http://www.legislation.gov.uk/ukpga/2008/30/section/28CPensions Act 2008An Act to make provision relating to pensions; and for connected purposes.texttext/xmlenStatute Law Database2026-07-02Expert Participation2026-06-29 Pensions Act 2008s. 24(1)(c)Pension Schemes Act 2015Sch. 2 para. 43(2)(d)s. 87s. 89(4)(a)Pensions Act 2008s. 28CPension Schemes Act 2026s. 40(17)(c)s. 40(18)(f)Pensions Act 2008s. 3(1A)Pensions (Extension of Automatic Enrolment) Act 2023s. 1(2)s. 2(3)Pensions Act 2008s. 5(1C)Pensions (Extension of Automatic Enrolment) Act 2023s. 1(3)s. 2(3)Pensions Act 2008s. 13APensions (Extension of Automatic Enrolment) Act 2023s. 1(4)s. 2(3)Pensions Act 2008s. 143(6)(7)Pensions (Extension of Automatic Enrolment) Act 2023s. 1(5)(b)s. 2(3) Part 1Chapter 128C1The Regulatory Authority (“the Authority”) may approve a relevant Master Trust or a group personal pension scheme in respect of the asset allocation requirement only if the Authority determines that at least the prescribed percentage (by value) of the assets held in main default funds of the scheme are qualifying assets.2Regulations under subsection (1) may prescribe a percentage by reference to—aall of the assets of the scheme that are held in main default funds, orba prescribed description of the assets of the scheme that are so held.3In this section “qualifying asset” means an asset of a prescribed description that is held in a main default fund of a relevant Master Trust or group personal pension scheme.4A description of asset may be prescribed under subsection (3) only if it represents a direct or indirect holding in any of the following asset classes—aprivate equity;bventure capital;cprivate credit;dinterests in land;einfrastructure;funlisted equity securities not falling within paragraphs (a) to (e).In this subsection “unlisted equity securities” means equity securities not listed on a recognised stock exchange within the meaning of the Income Tax Acts (see section 1005 of the Income Tax Act 2007) (including equity securities admitted to trading that are not listed on such an exchange).5Regulations under subsection (3) must secure that a description of asset is prescribed under that subsection in respect of each asset class mentioned in subsection (4)(a) to (f).6A description prescribed under subsection (4) may for example relate to—awhether an asset is located in the United Kingdom or elsewhere;bthe presence or absence of other prescribed factors linking an asset to economic activity in the United Kingdom.7Regulations under this section may not have the effect of requiring, as a condition of a scheme's approval under subsection (1)—amore than 10% (by value) of all of the assets of the scheme that are held in main default funds to be qualifying assets, orbmore than 5% (by value) of all of the assets so held to be of a UK-specific description.8In subsection (7)(b) “UK-specific description” means a description framed by reference to whether an asset is located in the United Kingdom or meets any other condition linked to economic activity in the United Kingdom.9For the purposes of this section assets of a relevant Master Trust or group personal pension scheme are held in “main default funds” if—athe jobholders by or in respect of whom contributions have been made to the scheme have not (or predominantly have not) expressed a choice as to where the contributions are allocated, andbthe arrangements under which the assets are held meet any other conditions that may be prescribed.10Regulations may make provision—aabout how the meeting of the asset allocation requirement is to be evidenced;brequiring the trustees or managers of relevant Master Trusts or the providers of group personal pension schemes to have regard to any guidance issued by the Secretary of State about the effect of any regulations under this section.11Regulations may make provision—aas to a time limit within which the Authority must decide an application for approval;bas to procedures in connection with approvals or where an approval has been given;cabout the period for which an approval has effect;dabout the withdrawal of an approval, including conditions for and procedures in connection with withdrawals;eabout the provision to the Authority of information required for the purposes of deciding applications (including any additional information the Authority may require in a particular case);frequiring the Authority to report to the Secretary of State any information the Secretary of State may require relating to the allocation of assets by relevant Master Trusts or group personal pension schemes;gfor the Authority’s decision on the application to be referred to the Upper Tribunal;hfor the Authority to maintain and publish—ia list of relevant Master Trusts that are approved under this section, andiia list of group personal pension schemes that are approved under this section,(or a single list of the pension schemes mentioned in sub-paragraphs (i) and (ii)).12Regulations under subsection (11)(d) may in particular make provision—aabout steps, including communications with a relevant Master Trust or group personal pension scheme, that the Authority must take before deciding to withdraw an approval;bsetting a minimum period that must elapse between notification that approval is to be withdrawn and the withdrawal of the approval;cwhere the Authority has given notice to the trustees or managers of a relevant Master Trust or the provider of a group personal pension that its approval is likely to be withdrawn and any other prescribed conditions are met, requiring the trustees or managers or provider to—iact in relation to the scheme as if its approval has been withdrawn, andiitake steps for ensuring that persons (such as employers) who may be affected in the event of the scheme losing that approval are promptly informed if such a loss should occur;dpermitting the Authority to impose, on a person who fails to comply with a requirement under paragraph (c), a penalty determined in accordance with the regulations that does not exceed £100,000.13Before making regulations under subsection (1) the Secretary of State must prepare and publish a report setting out—aa joint assessment by the Financial Conduct Authority and the Pensions Regulator of the extent to which there is evidence of competitive conditions restricting relevant Master Trusts and group personal pension schemes from investing in qualifying assets, including in circumstances where such investments may be in the best interests of members of such schemes;bthe Secretary of State’s assessment of the extent to which relevant Master Trusts and group personal pension schemes have made progress towards achieving—i10% (by value) of scheme assets held in main default funds to be qualifying assets, andii5% (by value) of scheme assets so held to be of a UK-specific description (within the meaning of subsection (7)(b));cthe Secretary of State’s assessment of any barriers to relevant Master Trusts or group personal pension schemes investing in qualifying assets, including in particular where such assets are located in the United Kingdom;dthe steps taken by the Secretary of State or the Authority to address any such barriers;ehow the financial interests of members of relevant Master Trusts and group personal pension schemes are or would be affected by the proposed regulations;fwhat effects the proposed measures could be expected to have on economic growth in the United Kingdom;gany other matters the Secretary of State considers appropriate.14The power to make regulations under subsection (1) may only be exercised once.15Before making regulations under subsection (1), the Secretary of State must have regard to the joint assessment of the Financial Conduct Authority and the Pensions Regulator mentioned in subsection (13)(a).16Before making regulations under this section, the Secretary of State must consult the Treasury.17The Secretary of State must consult such persons as the Secretary of State considers appropriate before publishing a report under subsection (13).18The Secretary of State may not make regulations under subsection (1) before 1 January 2028.19Provision under this section overrides any provision of the trust deed or rules of the scheme in question, so far as they are in conflict (and for that purpose, a provision of the trust deed or rules of the scheme is “in conflict” with provision under this section so far as the former does not allow for the assets of the scheme to be managed in such a way as to meet the conditions for approval under this section).Pt. 1 applied (with modifications) (temp. 1.7.2012 to 30.6.2020) by The Automatic Enrolment (Offshore Employment) Order 2012 (S.I. 2012/1388), art. 2 (with saving in art. 5)Ss. 28A-28L inserted (29.4.2026 for specified purposes) by Pension Schemes Act 2026 (c. 22), ss. 40(12), 133(1)(4)(c)