Finance Act 2004

266 Transfers to insured schemes

(1) This section applies where sums held for the purposes of, or representing accrued rights under, a registered pension scheme (“the transferor scheme”) are transferred so as to become held for the purposes of, or to represent rights under, a registered pension scheme that is an insured scheme (“the transferee scheme”).

(2) The scheme administrator of the transferor scheme is liable to a penalty not exceeding £3,000 unless the sums are transferred either to the scheme administrator of the transferee scheme or to a relevant insurance company.

(3) In this section—

• “insured scheme” means a pension scheme all the income and other assets of which are invested in policies of insurance, and

• “relevant insurance company” means an insurance company that issued any of the policies of insurance.