Amendment of the Occupational Pension Schemes (Master Trusts) Regulations 2018
2.—(1) Regulation 25 of the Occupational Pension Schemes (Master Trusts) Regulations 2018(1) (administration charges) is amended as follows.
(2) In the body of the regulation, the existing text becomes paragraph (1).
(3) After paragraph (1)(d), for “.” substitute “; (e) costs solely attributable to holding physical assets.”.
(4) After paragraph (1) insert—
“(2) 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.
(3) 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(2));
(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.”
S.I. 2001/544. The definition of financial instrument was inserted by S.I. 2006/3384, and amended by S.I. 2017/488 and S.I. 2019/632. There are other amendments to this article which are not relevant to this instrument.