2A.—(1) The trustees or managers of a relevant scheme must prepare a statement of the investment principles governing decisions about investments for the purposes of the default arrangement, and that statement must be in writing and must cover at least the following matters—
(a)the aims and objectives of the trustees or managers in respect of such investments;
(b)their policies in relation to the matters mentioned in regulation 2(3)(b) [F2and, if that scheme has 100 or more members, regulation 2(3)(c) and (d)] in respect of the default arrangement; and
(c)an explanation of how the aims and objectives mentioned in sub-paragraph (a) and the policies mentioned in sub-paragraph (b) (together “the default strategy”) are intended to ensure that assets are invested in the best interests of the group of persons consisting of relevant members and relevant beneficiaries.
(2) The trustees or managers must review both the default strategy and the performance of the default arrangement—
(a)at least every three years; and
(b)without delay after any significant change in—
(i)investment policy; or
(ii)the demographic profile of relevant members.
(3) The trustees or managers must, in particular, review the extent to which the return on investments relating to the default arrangement (after deduction of any charges relating to those investments) is consistent with the aims and objectives of the trustees or managers in respect of the default arrangement.
(4) The trustees or managers must revise the statement prepared in accordance with paragraph (1) after every review unless they decide that no action is needed as a result of the review in paragraph (3).
(5) For the purposes of this regulation and regulation 4A, a person is a relevant member or a relevant beneficiary if assets relating to that member or, as the case may be, that beneficiary (as defined in regulation 4), are invested in the default arrangement.]
Textual Amendments
F1Reg. 2A inserted (6.4.2015) by The Occupational Pension Schemes (Charges and Governance) Regulations 2015 (S.I. 2015/879), regs. 1(2), 20(b)
F2Words in reg. 2A(1)(b) inserted by S.I. 2018/988, reg. 4(3) (as substituted) (1.10.2019) by The Occupational Pension Schemes (Investment and Disclosure) (Amendment) Regulations 2019 (S.I. 2019/982), regs. 1(2), 4(2)(b) (with reg. 5)