United Kingdom Statutory Instruments

" "dilution levy" has the meaning given by - 

" "contract of insurance" means a contract - 

(a) determine at what intervals the circumstances, and in particular the nature of the investment or investment option, make it desirable to obtain and consider in relation to that investment or investment option such advice as is mentioned in paragraph (4); and

(b) obtain and consider such advice accordingly.".

" a person who may himself give proper advice - 

(a) must - 


(i) before making any investment or selecting any investment option for the purposes of the scheme, consider; and

(ii) if so retaining any investment or investment option, consider at such intervals as are determined by him in relation to that investment or investment option under paragraph (4A)(a),



whether the investment or investment option is satisfactory having regard to the matters mentioned in paragraph (3) and the principles contained in the statement under regulation 9; and

(b) must record in writing the reasons why he considers that any - 



(i) investment he makes or retains; or

(ii) investment option he selects or retains,



is satisfactory having regard to those matters and principles.".

(a) paragraph (4) unless the advice to be obtained and considered by him under that paragraph is given or (by the giver of the advice) confirmed in writing;

(b) paragraph (4A)(a) unless the determination to be made by him under that paragraph is recorded by him in writing;

(c) paragraph (4A)(b) unless the advice to be obtained and considered by him under that paragraph is given or (by the giver of the advice) confirmed in writing.".

" (a) a statement that the trustees or manager are responsible for ensuring - 


(i) that there are in place; and

(ii) proper use of,



systems which and controls which ensure the proper administration of the scheme;

(b) a statement describing each of the - 



(i) principal systems; and

(ii) principal controls,



designed to ensure the proper administration of the scheme and which were in place for all or any part of the period in relation to which the declaration is made (whether put in place during or prior to that period);

(c) a statement, in relation to each of those principal systems and principal controls, of which particular aspect of the proper administration of the scheme that system or control was designed to ensure;

(d) a statement that the (not merely the principal) systems designed as mentioned in sub-paragraph (b) and in place as so mentioned, and controls so designed and so in place, were overall of a design such that, and used such that, they provide reasonable assurance - 



(i) in relation to each of those systems and controls, that there has been ensured that particular aspect of the proper administration of the scheme which that system or control was designed to ensure; and

(ii) that the statement made under sub-paragraph (e) is true;



(e) a statement - 



(i) that regulations 13 and 14 of these Regulations have been complied with in relation to the scheme;

(ii) that transactions for the purposes of the scheme in securities, property or other assets occur at a fair market value;

(iii) that the value of members' rights has been determined in accordance with the provisions in the instruments establishing the scheme; and

(iv) that adequate accounts and records have been maintained for the purposes of providing to members the statement required by regulation 18(2) of these Regulations; and



(f) a statement that the conditions mentioned in section 1(1) were fulfilled.".

" (a) a statement - 


(i) as to whether, in the opinion of the reporting accountant, it was or was not reasonable for the trustees or manager to make the statements mentioned in paragraph (2)(b) and (d) and contained in the declaration;

(ii) so far as the reporting accountant is unable to express such an opinion, explaining why he is unable to do so; and



(b) a statement containing a summary - 



(i) of the tests performed by the reporting accountant for the purposes of his making the statement mentioned in sub-paragraph (a); and

(ii) of the results of those tests.".

(a) the trustees or manager, as the case may be, shall not be regarded as having complied with paragraph (5); and

(b) for the purposes of paragraphs (6) and (7), neither statement shall be regarded as obtained in accordance with paragraph (5).".

     " (including any dilution levy) are incurred by the trustees or manager";

(b) after sub-paragraph (d) insert "and";

(c) after sub-paragraph (e) omit "and"; and

(d) omit sub-paragraph (f).

     " reporting accountant to make the statement mentioned in regulation 12(5)(a)(i) so far as that statement relates to regulation 12(2)(d)(ii)".

(a) within 3 months of the end of that statement year; or

(b) where he ceases during that statement year to be a member, during the period beginning with the time at which he so ceases and ending on and including the last day of the three-month period mentioned in sub-paragraph (a),

a statement which contains the information mentioned in paragraph (5), so far as that information relates to that statement year or, in cases falling within sub-paragraph (b), to the part of that statement year beginning with the first day of that statement year (whether or not that day is earlier than the day on which he becomes a member) and ending with the time at which he so ceases.".

" beginning - 

(a) in the case of a person who becomes a member after 6th April 2001, on a date chosen, in respect of that person, by the trustees or manager which falls - 


(i) on or before the day on which he becomes a member; but

(ii) no earlier than 6th April 2001; and



(b) in any other case, on 6th April 2001,

and, subject to paragraph (4), each subsequent period ending on and including the anniversary of the last day of the first statement year.".

     " "statement year" shall mean, in relation to the person in respect of whom the new date is chosen, the period of 12 months ending on and including that new date (except that, in relation to the first statement year relating to that person, "statement year" shall mean, in relation to him, the period beginning with the day which is, by virtue of paragraph (3)(b) or of a choice under paragraph (3)(a), the first day of that first statement year and ending on and including that new date) and each subsequent period ending on and including the anniversary of that new date."

     .

     " (except any employee who has not attained the age of 18, and except any employee in respect of whom paragraph (8) is satisfied)".

" (a) in cases falling within paragraph (4A) - 


(i) the condition remains dependent; and

(ii) the employer continues making contributions,



as mentioned in paragraph (4A)(b);

(b) in cases falling within paragraph (4B), the employee is not required to make contributions exceeding 3 per cent. of the amount of remuneration paid to him on any such occasion or for each such interval.".

(a) the term mentioned in paragraph (2)(a)(i), and the condition mentioned in paragraph (4) - 


(i) are in place on 8th October 2001; and

(ii) have on that date continuously been in place from prior to that date;



(b) that condition - 



(i) is on 8th October 2001; and

(ii) has on that date continuously been from prior to that date,



dependent on the employer making contributions at a rate equal to or exceeding the rate specified in respect of contributions to be made by the employee; and

(c) the employer has on 8th October 2001 continually been, from prior to that date, making contributions as mentioned in sub-paragraph (b).

    (4B) A case falls within this paragraph if - 

(a) the condition mentioned in paragraph (4) is first imposed on or after 8th October 2001; or

(b) the employer ceases, on or after that date, making contributions as mentioned in paragraph (4A)(b).".

(a) in cases not falling within sub-paragraph (b), the employer can provide written evidence to show that contributions are being made as if every relevant employee (except those mentioned in paragraph (8D)) had a term in his contract that would satisfy paragraph (2)(a);

(b) where contributions made by the employer in relation to a relevant employee (except one mentioned in paragraph (8D)) are subject to a condition which (but for the fact that it is not contained in that employee's contract (if it is not so contained)) is a condition such as is mentioned in paragraph (4), the employer can provide written evidence to show that - 


(i) where the employer is, in relation to that relevant employee, making contributions as mentioned in paragraph (4A)(b), the condition in paragraph (8A) is satisfied;

(ii) where the employer ceases, on or after 8th October 2001 and in relation to that relevant employee, making contributions as mentioned in paragraph (4A)(b), the condition in paragraph (8B) is satisfied;

(iii) in any other case, the condition in paragraph (8C) is satisfied.

    (8A) The condition referred to in paragraph (8)(b)(i) is that contributions - 

(a) are being, and have continually from prior to 8th October 2001 been, made as if the relevant employee whose case falls within paragraph (8)(b)(i) had a term in his contract that - 


(i) subject to sub-paragraph (ii), would satisfy paragraph (2)(a)(i);

(ii) would satisfy paragraph (2)(a)(i), so far as paragraph (2)(a)(i) relates to paragraph (4), as if and on the grounds that - 


(aa) his case fell within paragraph (4A); and

(bb) the conditions in paragraph (4)(a) were satisfied; and



(b) are being made as if that relevant employee had a term in his contract that would satisfy paragraph (2)(a)(ii).

    (8B) The condition referred to in paragraph (8)(b)(ii) is that contributions are being made as if the relevant employee whose case falls within paragraph (8)(b)(ii) had a term in his contract - 

(a) that - 


(i) subject to sub-paragraph (ii), would satisfy paragraph (2)(a)(i);

(ii) would satisfy paragraph (2)(a)(i), so far as paragraph (2)(a)(i) relates to paragraph (4), as if and on the ground that the condition in paragraph (4)(b) were satisfied; and



(b) that would satisfy paragraph (2)(a)(ii).

    (8C) The condition referred to in paragraph (8)(b)(iii) is that contributions are being made as if the relevant employee whose case falls within paragraph (8)(b)(iii) had a term in his contract - 

(a) that - 


(i) subject to sub-paragraph (ii), would satisfy paragraph (2)(a)(i);

(ii) would satisfy paragraph (2)(a)(i), so far as paragraph (2)(a)(i) relates to paragraph (4), as if and on the grounds that - 


(aa) his case fell within paragraph (4B)(a); and

(bb) the condition in paragraph (4)(b) were satisfied; and



(b) that would satisfy paragraph (2)(a)(ii).

    (8D) The employees referred to in paragraph (8) are - 

(a) any employee who has not attained the age of 18;

(b) any employee in respect of whom paragraph (2) is satisfied;

(c) any employee - 


(i) in the case of paragraph (8)(a), in respect of whom paragraph (8)(b) is satisfied;

(ii) in the case of paragraph (8)(b), in respect of whom paragraph (8)(a) is satisfied.".

" (g) any employee who is now excluded from active membership of an occupational pension scheme of the employer because that employee ceased to be a member or active member of that scheme;

(h) for the purposes only of consultation pursuant to section 3(2), and in relation to consultation for the purposes of any particular designation of a scheme pursuant to section 3(2), any employee who was not an employee of the employer on the date of commencement of that consultation.".

" the end of - 

(a) the pay period following that in which the request is made; or

(b) where the request relates to a pay period later than the one following that in which the request is made, that later pay period.".

" (a) that - 


(i) he is not complying with the request; and

(ii) the reason he is not complying with it is that it was made within 6 months of the employee requesting him to make, vary or cease such deductions and the employer is permitted by these Regulations not to comply with it in such circumstances;"; and

(b) in sub-paragraph (c) - 

(i) in sub-paragraph (i) omit "immediately"; and

(ii) in sub-paragraph (ii) after "the employee may make payments," insert - 


     " (subject to the trustees or manager refusing to accept them as permitted by or under these Regulations)".

(a) of a contribution to which the request relates, the employer need not comply with the request so far as the request relates to that contribution;

(b) of contributions of a particular type, the employer need not comply with the request so far as the request relates to a contribution of that particular type.

    (2B) Where the employer, on a ground mentioned in paragraph (2A), does not comply with the request, he must give notice to the employee in writing - 

(a) that, and of the extent to which, he is not complying with the request;

(b) that the reason he is not complying with the request to that extent is that - 


(i) the trustees or manager have informed the employer that they will refuse, in accordance with regulation 17, to accept payment of a contribution to which the request relates or of contributions of a particular type; and

(ii) the employer is permitted by these Regulations not to comply with the request so far as the request relates to that contribution or to a contribution of that particular type;



(c) where the trustees or manager cite to the employer the ground of refusal in regulation 17 on which they will rely to refuse that contribution or contributions of that particular type, informing him that the trustees or manager have cited that ground of refusal in relation to that contribution or to contributions of that particular type; and

(d) informing him that - 



(i) he may require the employer to cease such deductions (if deductions are being made at the time of the request) but, if the employee makes such a request, the employer is not required to comply with any further request to make such deductions if that further request is made within 6 months of the employee requesting that the deductions cease; and

(ii) the employee may make payments, (subject to the trustees or manager refusing to accept them as permitted by or under these Regulations) at a rate of his choosing, directly to the qualifying scheme.".

(a) comply with that request as soon as possible, but no later than the end of - 


(i) the pay period following that in which that request is made; or

(ii) where that request relates to a pay period later than the one following that in which that request is made, that later pay period; and



(b) give notice to the employee in writing - 



(i) that the employer is not required to comply with any further request to make such deductions if that further request is made within 6 months of the employee requesting that the deductions cease; and

(ii) that the employee may make payments, (subject to the trustees or manager refusing to accept them as permitted by or under these Regulations) at a rate of his choosing, directly to the qualifying scheme.".

(a) the pay period following that in which the request to which the notice relates is made; or

(b) where that request relates to a pay period later than the one following that in which that request is made, that later pay period.

    (7) In this regulation and in regulation 25 references, in relation to an employer, to an employee are references to a relevant employee of that employer where that relevant employee is a member of a qualifying scheme.".

(i) for "the request" where it first occurs substitute "that request"; and

(ii) for "the end of the pay period following that in which the request is made." substitute - 

" the end of - 

(a) the pay period following that in which that request is made; or

(b) where that request relates to a pay period later than the one following that in which that request is made, that later pay period."; and

(f) after sub-paragraph (d) insert - 

     " and

(e) advice that - 


(i) the trustees or manager of the scheme may refuse to accept a contribution if accepting it would contravene the scheme's tax-exemption or tax-approval;

(ii) if the instruments establishing the scheme allow it, the trustees or manager may also refuse to accept payments of less than £20; and

(iii) where an employee requests an employer to make or vary deductions of the employee's contributions to a qualifying scheme from the employee's remuneration, the employer need not comply with that request so far as that request relates to any particular contribution, if the trustees or manager of the scheme inform the employer that they will refuse, in accordance with the regulation which allows them to refuse payments on the grounds referred to in sub-paragraphs (i) and (ii) (and on other grounds), to accept that contribution or contributions of that particular type.".