PART 1Master Trusts

Authorisation: applications etc

3Prohibition on operating a scheme unless authorised

1

A person may not operate a Master Trust scheme unless the scheme is authorised.

2

Article 10 of the Pensions (Northern Ireland) Order 1995 (in this Act referred to as “the 1995 Order”) (civil penalties) applies to a person who breaches subsection (1).

3

If the Regulator becomes aware that a Master Trust scheme is operating without authorisation, it must notify the trustees of the scheme that the scheme is not authorised.

4

The notification must include an explanation that it is a triggering event for the purposes of sections 20 to 33 and of the trustees’ duties under those sections.

5

For the purposes of this Part, a person “operates” a Master Trust scheme if the person—

a

accepts money from members or employers (or prospective members or employers), in respect of fees, charges, contributions or otherwise, in relation to the scheme, or

b

enters into an agreement with an employer that relates to the provision of pension savings for employees or other workers,

and references to a scheme that is “operating” or “in operation” are to be construed accordingly.

4Application for authorisation

1

The trustees of a Master Trust scheme may apply to the Regulator for authorisation.

2

The application must include the following—

a

the scheme’s latest accounts;

b

the latest accounts of each scheme funder;

c

the scheme’s business plan (see section 9);

d

the scheme’s continuity strategy (see section 12).

3

In considering an application, the Regulator may take into account any matters it considers appropriate, including—

a

additional information provided by the applicant, and

b

subsequent changes to the application or to any information provided by the applicant.

4

The application must be made in the manner and form specified by the Regulator.

5

The Department may make regulations setting out—

a

other information to be included in an application, and

b

the application fee payable to the Regulator.

6

Regulations under this section are subject to negative resolution.

5Decision on application

1

Where an application is made for authorisation of a Master Trust scheme under section 4, the Regulator must decide whether it is satisfied that the scheme meets the authorisation criteria.

2

The Regulator must make that decision within the period of six months beginning with the day on which it received the application.

3

The authorisation criteria are—

a

that the persons involved in the scheme are fit and proper persons (see section 7),

b

that the scheme is financially sustainable (see section 8),

c

that each scheme funder meets the requirements set out in section 10,

d

that the systems and processes used in running the scheme are sufficient to ensure that it is run effectively (see section 11), and

e

that the scheme has an adequate continuity strategy (see section 12).

4

If the Regulator is satisfied that the Master Trust scheme meets the authorisation criteria, it must—

a

grant the authorisation,

b

notify the applicant of its decision, and

c

add the scheme to its list of authorised Master Trust schemes (see section 13).

5

If the Regulator is not satisfied that the Master Trust scheme meets the authorisation criteria, it must—

a

refuse to grant the authorisation, and

b

notify the applicant of its decision.

6

A notification under subsection (5) must also include—

a

the reasons for the decision, and

b

details of the right of referral to the First-tier Tribunal or Upper Tribunal (see section 6).

6Referral to Tribunal of refusal to grant authorisation

1

If the Regulator refuses to grant authorisation to a Master Trust scheme, the decision may be referred to the Tribunal by—

a

the trustees, or

b

any other person who appears to the Tribunal to be directly affected by the decision.

2

For the purposes of this Act, any reference in section 3 of the Tribunals, Courts and Enforcement Act 2007 to “any other Act” includes a reference to an Act of the Assembly.

3

In this section—

  • “the Tribunal”, in relation to a referral under subsection (1), means—

    1. a

      the First-tier Tribunal, in any case where it is determined by or under Tribunal Procedure Rules that the First-tier Tribunal is to hear the reference;

    2. b

      the Upper Tribunal, in any other case;

  • “First-tier Tribunal” and “Upper Tribunal” mean those tribunals established under section 3 of the Tribunals, Courts and Enforcement Act 2007;

  • “Tribunal Procedure Rules” has the same meaning as in the Tribunals, Courts and Enforcement Act 2007.