39.—(1) Article 16 of the Pensions Order (requirement for member-nominated trustees) shall be amended in accordance with subsections (2) to (8).
(2) In paragraph (1)—
(a)the words “(subject to Article 17)” and in sub-paragraph (b), the words “, and the appropriate rules,” shall cease to have effect; and
(b)in sub-paragraph (a), for “persons selected” there shall be substituted “the selection of persons nominated”.
(3) In paragraph (3)(a), for “in accordance with the appropriate rules” there shall be substituted “as a member-nominated trustee”.
(4) In paragraph (4), for “the appropriate rules” there shall be substituted “regulations”.
(5) In paragraph (5), after “six years” there shall be inserted “but for a member-nominated trustee to be eligible for selection again at the end of any period of service as such a trustee”.
(6) After paragraph (6) there shall be inserted—
“(6A) The arrangements must provide that, where the employer so requires, a person who is not a qualifying member of the scheme must have the employer’s approval to qualify for selection as a member-nominated trustee.”.
(7) In paragraph (8)—
(a)for “The arrangements must” there shall be substituted
“The arrangements—
(a)must”; and
(b)after “that fact” there shall be inserted
“; and
(b)may provide for a member-nominated trustee who—
(i)is a qualifying member of one of the following descriptions, that is to say, an active, deferred or pensioner member, and
(ii)ceases (without ceasing to be a qualifying member) to be a qualifying member of that description,
to cease, by virtue of that fact, to be a trustee”.
(8) After paragraph (8) there shall be added—
“(9) Regulations may make provision in relation to arrangements under this Article—
(a)supplementing the requirements of this Article as to the matters to be contained in the arrangements, and
(b)providing for the manner in which, and the time within which, persons are, for the purposes of the arrangements, to be nominated and selected as member-nominated trustees.
(10) This Article does not apply in the case of a trust scheme if—
(a)every member of the scheme is a trustee of the scheme and no other person is such a trustee,
(b)every trustee of the scheme is a company, or
(c)the scheme is of a prescribed description.”.
(9) Article 17 of that Order (exceptions) shall cease to have effect.