PART 1

Collective money purchase benefits

Authorisation

Authorisation of collective money purchase schemes
7
1
A person may not operate a collective money purchase 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 collective money purchase scheme is being operated without authorisation, it must notify the trustees of the scheme that the scheme is not authorised.
4
The notification must—
a
explain that the notification is a triggering event (see section 31), and
b
include an explanation of the trustees’ duties under sections 31 to 45.
5
For the purposes of this section a person “operates” a collective money purchase scheme if, in relation to the scheme, the person accepts—
a
money paid by a member (or prospective member), or
b
money paid by an employer (or prospective employer) in respect of contributions, fees, charges or anything else except—
i
the costs of setting up the scheme, or
ii
costs relating to obtaining authorisation for the scheme.