The Stakeholder Pension Schemes (Amendment) (No.2) Regulations 2001

Amendment of regulation 12 E+W+S

8.—(1) Regulation 12 (requirement for annual declaration) shall be amended as follows.

(2) In paragraph (2)—

(a) after “ending on” insert “ and including ”; and

(b) for sub-paragraphs (a) to (d) substitute—

“(a) a statement that the trustees or manager are responsible for ensuring—

(i) that there are in place; and

(ii) proper use of,

systems which and controls which ensure the proper administration of the scheme;

(b) a statement describing each of the—

(i) principal systems; and

(ii) principal controls,

designed to ensure the proper administration of the scheme and which were in place for all or any part of the period in relation to which the declaration is made (whether put in place during or prior to that period);

(c) a statement, in relation to each of those principal systems and principal controls, of which particular aspect of the proper administration of the scheme that system or control was designed to ensure;

(d) a statement that the (not merely the principal) systems designed as mentioned in sub-paragraph (b) and in place as so mentioned, and controls so designed and so in place, were overall of a design such that, and used such that, they provide reasonable assurance—

(i) in relation to each of those systems and controls, that there has been ensured that particular aspect of the proper administration of the scheme which that system or control was designed to ensure; and

(ii) that the statement made under sub-paragraph (e) is true;

(e) a statement—

(i) that regulations 13 and 14 of these Regulations have been complied with in relation to the scheme;

(ii) that transactions for the purposes of the scheme in securities, property or other assets occur at a fair market value;

(iii) that the value of members’ rights has been determined in accordance with the provisions in the instruments establishing the scheme; and

(iv) that adequate accounts and records have been maintained for the purposes of providing to members the statement required by regulation 18(2) of these Regulations; and

(f) a statement that the conditions mentioned in section 1(1) were fulfilled.”.

(3) Omit paragraph (4).

(4) In paragraph (5)—

(a) for “In the case of a scheme not established under a trust, the manager shall” substitute “ The trustees or manager shall ”; and

(b) for sub-paragraphs (a) and (b) substitute—

“(a) a statement—

(i) as to whether, in the opinion of the reporting accountant, it was or was not reasonable for the trustees or manager to make the statements mentioned in paragraph (2)(b) and (d) and contained in the declaration;

(ii) so far as the reporting accountant is unable to express such an opinion, explaining why he is unable to do so; and

(b) a statement containing a summary—

(i) of the tests performed by the reporting accountant for the purposes of his making the statement mentioned in sub-paragraph (a); and

(ii) of the results of those tests.”.

(5) In each of paragraphs (6) and (7)—

(a) for “statement” substitute “ statements ”; and

(b) omit “(4) or”.

(6) After paragraph (7) insert—

“(8) If either or both of the statements to be obtained by the trustees or manager under paragraph (5) are obtained by them or him from the reporting accountant acting as such while ineligible in contravention of regulation 11(7A)(a)—

(a) the trustees or manager, as the case may be, shall not be regarded as having complied with paragraph (5); and

(b) for the purposes of paragraphs (6) and (7), neither statement shall be regarded as obtained in accordance with paragraph (5).”.