by The Solvency 2 Regulations 2015 (S.I. 2015/575), reg. 1(2), Sch. 2 para. 6(2)(c)

[^key-be61c883193dd14dbc1cc1988307fd19]: Word in reg. 1(2) inserted (6.4.2016) by The Occupational Pension Schemes (Charges and Governance) Regulations 2015 (S.I. 2015/879), regs. 1(3), 23(a)

[^key-f7221b927b08fbce942dc0a89bfe0c9b]: Words in reg. 1(2) omitted (6.4.2016) by virtue of The Occupational Pension Schemes (Charges and Governance) Regulations 2015 (S.I. 2015/879), regs. 1(3), 23(b)

[^key-0de64caacfab1d9841ac395cb532378d]: Words in reg. 1(2) substituted (6.4.2016) by The Occupational Pension Schemes (Scheme Administration) (Amendment) Regulations 2016 (S.I. 2016/427), regs. 1, 3

[^key-bb9c1841013ebaead77ccedf4d66c8b9]: Reg. 1(2ZA) substituted (6.4.2016) by The Occupational Pension Schemes (Scheme Administration) (Amendment) Regulations 2016 (S.I. 2016/427), regs. 1, 4

[^key-6d49057de8f8efd1eb249ba2b88962bd]: Words in reg. 22(5) inserted (6.4.2016) by The Occupational Pension Schemes (Scheme Administration) (Amendment) Regulations 2016 (S.I. 2016/427), regs. 1, 5(1)

[^key-c2cd442a934d0cf06a5209d420708f2a]: Reg. 22(7) inserted (6.4.2016) by The Occupational Pension Schemes (Scheme Administration) (Amendment) Regulations 2016 (S.I. 2016/427), regs. 1, 5(2)

[^key-e0584b053b5ec42b7a3766553e81c346]: Reg. 23(1)(e) substituted (6.4.2016) by The Occupational Pension Schemes (Scheme Administration) (Amendment) Regulations 2016 (S.I. 2016/427), regs. 1, 6

[^key-baa180717bfce6f410615ac347598629]: Reg. 27(2A) inserted (6.4.2016) by The Occupational Pension Schemes (Scheme Administration) (Amendment) Regulations 2016 (S.I. 2016/427), regs. 1, 7(1)

[^key-c0a8bf8ed8fee11b1886806cb46055d7]: Reg. 27(7A) inserted (6.4.2016) by The Occupational Pension Schemes (Scheme Administration) (Amendment) Regulations 2016 (S.I. 2016/427), regs. 1, 7(2)

[^key-ed8d1f3569709fef5d92a1fab0d7ba56]: Reg. 23(1)(c)(i) substituted (coming into force in accordance with reg. 1(1)(3) of the amending S.I.) by The Occupational Pension Schemes (Administration and Disclosure) (Amendment) Regulations 2018 (S.I. 2018/233), reg. 2(2)

[^key-461347affab5ed96f2be3e48cf8c9713]: Reg. 23(1)(ca) inserted (coming into force in accordance with reg. 1(1)(3) of the amending S.I.) by The Occupational Pension Schemes (Administration and Disclosure) (Amendment) Regulations 2018 (S.I. 2018/233), reg. 2(4)

[^key-7fb94c6d8635dae645655f38c48495cb]: Reg. 23(1A) inserted (coming into force in accordance with reg. 1(1)(3) of the amending S.I.) by The Occupational Pension Schemes (Administration and Disclosure) (Amendment) Regulations 2018 (S.I. 2018/233), reg. 2(5)

[^key-08e8cea8857c6712c4a3a1a86ff32d8a]: Words in reg. 1(2) omitted (31.12.2020) by virtue of The Occupational and Personal Pension Schemes (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/192), regs. 1, 10(2); 2020 c. 1, Sch. 5 para. 1(1)

[^key-39a9155c9bb56e30adbe58b010ffbccc]: Words in reg. 11(3)(a) omitted (31.12.2020) by virtue of The Occupational and Personal Pension Schemes (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/192), regs. 1, 10(3)(a); 2020 c. 1, Sch. 5 para. 1(1)

[^key-f57040032a791f3fa303025c2dde87b8]: Reg. 11(4)(a) omitted (31.12.2020) by virtue of The Occupational and Personal Pension Schemes (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/192), regs. 1, 10(3)(b); 2020 c. 1, Sch. 5 para. 1(1)

[^key-223608c5abb10026116afd771c53844a]: Reg. 15(2)(a)(ii) and word omitted (31.12.2020) by virtue of The Occupational and Personal Pension Schemes (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/192), regs. 1, 10(4); 2020 c. 1, Sch. 5 para. 1(1)

[^key-7cd98830e7979f15df9ba2a267a78333]: Reg. 23(1)(aa) inserted (with application in accordance with reg. 1(3) of the amending S.I.) by The Occupational Pension Schemes (Administration, Investment, Charges and Governance) (Amendment) Regulations 2021 (S.I. 2021/1070), regs. 1(2), 2(2)(a)(i)

[^key-bb2405485cba88723b854f8f1cb9fe6a]: Reg. 23(1)(c)(ii) substituted (with application in accordance with reg. 1(3) of the amending S.I.) by The Occupational Pension Schemes (Administration, Investment, Charges and Governance) (Amendment) Regulations 2021 (S.I. 2021/1070), regs. 1(2), 2(2)(a)(ii)(aa)

[^key-66f69af399e8515487e824a25a880c91]: Reg. 23(1)(c)(iv) substituted (with application in accordance with reg. 1(3) of the amending S.I.) by The Occupational Pension Schemes (Administration, Investment, Charges and Governance) (Amendment) Regulations 2021 (S.I. 2021/1070), regs. 1(2), 2(2)(a)(ii)(bb)

[^key-a331bf60e78af00738d37ca65f5711f2]: Reg. 23(1)(cb) inserted (with application in accordance with reg. 1(4) of the amending S.I.) by The Occupational Pension Schemes (Administration, Investment, Charges and Governance) (Amendment) Regulations 2021 (S.I. 2021/1070), regs. 1(2), 2(2)(a)(iii)

[^key-dfabec664b93683b9ab9cfcb4fd135d8]: Reg. 23(1B) inserted (with application in accordance with reg. 1(3) of the amending S.I.) by The Occupational Pension Schemes (Administration, Investment, Charges and Governance) (Amendment) Regulations 2021 (S.I. 2021/1070), regs. 1(2), 2(2)(b)

[^key-423cc454e8d64bbef38297540338d5e8]: Words in reg. 25(1)(a)(i) substituted (with application in accordance with reg. 1(3) of the amending S.I.) by The Occupational Pension Schemes (Administration, Investment, Charges and Governance) (Amendment) Regulations 2021 (S.I. 2021/1070), regs. 1(2), 2(3)(a)(i)

[^key-4ed61ee3a6fac025e480fac0dac3dc47]: Words in reg. 25(1)(a)(ii) substituted (with application in accordance with reg. 1(3) of the amending S.I.) by The Occupational Pension Schemes (Administration, Investment, Charges and Governance) (Amendment) Regulations 2021 (S.I. 2021/1070), regs. 1(2), 2(3)(a)(ii)

[^key-bd256cc6788f1e5ed14b4a0bb6916fc7]: Reg. 25(1)(a)(iii) inserted (with application in accordance with reg. 1(3) of the amending S.I.) by The Occupational Pension Schemes (Administration, Investment, Charges and Governance) (Amendment) Regulations 2021 (S.I. 2021/1070), regs. 1(2), 2(3)(a)(iii)

[^key-e1a3cd85e194cf11a663501dd940c003]: Reg. 25(1A)-(1E) inserted (with application in accordance with reg. 1(4) of the amending S.I.) by The Occupational Pension Schemes (Administration, Investment, Charges and Governance) (Amendment) Regulations 2021 (S.I. 2021/1070), regs. 1(2), 2(3)(b)

[^key-0c186b38481a6b927b699e1eec75ec53]: Reg. 25(4)-(6) inserted (with application in accordance with reg. 1(4) of the amending S.I.) by The Occupational Pension Schemes (Administration, Investment, Charges and Governance) (Amendment) Regulations 2021 (S.I. 2021/1070), regs. 1(2), 2(3)(c)

[^key-315e80c9c073be55949f78361cec4123]: Words in reg. 25(1)(a) omitted (with application in accordance with reg. 1(3) of the amending S.I.) by virtue of The Occupational Pension Schemes (Administration, Investment, Charges and Governance) (Amendment) Regulations 2021 (S.I. 2021/1070), regs. 1(2), 2(3)(a)(iv)

[^key-64a2f7ca6938ac9c16dd414fbfbfd6cf]: Words in reg. 1(2) 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(2)

[^key-176150b19074d06e8aa5500f5a4812cf]: 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)

[^key-aaac4ae4c25eebb4442d348530ec52bb]: 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)

[^key-bb253a587099fcf16aa47cd6e6fc1b46]: Words in reg. 23(1)(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(4)(a)

[^key-303f069f50a27175c665aa0bafbc8ba4]: Words in reg. 23(1)(aa)(i) 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(4)(b)

[^key-bd845f4868a754eb2d75b4c84b927db3]: Words in reg. 23(1)(aa)(ii) 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(4)(c)

[^key-c5d36fc3071fcdecd0f12235b7ceb393]: Words in reg. 23(1)(c)(i) 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(4)(d)

[^key-1fdaba2240cf0af069781d510ac6be4e]: Words in reg. 23(1)(c)(ii) 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(4)(e)

[^key-1ce19bd7519f0db599fa9a0f713cced6]: Reg. 23(1)(cza) 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(4)(f)

[^key-60e4f252c401014379d373ba31e8ff7f]: Words in reg. 25(1A) 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(5)(a)

[^key-810fb23eddc6f5258b51098f8fc8448c]: Reg. 25(1ZA) 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(5)(b)

[^key-9990c7da9d5ba0d1f392d8a90d51df47]: Words in reg. 25(1C)(c) 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(5)(c)(i)

[^key-2d9534f0829e41ce780c0e82a3f3eab5]: Reg. 25(1C)(ca) 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(5)(c)(ii)

[^key-217a12b5b829eec41a2df069cf1ee668]: Pt. 6 inserted (1.10.2022) by The Occupational Pension Schemes (Governance and Registration) (Amendment) Regulations 2022 (S.I. 2022/825), regs. 1(2), 2(2)

[^key-7b8acef2ecb778ec05a969c59a92ec17]: Reg. 25A inserted (with application in accordance with reg. 1(7) of the amending S.I.) by The Occupational Pension Schemes (Administration, Investment, Charges and Governance) and Pensions Dashboards (Amendment) Regulations 2023 (S.I. 2023/399), regs. 1(3), 4(5)

[^key-24a97b9a5a408bdeb01c3a726f36fba3]: Words in reg. 1(2) inserted (6.4.2023) by The Occupational Pension Schemes (Administration, Investment, Charges and Governance) and Pensions Dashboards (Amendment) Regulations 2023 (S.I. 2023/399), regs. 1(3), 4(2)

[^key-4fde451b5d595c084ae6c340728f1d86]: Reg. 23(1)(aza) inserted (with application in accordance with reg. 1(6) of the amending S.I.) by The Occupational Pension Schemes (Administration, Investment, Charges and Governance) and Pensions Dashboards (Amendment) Regulations 2023 (S.I. 2023/399), regs. 1(3), 4(3)(a)

[^key-716390ac5301755edfb455a47034d3ee]: Reg. 23(1)(cc) inserted (with application in accordance with reg. 1(7) of the amending S.I.) by The Occupational Pension Schemes (Administration, Investment, Charges and Governance) and Pensions Dashboards (Amendment) Regulations 2023 (S.I. 2023/399), regs. 1(3), 4(3)(c)

[^key-f2d26ba9e0a80540beaa76d9f95bc6d8]: Reg. 23(1)(cza)(iii) and word inserted (with application in accordance with reg. 1(6) of the amending S.I.) by The Occupational Pension Schemes (Administration, Investment, Charges and Governance) and Pensions Dashboards (Amendment) Regulations 2023 (S.I. 2023/399), regs. 1(3), 4(3)(b)(ii)

[^key-21189d3c5552490e93252274eab27642]: Word in reg. 23(1)(cza)(i) omitted (with application in accordance with reg. 1(6) of the amending S.I.) by virtue of The Occupational Pension Schemes (Administration, Investment, Charges and Governance) and Pensions Dashboards (Amendment) Regulations 2023 (S.I. 2023/399), regs. 1(3), 4(3)(b)(i)

[^key-334d57c3ed594f84df7a19af266f1cf6]: Reg. 25(1)(a)(iv) inserted (with application in accordance with reg. 1(6) of the amending S.I.) by The Occupational Pension Schemes (Administration, Investment, Charges and Governance) and Pensions Dashboards (Amendment) Regulations 2023 (S.I. 2023/399), regs. 1(3), 4(4)(a)

[^key-087813c32af4aeb3fadd37ed0226a1e1]: Words in reg. 25(1)(b) inserted (with application in accordance with reg. 1(6) of the amending S.I.) by The Occupational Pension Schemes (Administration, Investment, Charges and Governance) and Pensions Dashboards (Amendment) Regulations 2023 (S.I. 2023/399), regs. 1(3), 4(4)(b)

[^key-3009ec173a20178cfd2b9e0afec64f64]: Word in Sch. para. 2 omitted (24.2.2025) by virtue of The Procurement Act 2023 (Consequential and Other Amendments) Regulations 2025 (S.I. 2025/163), regs. 1(2), 9(2)(a)(i)

[^key-1c935e223f23819f4425e87a77741ded]: Words in Sch. para. 2 inserted (24.2.2025) by The Procurement Act 2023 (Consequential and Other Amendments) Regulations 2025 (S.I. 2025/163), regs. 1(2), 9(2)(a)(ii)

[^key-8e2298dff03b08818d449a193792afee]: Sch. para. 7(2)(b)(v) inserted (24.2.2025) by The Procurement Act 2023 (Consequential and Other Amendments) Regulations 2025 (S.I. 2025/163), regs. 1(2), 9(2)(b)

[^key-1ae17a1c0ea8b2ddd658063ac386d8a3]: Words in Sch. para. 8(3)(b) inserted (24.2.2025) by The Procurement Act 2023 (Consequential and Other Amendments) Regulations 2025 (S.I. 2025/163), regs. 1(2), 9(2)(c)(i)

[^key-82ac84663c2feb660fa36dd1d730c20c]: Words in Sch. para. 8(4)(a) inserted (24.2.2025) by The Procurement Act 2023 (Consequential and Other Amendments) Regulations 2025 (S.I. 2025/163), regs. 1(2), 9(2)(c)(ii)

[^key-3d265a6b307c8fee58b2bc811d3f0502]: Words in Sch. para. 8(4)(b) inserted (24.2.2025) by The Procurement Act 2023 (Consequential and Other Amendments) Regulations 2025 (S.I. 2025/163), regs. 1(2), 9(2)(c)(ii)

[^key-3bee3a5e7de81940ab5bbd6dd03602d1]: Words in Sch. para. 8(4)(c)(ii) inserted (24.2.2025) by The Procurement Act 2023 (Consequential and Other Amendments) Regulations 2025 (S.I. 2025/163), regs. 1(2), 9(2)(c)(ii)

Appointment of service providers in respect of relevant schemes

6A

The trust deed or scheme rules must not contain a provision that—

• (a) requires that the administrative, fund management, advisory or other services in respect of the scheme are provided by a person identified in any document; or

• (b) restricts the choice of person who may be appointed to provide such services.

• (2) Paragraph (1) overrides any provision of a relevant scheme to the extent that it conflicts with that paragraph.

• (3) In relation to a relevant scheme which is not a money purchase scheme, this regulation applies only in relation to services which are provided in connection with the provision of money purchase benefits.

PART V — GOVERNANCE OF RELEVANT SCHEMES

CHAPTER 1 — GENERAL

Duty to appoint a chair of the trustees or managers

22

• (1) Where a relevant scheme which is a trust scheme does not have a chair appointed, the trustees must appoint a chair of the trustees in accordance with this regulation.

• (2) The chair of the trustees must be—

• (a) an individual who is a trustee of the scheme;

• (b) a professional trustee body which is a trustee of the scheme;

• (c) where a company which is not a professional trustee body is a trustee of the scheme, an individual who is a director of that company and through whom the company exercises its functions as a trustee of the scheme, or a professional trustee body which is a director of that company; or

• (d) in the case of a scheme established under section 67 of the Pensions Act 2008, a member of the trustee corporation established under section 75 of that Act.

• (3) Where a relevant scheme is not a trust scheme, the managers must appoint one of their number to be the chair of the managers.

• (4) The first chair of a relevant scheme must be appointed before the end of the period of three months starting with the date on which the scheme is established (but see also paragraph (6)).

• (5) Where the chair ceases to hold office as chair for any reason, the trustees or managers must appoint a replacement in accordance with the provisions of this regulation, before the end of the period of three months starting with the date on which the chair ceases to hold that office (but see also paragraph (7)).

• (6) Paragraph (4) does not apply to a relevant scheme which was established before 6th April 2015 and, if the scheme has no chair on that date, the first chair must be appointed before the end of the period of three months starting with that date.

• (7) Paragraph (5) does not apply to a scheme established under section 67 of the Pensions Act 2008.

Annual statement regarding governance

23

• (1) Subject to paragraph (3), the trustees or managers of a relevant scheme must prepare a statement within seven months of the end of each scheme year, and that statement must—

• (a) in relation to the default arrangement (if any)—

• (i) include the latest statement prepared in accordance with regulation 2A (default investment strategy) of the Occupational Pension Schemes (Investment) Regulations 2005 (“the Investment Regulations”);

• (ii) describe any review undertaken during the scheme year in accordance with paragraph (2) of that regulation;

• (iii) explain any changes resulting from such a review; and

• (iv) where no review was undertaken during the scheme year, give the date of the last review;

• (aza) state the amount of any specified performance-based fees incurred in relation to each default arrangement (if any) during the scheme year, calculated in accordance with regulation 25(1)(a), as a percentage of the average value of the assets held for the purposes of that default arrangement during the scheme year;

• (aa) state the return on investments, after deduction of any charges or transaction costs relating to those investments (calculated in accordance with regulation 25(1)(a)), relating to—

• (i) each default arrangement (if any), and

• (ii) each fund (if any)—

• (aa) which members are now able to select or were in the past able to select, and

• (bb) in which assets relating to members are invested during the scheme year,

having regard to guidance issued by the Secretary of State under section 113(2A) of the Pension Schemes Act 1993;

• (b) describe how the requirements of regulation 24 of these Regulations (requirements for processing financial transactions) have been met during the scheme year;

• (c) in relation to the charges and transaction costs which the trustees or managers are required to calculate in accordance with regulation 25(1)(a) of these Regulations—

• (i) state the level of charges and transaction costs applicable to each default arrangement (if any) during the scheme year;

• (ii) state the levels of charges and transaction costs applicable to each fund (if any)—

• (aa) which members are now able to select or were in the past able to select, and

• (bb) in which assets relating to members are invested during the scheme year;

• (iii) indicate any information about transaction costs which the trustees or managers have been unable to obtain and explain what steps are being taken to obtain that information in the future; and

• (iv) where the trustees or managers are required to assess the extent to which the charges and transaction costs borne by members represent good value for members, explain that assessment and its results;

• (cza) for a collective money purchase scheme, state—

• (i) the charges and transaction costs applicable to the scheme; ...

• (ii) the return on investments, after deduction of any charges or transaction costs relating to those investments, relating to the fund, having regard to guidance issued by the Secretary of State under section 113(2A) of the Pension Schemes Act 1993; and

• (iii) where the scheme is a qualifying collective money purchase scheme for the purposes of regulation 3A of the Occupational Pension Schemes (Charges and Governance) Regulations 2015 (qualifying collective money purchase schemes), the amount of any specified performance-based fees incurred in relation to the scheme during the scheme year, calculated in accordance with regulation 25(1)(a), as a percentage of the average value of the assets held for the purposes of the scheme during the scheme year;

• (ca) include, in relation to the charges and transaction costs which trustees or managers are required to calculate in accordance with regulation 25(1)(a) of these Regulations, an illustrative example of the cumulative effect over time of the application of those charges and costs on the value of a member’s accrued rights to money purchase benefits;

• (cb) explain the results of any assessment required by virtue of regulation 25(1A);

• (cc) state the results of any calculations required by virtue of regulation 25A (assessment of asset allocation);

• (d) describe how the requirements of sections 247 and 248 of the 2004 Act (requirements for knowledge and understanding) have been met during the scheme year and explain how the combined knowledge and understanding of the trustees or managers, together with the advice which is available to them, enables them properly to exercise their functions as trustees or managers of the scheme; and

• (e) be signed on behalf of the trustees or managers by—

• (i) the chair; or

• (ii) where the chair has ceased to hold office as chair for any reason and a replacement has not yet been appointed, a person appointed by the trustees or managers to act as the chair in the interim period.

• (1A) In complying with the requirements imposed by paragraph (1)(c)(i), (ii) and (ca), the trustees or managers must have regard to guidance prepared from time to time by the Secretary of State.

• (1B) Paragraph (1)(cb) does not apply if—

• (a) the Regulator has been notified under section 62(4) or (5) of the Pensions Act 2004 that the winding up of the scheme in question has commenced, and

• (b) the trustees or managers of the scheme explain why they are not complying with paragraph (1)(cb) in the statement required under paragraph (1)(c)(iv).

• (2) Where the first statement required to be prepared by the trustees or managers of a relevant scheme in accordance with this regulation relates to a scheme year which ends before 5th April 2016, this regulation applies to that statement as if references to “the scheme year” in sub-paragraphs (a) to (d) of paragraph (1) were to the part of the scheme year starting on 6th April 2015.

• (3) Where the circumstances in paragraph (2) apply and the period to be covered by the first statement is three months or less, paragraph (1) does not apply to that scheme year, but the statement required to be prepared in relation to the following scheme year must include information relating to the period of three months or less of the previous scheme year.

• (4) In this regulation “default arrangement” has the same meaning as in the Investment Regulations.

Requirements for processing financial transactions

24

• (1) The trustees or managers of a relevant scheme must secure that core financial transactions are processed promptly and accurately.

• (2) A “core financial transaction” includes (but is not limited to)—

• (a) investment of contributions to the scheme;

• (b) transfers of assets relating to members into and out of the scheme;

• (c) transfers of assets relating to members between different investments within the scheme;

• (d) payments from the scheme to, or in respect of, members.

• (3) In relation to a scheme which is not a money purchase scheme, this regulation applies only in relation to the provision of money purchase benefits.

Assessment of charges and transaction costs

25

• (1) The trustees or managers of a relevant scheme must, at intervals of no more than one year—

• (a) calculate—

• (i) the charges borne by members of the scheme,

• (ii) in so far as they are able to do so, the transaction costs borne by members of the scheme, and

...

• (iii) the returns on investments earned by assets in the scheme, and

• (iv) the specified performance-based fees incurred in respect of assets in the scheme, and

• (b) assess the extent to which those charges, specified performance-based fees and transaction costs represent good value for members.

• (1A) As part of the assessment referred to in paragraph (1)(b), the trustees or managers of a specified scheme other than a collective money purchase scheme (see paragraph (5)) must assess—

• (a) the charges and transaction costs borne by members of the scheme by comparison with the charges and transaction costs borne by members of at least three schemes (“comparison schemes”)—

• (i) each of which satisfies one of the conditions in paragraph (1D)(a), and

• (ii) at least one of which satisfies the condition in paragraph (1D)(b),

• (b) the return on investments by comparison with the return on investments for each of the three comparison schemes, relating to—

• (i) the default arrangement, and

• (ii) any funds—

• (aa) which members are now able to select or were in the past able to select, and

• (bb) in which assets relating to members are invested,

and in each case the return on investments is to be calculated after deduction of any charges or transaction costs, and

• (c) how the administrative and governance criteria set out in paragraph (1C) are met by the scheme.

• (1ZA) As part of the assessment referred to in paragraph (1)(b), the trustees of a collective money purchase scheme must assess how the administrative and governance criteria set out in paragraph (1C) are met by the scheme.

• (1B) In making the assessment required under paragraph (1)(b), the trustees or managers of the specified scheme must have regard to any guidance issued by the Secretary of State by virtue of paragraph 2 of Schedule 18 to the Pensions Act 2014 in relation to that assessment.

• (1C) The administration and governance criteria are—

• (a) the promptness and accuracy of core financial transactions;

• (b) the quality of the records kept by the trustees or managers;

• (c) the appropriateness of the default investment strategy (if any) followed by the trustees or managers;

• (ca) for a collective money purchase scheme, the appropriateness of the investment principles governing decisions about investments for the purposes of the scheme, as set out in the latest statement prepared in accordance with regulation 2 (statement of investment principles) of the Occupational Pension Schemes (Investment) Regulations 2005;

• (d) the quality of the scheme’s investment governance;

• (e) the extent to which—

• (i) the requirements of sections 247 and 248 of the Pensions Act 2004 (requirements for knowledge and understanding: individual and corporate trustees) are satisfied, and

• (ii) the trustees or managers have the knowledge, understanding and skills to enable them—

• (aa) properly to exercise their functions, and

• (bb) to operate the scheme effectively;

• (f) the quality of communication with the members of the scheme;

• (g) the effectiveness of the management of any conflicts of interest that might arise between or among trustees and managers, or between trustees, managers and third parties.

• (1D) The conditions are that—

• (a) each comparison scheme is—

• (i) an occupational pension scheme which on the relevant date held total assets equal to or greater than £100 million, or

• (ii) a personal pension scheme, which is not an investment-regulated pension scheme within the meaning of paragraph 1 of Schedule 29A to the Finance Act 2004;

• (b) the trustees or managers have had discussions with the comparison scheme on a transfer of the rights of members of the specified scheme to that scheme if the specified scheme is wound up.

• (1E) Where an occupational pension scheme provides both money purchase benefits within the meaning of section 181 of the Pension Schemes Act 1993 and benefits other than money purchase benefits—

• (b) the trustees or managers of the scheme are only required to comply with the obligations in paragraphs (1A) and (1B) in relation to the assets held for its money purchase benefits, and

• (c) the scheme may only be used as a comparison scheme in relation to the assets held for its money purchase benefits.

• (2) In this regulation (and in regulation 23), “charges” and “transaction costs” have the meanings given in regulation 2(1) of the Occupational Pension Schemes (Charges and Governance) Regulations 2015.

• (3) In relation to a scheme which is not a money purchase scheme, this regulation applies only in relation to charges and transaction costs which relate to the provision of money purchase benefits.

• (4) Paragraphs (1A) to (1E) do not apply if—

• (a) the Regulator has been notified under section 62(4) or (5) of the Pensions Act 2004 before the date on which the trustees or managers of the scheme are required to prepare a statement under regulation 23(1) (“the annual statement”) that the winding up of the scheme in question has commenced, and

• (b) the trustees or managers of the scheme explain why they are not complying with paragraph (cb) in the annual statement.

• (5) In this regulation—

• “audited accounts” means the audited accounts which the trustees are required to obtain in accordance with regulation 2 of the Occupational Pension Schemes (Requirement to obtain Audited Accounts and a Statement from the Auditor) Regulations 1996;

• “core financial transactions” has the same meaning as in regulation 24;

• “default arrangement” has the meaning given in regulation 1(2) of the Occupational Pension Schemes (Investment) Regulations 2005;

• “default investment strategy” means the default strategy referred to in regulation 2A(1)(c) of the Occupational Pension Schemes (Investment) Regulations 2005;

• “ear-marked scheme” has the meaning given by regulation 1(2) of the Occupational Pension Schemes (Requirement to obtain Audited Accounts and a Statement from the Auditor) Regulations 1996;

• “relevant date” means the date on which the trustees obtain the audited accounts for the scheme year that ended most recently;

• “specified scheme” means a relevant scheme which, on the relevant date—held total assets worth less than £100 million, andhas been operating for three or more years.

• (6) In this regulation, a reference to the “total assets” of a scheme means—

• (a) in the case of a scheme in respect of which the trustees are required to obtain audited accounts, the total of the amount of the net assets of the scheme recorded in the audited accounts for the scheme year, or

• (b) in the case of a scheme which is an ear-marked scheme, the value of the assets of the scheme represented by any policies of insurance or annuity contracts that are specifically allocated to the provision of benefits for individual members or any other person who has a right to benefits under the scheme.

CHAPTER 3 — RELEVANT MULTI-EMPLOYER SCHEMES

Annual statement regarding governance: relevant multi-employer schemes

26

Where a relevant scheme is a relevant multi-employer scheme, the statement prepared in accordance with regulation 23 must include such of the following additional information as is relevant to the scheme—

• (a) how the requirements of regulation 27(2) (majority of trustees and chair to be non-affiliated) have been met during the year;

• (b) where a trustee who is non-affiliated (within the meaning of regulations 27 and 28) was appointed during the year, details of how the requirement of regulation 28(1) (open and transparent appointment process) was met;

• (c) details of the arrangements in place during the year to meet the requirement of regulation 29 (representation of the views of members to the trustees or managers).

Appointment of trustees

27

• (1) A relevant multi-employer scheme which is a trust scheme must have at least three trustees (but see also paragraphs (4) to (7)).

• (2) A majority of the trustees of a relevant multi-employer scheme which is a trust scheme, including the chair of the trustees, must be non-affiliated (but see also paragraphs (4) to (7)).

• (2A) Paragraphs (1) and (2) override any provision of a relevant multi-employer scheme to the extent that it conflicts with those paragraphs.

• (3) Where there is a chair of the trustees at the time any other trustee is appointed, the chair must be consulted on the appointment.

• (4) In relation to a company which is not a professional trustee body and which is a trustee of a relevant multi-employer scheme, this regulation applies as if—

• (a) the company were not a trustee of the scheme; and

• (b) each individual who is a director of the company and through whom the company exercises its functions as trustee, and any professional trustee body who is a director of the company, were a trustee of the scheme.

• (5) A new relevant multi-employer scheme must meet the requirements of paragraphs (1) and (2) before the end of the period of three months starting with the date on which the scheme is established (or, if later, the date on which the scheme becomes a relevant multi-employer scheme which is a trust scheme).

• (6) Where a trustee of a relevant multi-employer scheme—

• (a) ceases to be a trustee for any reason; or

• (b) in the case of a trustee who was non-affiliated, ceases to be non-affiliated,

the requirements of paragraphs (1) and (2) must be met before the end of the period of three months starting with the date on which the former trustee ceases to be a trustee or, as the case may be, the trustee ceases to be non-affiliated.

• (7) Where a relevant multi-employer scheme was established, or became a relevant multi-employer scheme, before 6th April 2015 and the requirements of paragraphs (1) or (2) are not met on that date, the requirement in question must be met before the end of the period of three months starting with that date.

• (7A) Where a relevant multi-employer scheme was established by or under an enactment, other than a scheme established under section 67 of the Pensions Act 2008, before 6th April 2016 and the requirements of paragraphs (1) or (2) are not met on that date, the requirement in question must be met before the end of the period of six months starting with that date.

• (8) In this regulation and in regulation 28, “non-affiliated” means independent of any undertaking which provides advisory, administration, investment or other services in respect of the relevant multi-employer scheme (but see also regulation 28).

Appointment of trustees: trustees who are non-affiliated

28

• (1) The appointment process for a trustee who is to count as non-affiliated for the purposes of regulation 27(2) must be open and transparent.

• (2) For the purposes of paragraph (1), an appointment process which is open and transparent includes (but is not limited to) a process which—

• (a) includes advertisement of the vacancy for a trustee in at least one appropriate national publication;

• (b) includes engagement of the services of a recruitment agency to assist in the selection of candidates; or

• (c) meets the requirements of section 241(2) or, as the case may be, 242(2) of the 2004 Act (nomination and selection of member-nominated trustees and member-nominated directors of corporate trustees).

• (3) For the purposes of determining whether a person is non-affiliated, the following matters must be taken into account—

• (a) whether the person—

• (i) is a director, manager, partner or employee of an undertaking which provides advisory, administration, investment or other services in respect of the scheme (a “service provider”) or an undertaking which is connected to a service provider; or

• (ii) has been such a director, manager, partner or employee during the period of five years ending with the date of the person’s appointment as a trustee;

• (b) whether the person receives any payment or other benefit from a service provider, other than—

• (i) a payment or other benefit in respect of a role in the governance of a personal pension scheme in which the person is required to act in the interests of some or all of the scheme members; or

• (ii) a payment in respect of the person’s role as trustee of the relevant multi-employer scheme;

• (c) whether or not, in the person’s relationship with a service provider, the person’s obligations to the service provider conflict with their obligations as a trustee of the relevant multi-employer scheme and whether their obligations as a trustee will take priority in the case of a conflict.

• (4) A trustee who is an individual is not to count as non-affiliated for the purposes of regulation 27(2) for—

• (a) any one period of more than five years; or

• (b) subject to paragraph (5), more than ten years in total.

• (5) No period of appointment of a trustee who is an individual is to be taken into account for the purposes of paragraph (4)(b) if more than five years have elapsed since the trustee last held office as a trustee of the same relevant multi-employer scheme.

• (6) Paragraphs (1) to (5) apply to an individual who is a director of a corporate trustee and to whom regulation 27 applies as if he or she were a trustee as they apply to a trustee who is an individual.

• (7) Where a trustee who is to count as non-affiliated for the purposes of regulation 27(2) is a professional trustee body—

• (a) the trustee is not to count as non-affiliated for any one period of more than five years;

• (b) a nominated individual must act as representative of the trustee; and

• (c) the nominated individual may not act as representative of the trustee for more than ten years in total.

• (8) For the purposes of paragraph (3)(a), two undertakings are “connected” if they are—

• (a) part of a group of companies consisting of a holding company and one or more subsidiaries within the meaning of section 1159(1) of the Companies Act 2006; or

• (b) partnerships, each having the same persons as at least half of its partners.

Representation of members

29

The trustees or managers of a relevant multi-employer scheme must make arrangements to encourage members of the scheme, or their representatives, to make their views on matters relating to the scheme known to the trustees or managers.

PART6 — Governance of relevant trust schemes

CHAPTER1 — Introductory

Scope of Part 6

30

• (1) This Part applies in relation to relevant trust schemes.

• (2) A “relevant trust scheme” is an occupational pension scheme established under a trust other than—

• (a) a scheme which is not a registrable scheme (within the meaning given by section 59(2) of the 2004 Act),

• (b) an executive pension scheme,

• (c) a relevant small scheme, or

• (d) a scheme to which regulation 2(c) of the Occupational Pension Schemes (Trust and Retirement Benefits Exemption) Regulations 2005 applies.

• (3) For the purposes of this regulation “executive pension scheme” and “relevant small scheme” have the meanings they have for the purposes of the definition of “relevant scheme” (see regulation 1(2ZB)).

General interpretation

31

• (1) In this Part—

• “the 2019 Order” means the Investment Consultancy and Fiduciary Management Market Investigation Order 2019;

• “actuarial valuation” has the meaning that it has for the purposes of Part 3 of the 2004 Act (see section 224 of that Act);

• “the commencement date” means the day on which the Occupational Pension Schemes (Governance and Registration) (Amendment) Regulations 2022 come into force;

• “company” has the meaning given in section 1 of the Companies Act 2006;

• “existing IC provider” has the meaning given in regulation 34(5);

• “fund manager” has the meaning given in section 124 of the 1995 Act;

• “IC provider” has the meaning given in regulation 34(2);

• “relevant trust scheme” has the meaning given in regulation 30(2);

• “statement of investment principles” has the meaning given in section 35 of the 1995 Act;

• “the statutory funding objective” has the meaning given for the purposes of Part 3 of the 2004 Act (see section 222 of that Act);

• “trustee owned company” has the meaning given in paragraph (2).

• (2) “Trustee owned company”, in relation to a relevant trust scheme (“scheme 1”), means—

• (a) a company limited by shares in which—

• (i) a scheme 1 person holds voting shares, and

• (ii) no one other than a relevant person also holds shares, or

• (b) a company limited by guarantee of which—

• (i) a scheme 1 person is a member, and

• (iii) no one other than a relevant person is also a member.

• (3) For the purposes of paragraph (2)—

• “relevant person” means—a trustee of any occupational pension scheme, orany company which is itself a trustee owned company;

• “scheme 1 person” means—a trustee of scheme 1, ora company which is itself a trustee owned company in relation to scheme 1;

• “voting shares” means shares which carry rights to vote at general meetings of the company in question.

• (4) For the purposes of this Part, a person (“A”) is connected to another person (“B”) if A is a group undertaking in relation to B (within the meaning of section 1161(5) of the Companies Act 2006).

• (5) For the purposes of this Part, a reference to the appointment of a person in any capacity includes a reference to—

• (a) the reappointment of that person, and

• (b) the extension of that person’s term of appointment.

• (6) For the purposes of this Part, it does not matter whether any advice is given—

• (a) for the purposes of section 36 of the 1995 Act (choosing investments) or otherwise, or

• (b) in a recommendation or in guidance or otherwise.

Time at which services are provided

32

For the purposes of this Part, a person is to be taken to provide services at any time if, at that time, arrangements are in place for the provision of those services.

CHAPTER2 — Use of fiduciary management services

Duties of trustees to carry out tender process in connection with the provision of fiduciary management services by FM providers

33

The Schedule—

• (a) defines “fiduciary management services”, “FM provider” and related terms (see Part 1 of the Schedule), and

• (b) sets out the duties of trustees of relevant trust schemes in connection with the provision of fiduciary management services by FM providers (see Parts 2 and 3 of the Schedule).

CHAPTER3 — Use of investment consultancy services

Meaning of “IC provider”, “existing IC provider” and related expressions

34

• (1) This regulation defines “IC provider”, “existing IC provider” and related expressions for the purposes of this Part.

• (2) “IC provider”, in relation to a relevant trust scheme, means a person who provides investment consultancy services to the trustees of the scheme and is not—

• (a) a trustee of the scheme, or

• (b) a trustee owned company.

• (3) A person (“P”) provides investment consultancy services to the trustees of a relevant trust scheme if—

• (a) P gives advice to the trustees of the scheme on or in connection with any of the following—

• (i) the merits of—

• (aa) the exercise of any of the trustees’ powers of investment in any particular case (including the making or retaining of any investment);

• (bb) the appointment of a particular fund manager;

• (cc) strategic asset allocation;

• (dd) adopting a particular investment strategy, or

• (ii) the preparation or revision of the statement of investment principles, and

• (b) P gives that advice otherwise than in P’s capacity as a legal adviser appointed by the trustees.

• (4) Where P is an actuary, any high-level commentary given by P in, or in relation to, an actuarial valuation on the link between the statutory funding objective and the investment strategy, is not to be treated as advice for the purposes of this regulation.

• (5) “Existing IC provider”, in relation to a relevant trust scheme, means an IC provider who—

• (a) was appointed by the trustees of the scheme before the commencement date, and

• (b) continues to provide investment consultancy services to those trustees on and after that date in accordance with the terms of that appointment.

• (6) References in this Part to investment consultancy services are to be read in accordance with this regulation.

Duty to set objectives for IC providers

35

• (1) The trustees of a relevant trust scheme must set objectives for each IC provider.

• (2) The trustees must—

• (a) when setting objectives for an IC provider, have regard to the statement of investment principles, in so far as it is relevant to services provided, or to be provided, by that provider;

• (b) where the IC provider is appointed on or after the commencement date, ensure that the IC provider’s objectives are set by the end of the day on which the IC provider’s appointment takes effect.

• (3) The trustees must review and, if appropriate, revise an IC provider’s objectives—

• (a) at least every three years, and

• (b) without delay after any significant change in investment policy.

• (4) Where an existing IC provider has strategic objectives which were set, before the commencement date, under Article 12 of the 2019 Order (“the existing objectives”)—

• (a) the existing objectives are to be treated as if they had been set by the trustees under paragraph (1), and

• (b) the trustees must complete the first review of the existing objectives for the purposes of paragraph (3)(a) before the end of the period of three years beginning with the date on which those objectives were set under Article 12 of the 2019 Order.

Duty to review performance of IC providers

36

The trustees of a relevant trust scheme must, at least every 12 months, review the performance of each IC provider against the objectives set under regulation 35.

CHAPTER 4 — Compliance

Compliance notices

Compliance notice

37

• (1) The Regulator may issue a compliance notice to a person with a view to ensuring that person’s compliance with a listed provision.

• (2) The Regulator may issue a notice under paragraph (1) if it is of the opinion that the person is not complying, or has not complied, with that provision.

• (3) For the purposes of this Chapter, the listed provisions are the following provisions of this Part—

• (a) regulation 35(1) or (3);

• (b) regulation 36;

• (c) paragraph 7(1) of the Schedule;

• (d) paragraph 8(1) of the Schedule;

• (e) paragraph 9(3) of the Schedule;

• (f) paragraph 10(1) or (2) of the Schedule.

• (4) A compliance notice must—

• (a) state the listed provision which the Regulator is of the opinion was not, or is not being, complied with,

• (b) state the evidence on which that opinion is based, and

• (c) specify the steps that the Regulator requires the person to whom it is issued to take to remedy the non-compliance with that provision and, where appropriate, ensure that it is not repeated.

• (5) A step specified for the purposes of paragraph (4)(c) may be expressed to be conditional on compliance by a third party with a specified direction contained in a third party compliance notice under regulation 38.

• (6) A compliance notice may also—

• (a) specify the period within which any step must be taken;

• (b) require the person to whom it is issued to provide the Regulator within a specified period specified information relating to the non-compliance;

• (c) require the person to whom it is issued to inform the Regulator, within a specified period, of how they have complied with or are complying with the notice;

• (d) state that, if the Regulator is of the opinion that the person to whom it is issued has failed to comply with the notice, the Regulator may issue a penalty notice to them under regulation 39;

• (e) give the person to whom it is issued a choice between different ways of remedying, or preventing the recurrence of, the non-compliance.

• (7) In this regulation “specified” means specified in a compliance notice.

Third party compliance notice

38

• (1) The Regulator may issue a third party compliance notice to a person (“A”) with a view to ensuring another person (“B”)’s compliance with a listed provision if—

• (a) the Regulator is of the opinion that—

• (i) B is not complying, or has not complied, with that provision, and

• (ii) that non-compliance is, or was, wholly or partly, a result of the failure of A, and

• (b) A’s failure is not itself a contravention of any listed provision.

• (2) A third party compliance notice must—

• (a) state the listed provision which the Regulator is of the opinion was not, or is not being, complied with,

• (b) state the evidence on which that opinion is based, and

• (c) specify the steps that the Regulator requires A to take, or refrain from taking, with a view to remedying and, where appropriate, preventing a recurrence of the failure mentioned in paragraph (1)(a)(ii).

• (3) A compliance notice may also—

• (a) specify the period within which any step must be taken;

• (b) require A to provide the Regulator within a specified period specified information relating to the non-compliance;

• (c) require A to inform the Regulator, within a specified period, of how they have complied with or are complying with the notice;

• (d) state that, if the Regulator is of the opinion that A has failed to comply with the notice, the Regulator may issue a penalty notice to A under regulation 39;

• (e) give A a choice between different ways of remedying, or preventing the recurrence of, the non-compliance.

• (4) In this regulation “specified” means specified in a third party compliance notice.

Penalty notices

Penalty notices

39

• (1) The Regulator may issue a penalty notice imposing a penalty on a person where the Regulator is of the opinion that the person—

• (a) has failed to comply with a compliance notice,

• (b) has failed to comply with a third party compliance notice, or

• (c) has contravened a listed provision.

• (2) The Regulator may determine the amount of the penalty to be imposed on a person.

• (3) But the amount of the penalty imposed on a person must not—

• (a) if the person is an individual, exceed £5,000;

• (b) in any other case, exceed £50,000.

• (4) A penalty notice must—

• (a) if it is issued to the trustees of a trust scheme, be issued to all the trustees of the scheme and specify their joint and several liability for the penalty;

• (b) state the Regulator’s decision to impose a penalty;

• (c) state the reasons for that decision including—

• (i) if the notice is issued under paragraph (1)(a) or (b), the failure to which the notice relates;

• (ii) if the notice is issued under paragraph (1)(c), the provision which has been contravened;

• (d) state the amount of the penalty;

• (e) state the date by which the penalty must be paid;

• (f) state the period (if any) to which the penalty relates;

• (g) notify the person to whom the notice is issued of the right to a review under regulation 43 and the right of referral under regulation 44.

• (5) The date specified under paragraph (4)(e) must be at least four weeks after the date on which the notice is issued.

• (6) See also regulation 41 (recovery of penalty from bodies corporate and Scottish partnerships).

Penalty notices: recovery of penalty

40

• (1) Any penalty required by a penalty notice is recoverable by the Regulator.

• (2) In England and Wales, any such penalty is, if the county court so orders, recoverable under section 85 of the County Courts Act 1984 or otherwise, as if it were payable under an order of that court.

• (3) In Scotland, any such penalty is enforceable as if it were an extract registered decree arbitral bearing a warrant for execution signed by the sheriff court of any sheriffdom in Scotland.

• (4) The Regulator must pay into the Consolidated Fund any penalty recovered under this regulation.

Penalty notices: recovery of penalty from bodies corporate and Scottish partnerships

41

• (1) This regulation applies where—

• (a) a penalty under regulation 39 is recoverable from a body corporate or a Scottish partnership by reason of any act or omission of the body or partnership, and

• (b) the act or omission was done with the consent or connivance of, or is attributable to any neglect on the part of, any specified person.

• (2) Where this regulation applies, the Regulator may impose a penalty on each specified person who has consented to or connived in the act or omission, or to whose neglect the act or omission was attributable.

• (3) In this regulation “specified person”—

• (a) in relation to a body corporate, means—

• (i) a director, manager, secretary or other similar officer of the body, or a person purporting to act in any such capacity, or

• (ii) where the affairs of the body are managed by its members, a member who has management functions;

• (b) in relation to a Scottish partnership, means a partner of the partnership.

• (4) If the Regulator imposes a penalty on one or more specified persons, the Regulator—

• (a) may not also impose a penalty on the body corporate or Scottish partnership (as the case may be) in respect of the same act or omission, and

• (b) must issue the penalty notice to each specified person on whom a penalty is imposed.

• (5) The Regulator may notify the relevant body corporate or Scottish partnership of the Regulator’s decision under this regulation to impose a penalty on one or more specified persons.

Service of notices

Service of notices

42

Sections 303 to 305 of the 2004 Act (service of documents and electronic working) apply to notices issued under this Chapter as they apply to a notification given under any provision of that Act.

Review of notices

Review of notices

43

• (1) The Regulator may review a specified notice issued under these Regulations—

• (a) on an application, in writing, from the person to whom the notice was issued (“the applicant”), or

• (b) otherwise, if the Regulator considers it appropriate to do so.

• (2) In this regulation “specified notice” means—

• (a) a compliance notice,

• (b) a third party compliance notice, or

• (c) a penalty notice.

• (3) An application for a review of a specified notice must be made by the applicant before the end of the period of 28 days beginning with the day on which the notice was issued to the applicant.

• (4) The Regulator may review a notice under paragraph (1)(b) at any time before the end of the period of 18 months beginning with the day on which the notice was issued to the applicant.

• (5) On a review of a notice, the effect of the penalty notice is suspended for the period—

• (a) beginning with the day on which the Regulator determines to carry out the review, and

• (b) ending with the day on which the review is completed.

• (6) In carrying out the review, the Regulator must consider any representations made by the applicant.

• (7) On a review under this regulation, the Regulator may—

• (a) confirm the notice,

• (b) vary the notice,

• (c) revoke the notice, or

• (d) substitute a different notice.

References to the Upper Tribunal

Reference to the Upper Tribunal

44

• (1) A person to whom a penalty notice is issued (“the applicant”) may, if one of the conditions in paragraph (2) is satisfied, make a reference to the Upper Tribunal (“the Tribunal”) in respect of—

• (a) the issue of the notice;

• (b) the amount of the penalty imposed under the notice.

• (2) The conditions are—

• (a) the Regulator has completed a review of the notice under regulation 43;

• (b) the applicant made an application for a review under regulation 43(1)(a) but the Regulator determined not to carry out such a review.

• (3) On a reference under this regulation, the effect of the notice is suspended for the period—

• (a) beginning with the day on which the Tribunal receives the notice of the reference, and

• (b) ending with the relevant day.

• (4) For the purposes of paragraph (3) “the relevant day” is—

• (a) if the applicant withdraws the reference, the day on which it is withdrawn;

• (b) if the reference is made out of time and the Tribunal determines not to allow the reference to proceed, the day on which that determination is made;

• (c) otherwise, the day on which the reference is completed.

• (5) A reference is completed when—

• (a) the reference has been determined, and

• (b) the Tribunal has remitted the matter to the Regulator.

SCHEDULE — Duties of trustees of relevant trust schemes in connection with provision of FM services

PART1 — Introductory

Scope

1

This Schedule sets out the duties of the trustees of a relevant trust scheme in respect of the carrying out of qualifying tender processes in connection with the provision of fiduciary management services.

General Interpretation

2

In this Schedule—

• “the AMT” means the asset management threshold (see paragraph 4);

• “competitive tender process” has the meaning given in Article 2.1 of the 2019 Order, as it had effect immediately before the commencement date;

• “continuing in-scope FM provider” has the meaning given in paragraph 3(12);