The Stakeholder Pension Schemes Regulations 2000

Requirement for trustees or manager to satisfy certain conditions in relation to with-profit funds E+W+S

15.—(1) Where all or any of a stakeholder pension scheme’s assets are invested in a with-profits fund it shall, for the purposes of section 1(1)(b), be a condition of the scheme being a stakeholder pension scheme that the requirements of this regulation are complied with.

(2) A stakeholder pension scheme shall not invest any assets in a with-profits fund that includes non-stakeholder pension scheme assets.

(3) Prior to entering into any agreement whereby any assets of the scheme will be invested in a with-profits fund, the trustees or manager of that scheme shall take such steps as are necessary to ensure that they obtain a written contract from the [F1 insurer] maintaining the with-profits fund which provides that the [F1 insurer] will, in respect of any period that the stakeholder pension scheme has assets invested in the with-profits fund—

(a) provide such information to the trustees or manager of the stakeholder pension scheme as is necessary to allow the trustees or manager to operate in compliance with the requirements of regulations 13 or 14;

(b) ensure that members of the stakeholder pension scheme will not be treated less favourably than any other members of stakeholder pension schemes who may have assets invested in the with-profits fund;

(c) provide to the trustees or manager of the stakeholder pension scheme any certificates from the auditor and actuary to the [F2 insurer] that are necessary to allow the [F3 trustees or manager to make the declaration mentioned in regulation 12(2)(a)];

(d) ensure that no investments are made in the fund other than the investment of stakeholder pension scheme assets; and

(e) take such steps as are necessary to comply with paragraph (4).

(4) The [F4 insurer] must, at least annually, provide the trustees or manager of the stakeholder pension scheme with a certificate from F5 ... the F6 ... actuary to the [F4 insurer] certifying that the [F4 insurer] has [F7 systems which and controls which are of a design such that, and used such that]—

(a) proper accounting records are maintained in respect of all income and expenditure relevant to regulations 13[F8 , 14 and 14B] and the terms of the contract referred to in paragraph (3);

(b) the records referred to in sub-paragraph (a) are provided [F9 to the auditor of the scheme if requested by the auditor, trustees or manager] ;

(c) no expenditure is charged to the with-profits fund where that expenditure would be contrary to the requirements of regulation 13 or 14; and

(d) the terms of the contract referred to in paragraph (3) have been complied with.

(5) Where the [F4 insurer] does not comply with the agreement referred to in paragraph (3), the trustees or manager must take such steps as are necessary to ensure that the [F4 insurer] does so comply.

[F10 (6) In this regulation the “actuary to the insurer” means a person appointed to perform, in relation to the insurer, either or both of the functions specified in paragraph 4.3.1 of the Supervision Sourcebook made by the Prudential Regulation Authority under the Financial Services and Markets Act 2000.]

Textual Amendments

F1 Word in reg. 15(3) substituted (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 595(4)

F2 Word in reg. 15(3)(c) substituted (6.4.2005) by The Stakeholder Pension Schemes (Amendment) Regulations 2005 (S.I. 2005/577), regs. 1(1), 8(2)

F3 Words in reg. 15(3)(c) substituted (9.9.2002) by The Stakeholder Pension Schemes (Amendment No. 2) Regulations 2002 (S.I. 2002/2098), regs. 1(1), 5(2)

F4 Word in reg. 15(4)(5) substituted (3.7.2002) by The Financial Services and Markets Act 2000 (Consequential Amendments) Order 2002 (S.I. 2002/1555), arts. 1, 40(3)

F5 Words in reg. 15(4) omitted (5.4.2001) by virtue of The Stakeholder Pension Schemes (Amendment) (No.2) Regulations 2001 (S.I. 2001/934), regs. 1(1), 11(3)(a)

F6 Word in reg. 15(4) omitted (6.4.2005) by virtue of The Stakeholder Pension Schemes (Amendment) Regulations 2005 (S.I. 2005/577), regs. 1(1), 8(3)

F7 Words in reg. 15(4) substituted (5.4.2001) by The Stakeholder Pension Schemes (Amendment) (No.2) Regulations 2001 (S.I. 2001/934), regs. 1(1), 11(3)(b)

F8 Words in reg. 15(4)(a) substituted (6.4.2005) by The Stakeholder Pension Schemes (Amendment) Regulations 2005 (S.I. 2005/577), regs. 1(1), 7(3)(b)

F9 Words in reg. 15(4)(b) substituted (9.9.2002) by The Stakeholder Pension Schemes (Amendment No. 2) Regulations 2002 (S.I. 2002/2098), regs. 1(1), 5(3)

F10 Reg. 15(6) substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), Sch. 2 para. 31(b)