PART 2U.K.RESTRICTIONS ON CHARGES

[F1CHAPTER 1U.K.DEFAULT ARRANGEMENTS, NON-CONTRIBUTING MEMBERS AND PAYMENTS TO ADVISERS

Textual Amendments

Restrictions on chargesU.K.

4.—(1) Subject to regulations 9 and 10, the trustees or managers of a relevant scheme must not impose or permit to be imposed on a member of that scheme to whom [F2this Chapter] applies charges which—

(a)exceed the limits specified in [F2this Chapter]; or

(b)are of a description prohibited by [F2this Chapter][F3, with the exception of regulation 11A].

[F4(1A) Subject to regulation 11C, a service provider must not impose or permit to be imposed on a member to whom regulation 11A applies charges which are of a description prohibited by that regulation.]

(2) With the exception of [F5regulations 11 and 11A], [F6this Chapter] applies—

(a)to a member of a relevant scheme to the extent of the value of that member's rights under a default arrangement; and

(b)beginning with the date on which the first contribution to the default arrangement referred to in sub-paragraph (a) is received by the trustees or managers on or after the date on which this regulation comes into force.]

[F7(3) The application of this regulation and regulations 5 to 9 in respect of the value of a member’s rights is not affected by—

(a)a transfer of those rights from one relevant scheme to another; or

(b)a subsequent transfer of those rights from one arrangement to another within the receiving scheme,

where the member has not given consent to the transfer.

(4) This Chapter does not apply to a member of a relevant scheme to the extent of the value of that member’s rights in an arrangement (“Arrangement A”) where—

(a)the value of the rights has been transferred to Arrangement A from an arrangement which is not a default arrangement;

(b)the member has not given consent to the transfer;

(c)before the transfer took place, Arrangement A was not a default arrangement; and

(d)the member has, in the 5 years ending with the date of the transfer, expressed a choice as to where his or her contributions were allocated.]

Textual Amendments