The Occupational Pension Schemes (Scheme Administration) Amendment Regulations 1998

• Citation: S.I. 1998/1494
• Sections: 2

Section 1 Citation and commencement

These Regulations may be cited as the Occupational Pension Schemes (Scheme Administration) Amendment Regulations 1998 and shall come into force on 22nd July 1998.

Section 2 Amendment of the Occupational Pension Schemes (Scheme Administration) Regulations 1996

In regulation 3 of the Occupational Pension Schemes (Scheme Administration) Regulations 1996 (exemptions from the professional advisers requirements) after paragraph (4) there shall be added the following new paragraphs:—

(5) Subject to paragraph (6), where the trustees or managers of a scheme appoint a custodian on terms—

(a) which allow the custodian to use the services of an appointed person; and

(b) which—

(i) in the case of a custodian appointed before the relevant date, set out in writing, or

(ii) in the case of a custodian appointed on or after the relevant date, specify that, before taking up the appointment the custodian must disclose in writing to the trustees or managers,

whether, and if so, the extent to which the custodian accepts liability in respect of functions exercised or exercisable on his behalf by an appointed person; and

(c) which require that, immediately upon any subsequent change in the extent of the liability accepted by the custodian in respect of functions exercised or exercisable on his behalf by an appointed person, the custodian must disclose in writing to the trustees or managers whether and, if so, the extent to which his liability has changed,

section 47(3) of the 1995 Act shall not apply with respect to any reliance placed on the skill or judgement of the appointed person in the exercise of any of the functions given to the appointed person.

(6) In a case where—

(a) sub-paragraph (b)(ii) of paragraph (5) applies; or

(b) there has been a change of a kind mentioned in sub-paragraph (c) of that paragraph,

section 47(3) of the 1995 Act shall not be disapplied by virtue of that paragraph unless the custodian has made the disclosure required by that sub-paragraph (b)(ii) or, as the case may be, that sub-paragraph (c).

(7) In paragraphs (5) and (6)—

“appointed person” means any person appointed by a custodian, or by any other person empowered by the terms of his own appointment to appoint another person, to exercise any of the functions given to the custodian;

“custodian” means a person appointed by the trustees or managers to exercise any of the functions set out in regulation 2(c) of these Regulations (custody of cash, securities, etc ); and

“relevant date” means 22nd July 1998.