The Stakeholder Pension Schemes (Amendment) (No.2) Regulations 2001

Amendment of regulation 11 E+W+S

7.—(1) Regulation 11 (requirement for manager of schemes not established under trust to appoint a reporting accountant) shall be amended as follows.

(2) In paragraph (1) for “Subject to paragraph (2), for” substitute “ For ”.

(3) Omit paragraph (2).

(4) For paragraph (3) substitute—

“(3) There shall be appointed as reporting accountant for the scheme (“the reporting accountant”), by the trustees or manager of the scheme, a person who is eligible under paragraph (4) for such appointment.”.

(5) For paragraph (4) substitute—

“(4) A person is eligible for appointment as the reporting accountant only if—

(a) he is not or, in the case of a partnership, no partner or employee of the partnership is a member of the scheme;

(b) he is not or, in the case of a partnership, neither the partnership nor any partner or employee of the partnership is connected with or an associate of the manager, or any of the trustees, of the scheme;

(c) he is eligible (but subject to paragraph (10)) under section 25 of the Companies Act 1989 M1 (“the 1989 Act”) for appointment as a company auditor; and

(d) he is not by virtue of section 27 of the 1989 Act ineligible for appointment as company auditor of a company which is an employer in relation to the scheme.”.

(6) In paragraphs (6) to (8), for “manager” in each place where it occurs substitute “ trustees or manager ”.

(7) In paragraph (7)—

(a) after “in the event of his resignation” insert “ (including where he resigns solely or partly because he is required to do so by paragraph (7A)) ”; and

(b) for sub-paragraph (b) substitute—

“(b) a declaration that he knows of no such circumstances,

but for the purposes of this paragraph, such circumstances shall not include the mere fact of his being, or having become, ineligible as mentioned in paragraph (7A).”.

(8) After paragraph (7) insert—

“(7A) Where the reporting accountant is or becomes ineligible, by virtue of paragraph (11) or of not satisfying the conditions in paragraph (4), for his appointment as such—

(a) he shall not act as the reporting accountant (except if required to do so under paragraph (6), and except as required by his agreement under paragraph (7) and as required by sub-paragraphs (c) and (d));

(b) anything done for the purposes of these Regulations by him acting as such while ineligible in contravention of sub-paragraph (a) shall by the trustees or manager be taken for those purposes not to have been done;

(c) he shall resign (with immediate effect) by notice in writing immediately he is or becomes aware, or, as the case may be, should reasonably be or become aware, that he is or has become so ineligible;

(d) he shall state in that notice—

(i) that he is resigning by reason of ineligibility; and

(ii) the ground on which he is or has become so ineligible;

(e) notwithstanding sub-paragraph (c), if he is still in place when the trustees or manager are or become aware, or should reasonably be or become aware, that he is or has become so ineligible, the trustees or manager shall remove him immediately.”.

(9) In paragraph (8)—

(a) for “Where” substitute “ Except in cases falling within paragraph (9), where ”; and

(b) for “shall appoint” to the end substitute—

“shall appoint, in accordance with this regulation, another reporting accountant—

(a) within 3 months of the date of that removal, resignation or death; or

(b) if earlier, as soon as is required in order not to prevent compliance with regulation 12(5) and (6).”.

(10) After paragraph (8) insert—

“(9) Where under paragraph (7A) the reporting accountant resigns with immediate effect or is removed, the trustees or manager shall appoint, in accordance with this regulation, another reporting accountant—

(a) within one month of the date of that resignation or removal; or

(b) if earlier, as soon as is required in order not to prevent compliance with regulation 12(5) and (6).

(10) For the purposes of paragraph (4)(c), a person is not eligible under section 25 of the 1989 Act for appointment as a company auditor if section 34 of that Act applies to him (individuals retaining only authorisation under section 13(1) of the Companies Act 1967) M2 .

(11) In this regulation references to a person are references to an individual, a body corporate or a partnership.”.

Marginal Citations

M1 1989 c.40.

M2 Section 13(1) was repealed by section 29 of, and Schedule 1 to, the Companies Consolidation (Consequential Provisions) Act 1985 (c.9), and was replaced by section 389(2) of the Companies Act 1985 (c.6) (repealed by section 212 of, and Schedule 24 to, the Companies Act 1989). (See, in addition to section 34 of the Companies Act 1989, section 31 of that Act, and in particular section 31(2) which covers cases previously covered by section 389(2) of the Companies Act 1985.)