Section 10 makes provision about a Master Trust’s scheme funder and the requirements that it must meet for authorisation.
Subsection (2) requires the scheme funder to be a body corporate or partnership that is a legal person under the law by which it is governed.
Subsection (3) requires the scheme funder only to carry out activities that relate directly to the Master Trust (or Trusts) for which it is the scheme funder or prospective scheme funder.
Subsections (4) and (5) provide a regulation-making power for the Department to make exceptions to the requirement in subsection (3) if the scheme funder meets additional requirements specified in the regulations. These regulations may, for example, provide an exception where the scheme funder meets additional requirements in relation to its financial position or business activities or provides specified information to satisfy the Pensions Regulator of the Master Trust’s financial sustainability.
Subsection (6) provides a power for the Department to make regulations that set out requirements in relation to the scheme funder’s accounts. The first regulations made under subsection (4) are subject to the confirmatory procedure while any subsequent regulations and regulations made under subsection (6) are subject to negative resolution.