Administration chargesI125

F11

The administration charges that apply in relation to members of a Master Trust scheme must not include—

a

costs incurred as a result of buying, selling, lending or borrowing investments;

b

where a court order provides for the recovery by the trustees of costs incurred in complying with the order, the amount of those costs;

c

charges permitted by regulations made under section 24 or 41 of the Welfare Reform and Pensions Act 199932 (charges by pension arrangements in relation to earmarking orders and charges in respect of pension sharing costs);

d

costs solely associated with the provision of death benefitsF2;

e

costs solely attributable to holding physical assets.

F32

For the purposes of this regulation, the costs solely attributable to holding a physical asset include—

a

the costs of managing and maintaining the asset;

b

fees for valuing the asset;

c

the cost of insuring the asset;

d

ground rent, charges, rates, taxes and utilities bills incurred in relation to the asset.

F33

In this regulation—

a

commodity” means any goods of a fungible nature that are capable of being delivered, including metals and their ores and alloys, agricultural products and energy such as electricity, but not including cash or financial instruments (within the meaning of article 3 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001);

b

physical asset” means an asset whose value depends on its physical form, including—

i

land,

ii

buildings and other structures on land or sea,

iii

vehicles, ships, aircraft or rolling stock, and

iv

commodities.