Part 1Master Trusts
Authorisation criteria
7Fit and proper persons requirement
1
This section applies for the purposes of enabling the Pensions Regulator to decide whether it is satisfied that the persons involved in a Master Trust scheme are fit and proper persons (see section 5(3)(a)).
2
The Pensions Regulator must assess whether each of the following is a fit and proper person to act in relation to the scheme in the capacity mentioned—
a
a person who establishes the scheme;
b
a trustee;
c
a person who (alone or with others) has power to appoint or remove a trustee;
d
a person who (alone or with others) has power to vary the terms of the trust under which the scheme is established (where the scheme is established under a trust);
e
a person who (alone or with others) has power to vary the scheme (where the scheme is not established under a trust);
f
a scheme funder;
g
a scheme strategist;
h
a person acting in a capacity specified in regulations made by the Secretary of State.
3
The Pensions Regulator may also assess whether each of the following is a fit and proper person to act in relation to the scheme in the capacity mentioned—
a
a person who promotes or markets the scheme;
b
a person acting in a capacity specified in regulations made by the Secretary of State.
4
In assessing whether a person is a fit and proper person to act in a particular capacity, the Pensions Regulator—
a
must take into account any matters specified in regulations made by the Secretary of State, and
b
may take into account such other matters as it considers appropriate (including, in particular, matters relating to a person connected with that person).
5
For the purposes of this section a person (“A”) is connected with another person (“B”) if—
a
A is an associate of B;
b
where B is a company, A is a director or shadow director of B or an associate of a director or shadow director of B;
c
A is a trustee of an occupational pension scheme established under a trust and—
i
the beneficiaries of the trust include B or an associate of B, or
ii
the terms of the trust confer a power that may be exercised for the benefit of B or an associate of B.
6
In this section—
“associate” has the meaning given by section 435 of the Insolvency Act 1986;
“director” and “shadow director” have the meanings given by section 251 of that Act.
7
The first regulations that are made under subsection (4) are subject to affirmative resolution procedure.
8
Any subsequent regulations under subsection (4), and regulations under subsections (2) and (3), are subject to negative resolution procedure.