PART 2RESTRICTIONS ON CHARGES

F1CHAPTER 1DEFAULT ARRANGEMENTS, F2qualifying collective money purchase schemes, NON-CONTRIBUTING MEMBERS AND PAYMENTS TO ADVISERS

Annotations:

Prohibited charge structures F3- default arrangements5

1

The description of the charges which are prohibited under regulation 4(1)(b) are charges under a charge structure other than—

a

a single charge structure; or

b

a combination charge structure.

2

In these Regulations, a single charge structure is one under which the charges imposed on the member are calculated solely by reference to the value of the member's rights under the scheme.

3

In these Regulations, a combination charge structure is one under which charges are calculated by reference to the value of the member's rights under the scheme (‘an existing rights charge’) and either—

a

calculated as a percentage of the value of contributions (‘a contribution percentage charge’); or

b

calculated by reference to a period of time and not by reference to contributions or to the value of a member's rights under the scheme (‘a flat fee charge’).

4

For the purposes of regulation 4(1)(b), neither the charge structure, nor the type of combination charge structure, that applies to a member may be changed during a charges year.