The Occupational Pension Schemes (Scheme Administration) Regulations 1996

[F1 PART 3 E+W+S Duties of trustees of relevant trust schemes which meet the asset management threshold on or after the commencement date

Textual Amendments

F1 Sch. inserted (1.10.2022) by The Occupational Pension Schemes (Governance and Registration) (Amendment) Regulations 2022 (S.I. 2022/825), reg. 1(2), Sch.

Duty of trustees of a relevant scheme to carry out a qualifying tender process in connection with appointment, or change to the mandate, of an in-scope FM provider E+W+S

8.— (1) The trustees of a relevant trust scheme must carry out, or have had carried out on their behalf, a qualifying tender process before—

(a) appointing a person as an in-scope FM provider, or

(b) increasing the amount of manageable assets managed by an in-scope FM provider.

(2) But the duty in sub-paragraph (1) applies only if sub-paragraph (3) or (4) applies.

(3) This sub-paragraph applies where—

(a) the scheme does not already meet the AMT but would meet the AMT if the appointment or increase were made, and

(b) the trustees are not a contracting authority for the purposes of the Public Contracts Regulations 2015 (“the PC Regulations”) or the Public Contracts (Scotland) Regulations 2015 (“the PCS Regulations”).

(4) This sub-paragraph applies where—

(a) the trustees are a contracting authority for the purposes of the PC Regulations or the PCS Regulations,

(b) the relevant FM provider will not be, or was not, appointed following a procurement carried out in accordance with the PC Regulations or, as the case may be, under the PCS Regulations, and

(c) either—

(i) the scheme does not already meet the AMT but would meet the AMT if the appointment or increase were made, or

(ii) if the scheme already meets the AMT, the appointment or increase would be the first to be made since the AMT was last met following the appointment of an FM provider, or an increase in the amount of assets managed by an FM provider, who was appointed as a result of a procurement carried out in accordance with the PC Regulations or, as the case may be, under the PCS Regulations.

(5) For the purposes of sub-paragraph (4)(c)(ii), where any other appointment or increase is proposed to be made at the same time as the relevant appointment or increase, those appointments or increases (or both) are to be treated as a single appointment for the purposes of determining whether the requirement that the appointment or increase (as the case may be) would be the first to be made since the AMT was last met.

Duty of the trustees to carry out a qualifying tender process in respect of arrangements with existing FM providers not appointed following a relevant tender process E+W+S

9.— (1) This paragraph applies where—

(a) a relevant trust scheme has one or more NRP FM providers, and

(b) the duty in paragraph 8(1) is triggered by the proposed appointment of another in-scope FM provider or increase in the amount of assets managed by another in-scope FM provider.

(2) In this Schedule “NRP FM provider” means an in-scope FM provider who was not appointed following a relevant tender process.

(3) The trustees must carry out a qualifying tender process, or arrange for such a process to be carried out on their behalf, in respect of the relevant services provided under the existing arrangements with each of their NRP FM providers at the same time as the tender under paragraph 8(1) is carried out by them or on their behalf.

(4) But the duty in sub-paragraph (3) does not apply in respect of any arrangements in relation to which the duty in paragraph 7(1) applies.

Notification to FM providers E+W+S

10.— (1) The trustees of a relevant trust scheme must give a tender completion notice to any in-scope FM provider who is—

(a) appointed on or after the commencement date, or

(b) given authority to manage additional manageable assets on or after that date.

(2) The trustees of a relevant trust scheme must also give a tender completion notice to any NRP FM provider who is to continue to provide fiduciary management services under their existing arrangements with the trustees following a qualifying tender process under paragraph 9(3) in respect of those services.

(3) A “tender completion notice” is a notice in writing which states that—

(a) where sub-paragraph (1) applies, either—

(i) the appointment or increase is made following the carrying out of a qualifying tender process under paragraph 8, or

(ii) no such tender was required before the appointment or increase was made;

(b) where sub-paragraph (2) applies, a qualifying tender process has been carried out under paragraph 9 in respect of the fiduciary management services provided under the existing arrangements with the relevant FM provider.]