PART 2RESTRICTIONS ON CHARGES

F1CHAPTER 1

Default arrangements, F5qualifying collective money purchase schemes, non-contributing members and payments to advisers

Annotations:
Amendments (Textual)

Member agreement for services9

1

Subject to paragraph (3), F6in the case of a member of a relevant scheme (that is not a collective money purchase scheme), the restrictions in regulation 4 do not apply in relation to F2advice or a service for which the member has entered into an agreement with a person for the provision of that F3advice or service, provided the conditions in paragraph (2) are satisfied.

F71A

Subject to paragraph (3), in the case of the members of a relevant scheme (that is a qualifying collective money purchase scheme), the restrictions in regulation 4 (with the exception of regulation 4(1A)) do not apply in relation to advice or a service for which a member has entered into an agreement with a person for the provision of that advice or service, provided the conditions in paragraph (2) are satisfied.

2

The conditions referred to in F8paragraphs (1) and (1A) are that the agreement must—

a

be in writing;

b

include a statement that entering into the agreement—

i

is not a condition of becoming or remaining a member of a relevant scheme;

ii

is not a condition of the member's contributions being allocated under a default arrangement F9or under a qualifying collective money purchase scheme, as applicable, and

iii

shall incur charges at a rate or of an amount specified in the agreement and that such charges may be higher than would otherwise be permitted under these Regulations;

c

be entered into before the charges are imposed.

3

This regulation does not apply to F4advice or a service which—

a

the provider is under a statutory obligation to provide, or

b

is a core service.

4

In this regulation, “core service” includes (but is not limited to)—

a

designing and implementing an investment strategy;

b

investment of contributions to the scheme;

c

holding investments relating to scheme members;

d

a transfer out of a default arrangement into a different arrangement, fund or scheme;

e

a transfer into a default F10arrangement;

F11f

a transfer out of a qualifying collective money purchase scheme into a different scheme;

g

a transfer into a qualifying collective money purchase scheme.