PART 2RESTRICTIONS ON CHARGES

F1CHAPTER 1DEFAULT ARRANGEMENTS, NON-CONTRIBUTING MEMBERS AND PAYMENTS TO ADVISERS

Annotations:
Amendments (Textual)

Member agreement for services9

1

Subject to paragraph (3), the restrictions in regulation 4 do not apply in relation to F2advice or a service for which the member has entered into an agreement with a person for the provision of that F3advice or service, provided the conditions in paragraph (2) are satisfied.

2

The conditions referred to in paragraph (1) are that the agreement must—

a

be in writing; and

b

include a statement that entering into the agreement—

i

is not a condition of becoming or remaining a member of a relevant scheme;

ii

is not a condition of the member's contributions being allocated under a default arrangement; and

iii

will incur charges at a rate or of an amount specified in the agreement and that such charges may be higher than would otherwise be permitted under these Regulations;

c

be entered into before the charges are imposed.

3

This regulation does not apply to F4advice or a service which—

a

the provider is under a statutory obligation to provide; or

b

is a core service.

4

In this regulation “core service” includes (but is not limited to)—

a

designing and implementing an investment strategy;

b

investment of contributions to the scheme;

c

holding investments relating to scheme members;

d

a transfer out of a default arrangement into a different arrangement, fund or scheme;

e

a transfer into a default arrangement.