PART 2RESTRICTIONS ON CHARGES
F1CHAPTER 1DEFAULT ARRANGEMENTS, F2qualifying collective money purchase schemes, NON-CONTRIBUTING MEMBERS AND PAYMENTS TO ADVISERS
Words in Pt. 2 Ch. 1 heading inserted (1.8.2022) by The Occupational Pension Schemes (Collective Money Purchase Schemes) Regulations 2022 (S.I. 2022/255), reg. 1(3), Sch. 7 para. 7
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.
Ch. 1: reg. 4-13 renumbered as Ch. 1 (1.10.2017) by The Occupational Pension Schemes (Charges and Governance) (Amendment) Regulations 2017 (S.I. 2017/774), regs. 1, 4