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There are currently no known outstanding effects for the The Stakeholder Pension Schemes Regulations 2000, Section 10.
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10.—(1) Subject to paragraph (2), for the purposes of section 1(1)(b), it shall be a condition of a scheme being a stakeholder pension scheme that the requirements of this regulation are complied with.
(2) This regulation does not apply to a scheme established under a trust.
(3) The manager of the scheme, and any person managing funds held for the purposes of the scheme, must, in investing such funds or in selecting investment options offered to members of the scheme, have regard to—
(a)the need for diversification of investments, in so far as appropriate to the circumstances of the scheme; and
(b)the suitability for the purposes of the scheme of any investment or investment option proposed.
(4) The manager of the scheme, and any person managing funds held for the purposes of the scheme, must, before making any investment or selecting any investment option for the purposes of the scheme, obtain and consider proper advice as to whether the investment [F1or investment option] is satisfactory having regard to the matters mentioned in paragraph (3) and the principles contained in the statement under regulation 9.
[F2(4A) The manager of the scheme, and any person managing funds held for the purposes of the scheme, must, if retaining any investment or investment option for the purposes of the scheme—
(a)determine at what intervals the circumstances, and in particular the nature of the investment or investment option, make it desirable to obtain and consider in relation to that investment or investment option such advice as is mentioned in paragraph (4); and
(b)obtain and consider such advice accordingly.]
(5) [F3For the purposes of this regulation]“proper advice" means—
[F4(a)where the giving of advice constitutes a regulated activity of advising on investments (or would constitute such a regulated activity but for the identity of the person carrying on that activity), advice given by a person who may give that advice without contravening the prohibition imposed by section 19 of the Financial Services and Markets Act 2000;]
(b)in any other case, the advice of a person whom the manager or person managing funds held for the purposes of the scheme reasonably believes to be qualified by his ability in and practical experience of financial matters and to have the appropriate knowledge and experience of the management of the investments of pension schemes.
[F5(5A) Paragraph (5)(a) must be read with—
(a)section 22 of the Financial Services and Markets Act 2000;
(b)any relevant order under that section; and
(c)Schedule 2 to that Act.]
(6) [F6Paragraphs (4) and (4A)(b) do not apply] to the extent that the manager or the person managing the scheme’s funds is a person who may [F7himself] give proper advice.
(7) To the extent that paragraph (4) [F8or (4A)(b)] is disapplied by virtue of paragraph (6), the manager or person managing the scheme’s funds, being [F9 a person who may himself give proper advice—
(a)must—
(i)before making any investment or selecting any investment option for the purposes of the scheme, consider; and
(ii)if so retaining any investment or investment option, consider at such intervals as are determined by him in relation to that investment or investment option under paragraph (4A)(a),
whether the investment or investment option is satisfactory having regard to the matters mentioned in paragraph (3) and the principles contained in the statement under regulation 9; and
(b)must record in writing the reasons why he considers that any—
(i)investment he makes or retains; or
(ii)investment option he selects or retains,
is satisfactory having regard to those matters and principles.]
[F10(8) No person shall be regarded as having complied with—
(a)paragraph (4) unless the advice to be obtained and considered by him under that paragraph is given or (by the giver of the advice) confirmed in writing;
(b)paragraph (4A)(a) unless the determination to be made by him under that paragraph is recorded by him in writing;
(c)paragraph (4A)(b) unless the advice to be obtained and considered by him under that paragraph is given or (by the giver of the advice) confirmed in writing.]
Textual Amendments
F1Words in reg. 10(4) inserted (5.4.2001) by The Stakeholder Pension Schemes (Amendment) (No.2) Regulations 2001 (S.I. 2001/934), regs. 1(1), 6(2)
F2Reg. 10(4A) inserted (5.4.2001) by The Stakeholder Pension Schemes (Amendment) (No.2) Regulations 2001 (S.I. 2001/934), regs. 1(1), 6(3)
F3Words in reg. 10(5) substituted (5.4.2001) by The Stakeholder Pension Schemes (Amendment) (No.2) Regulations 2001 (S.I. 2001/934), regs. 1(1), 6(4)
F4Reg. 10(5)(a) substituted (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 597(1)
F5Reg. 10(5A) inserted (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 597(2)
F6Words in reg. 10(6) substituted (5.4.2001) by The Stakeholder Pension Schemes (Amendment) (No.2) Regulations 2001 (S.I. 2001/934), regs. 1(1), 6(5)(a)
F7Word in reg. 10(6) substituted (5.4.2001) by The Stakeholder Pension Schemes (Amendment) (No.2) Regulations 2001 (S.I. 2001/934), regs. 1(1), 6(5)(b)
F8Words in reg. 10(7) inserted (5.4.2001) by The Stakeholder Pension Schemes (Amendment) (No.2) Regulations 2001 (S.I. 2001/934), regs. 1(1), 6(6)(a)
F9Words in reg. 10(7) substituted (5.4.2001) by The Stakeholder Pension Schemes (Amendment) (No.2) Regulations 2001 (S.I. 2001/934), regs. 1(1), 6(6)(b)
F10Reg. 10(8) substituted (5.4.2001) by The Stakeholder Pension Schemes (Amendment) (No.2) Regulations 2001 (S.I. 2001/934), regs. 1(1), 6(7)
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