The Financial Services Act 1986 (Single Property Schemes) (Exemption) Regulations 1989

Trust based schemes: retirement or replacement of trustee or operator

13.  The terms of a trust based scheme must provide that–

(a) except when the trustee is obliged to retire by virtue of those terms of the scheme described in sub-paragraph (b) below, the trustee may not retire unless he is to be replaced by a person of the kind described in regulation 6(2)(a);

(b) if–

(i) the trustee’s retirement is approved or required by a majority representing 75% in number of the units held by the participants present and voting at a meeting called for that purpose in accordance with the provisions of the trust deed; or

(ii) he ceases to be independent of the operator,

he must, as soon as is reasonably practicable, retire and be replaced by a person of the kind described in regulation 6(2)(a) who has been selected by the operator;

(c) except when the operator becomes obliged to retire by virtue of those terms of the scheme described in sub-paragraph (d), (e) or (f) below, the operator may not retire unless he is to be replaced by a person of the kind described in regulation 6(2)(b)(i) and (ii) approved by the trustee;

(d) the operator must retire if either–

(i) the operator’s retirement is approved or required by a majority representing 75% in number of the units held by the participants present and voting in person or by proxy at a meeting called for that purpose in accordance with the provisions of the trust deed; or

(ii) the trustee has given the operator notice in writing that his retirement is required by reason of his having seriously defaulted in an obligation imposed on him under the trust deed;

(e) the operator must retire if he has ceased to be an authorised person; and

(f) the operator must retire if he has become subject to a prohibition of the kind described in regulation 3(1)(c).