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
Section 10 of the Pensions Act 1995 (civil penalties) applies to a person who breaches subsection (1).
3
If the Pensions 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 Pensions 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 Pensions 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 Pensions Regulator.
5
The Secretary of State may make regulations setting out—
a
other information to be included in an application, and
b
the application fee payable to the Pensions Regulator.
6
Regulations under this section are subject to negative resolution procedure.
5Decision on application
1
Where an application is made for authorisation of a Master Trust scheme under section 4, the Pensions Regulator must decide whether it is satisfied that the scheme meets the authorisation criteria.
2
The Pensions 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 Pensions 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 Pensions 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 Pensions 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
In this section “the Tribunal”, in relation to a referral under subsection (1), means—
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;
b
the Upper Tribunal, in any other case.