3.—(1) For the purposes of this Order a scheme is a relevant scheme if it is an occupational pension scheme of a kind described in paragraph (2) or (3) below.
(2) A scheme falls within this paragraph if—
(a)it is constituted under an irrevocable trust;
(b)it has no more than twelve relevant members;
(c)all relevant members, other than any relevant member who is unfit to or incapable of acting as a trustee of the scheme, are trustees of it; and
(d)all decisions, or all day to day decisions, relating to the management of assets of the scheme which are investments are required to be taken by all, or a majority of, relevant members who are trustees of the scheme or by a person of the kind described in section 191(2)(a), (b) or (c) of the Act acting either alone or jointly with all, or a majority of, relevant members who are trustees.
(3) A scheme falls within this paragraph if—
(a)it has no more than 50 members;
(b)the contributions made by or in respect of each member of the scheme are used in the acquisition of a contract of insurance on the life of that member or of a contract to pay an annuity on that life;
(c)the only decision of a kind referred to in section 191(2) of the Act is the selection of such contracts; and
(d)each member is given the opportunity to select the contract which contributions made by or in respect of him will be used to acquire.