Valid from 04/12/2005
(1)Section 36 of the Pensions Act 1995 (c. 26) (choosing investments) is amended as follows.
(2)For subsection (1) substitute—
“(1)The trustees of a trust scheme must exercise their powers of investment in accordance with regulations and in accordance with subsections (3) and (4), and any fund manager to whom any discretion has been delegated under section 34 must exercise the discretion in accordance with regulations.
(1A)Regulations under subsection (1) may, in particular—
(a)specify criteria to be applied in choosing investments, and
(b)require diversification of investments.”
(3)Omit subsection (2).
(4)In subsection (3) for “the matters mentioned in subsection (2) and” substitute “ the requirements of regulations under subsection (1), so far as relating to the suitability of investments, and to ”.
(5)For subsection (8) substitute—
“(8)If the trustees of a trust scheme—
(a)fail to comply with regulations under subsection (1), or
(b)do not obtain and consider advice in accordance with this section,
section 10 applies to any trustee who has failed to take all reasonable steps to secure compliance.”
(6)After subsection (8) insert—
“(9)Regulations may exclude the application of any of the preceding provisions of this section to any scheme which is of a prescribed description.”