PART 1Collective money purchase benefits

Authorisation criteria

11Fit 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 collective money purchase scheme are fit and proper persons (see section 9(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 provisions of the scheme;

e

a person acting in a capacity specified in regulations made by the Secretary of State.

3

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 matters relating to a person connected with that person.

4

Regulations under subsection (3)(a) may include provision requiring specified information to be provided to the Pensions Regulator.

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 provisions of the scheme 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 in section 435 of the Insolvency Act 1986;

  • “director” and “shadow director” have the meaning given in section 251 of that Act.

7

Regulations under subsection (3)(a) are subject to affirmative resolution procedure.

8

Regulations under subsection (2)(e) are subject to negative resolution procedure.