The Personal Pension Schemes (Appropriate Schemes) Regulations 1988

law://uk/uksi/1988/137@2026-11-14

Contents

1Citation, commencement and interpretation#

(1)These Regulations may be cited as the Personal Pension Schemes (Appro-priate Schemes) Regulations 1988; this regulation and regulations 2 to 11, 19 and 20 shall come into force on 1st March 1988, and regulations 12 to 18 shall come into force on 1st July 1988.

(2)In these Regulations, unless the context otherwise requires—• “the Act” means the Social Security Act 1986;• “administrators”, in relation to a personal pension scheme, means the trustees or, if there are no trustees, the managers (except any trustee or manager who is resident outside the United Kingdom, or which, being a company, does not have its registered office in the United Kingdom), and any person who is resident in the United Kingdom, or which, being a company, has its registered office in the United Kingdom, who or which is authorised to act on behalf of the trustees, or, if there are no trustees, on behalf of the managers;• “the Board” means the Occupational Pensions Board;• “contracted-out”, “contracted-out scheme” and “money purchase contracted-out scheme” shall be construed in accordance with the Social Security Pensions Act 1975.• “Friendly Society” means a Friendly Society registered under section 7(1)(a) of the Friendly Societies Act 1974, or, as the case may be, under section 1(1) of the Friendly Societies Act (Northern Ireland) 1970.• “investment business” has the meaning assigned to that expression by the Financial Services Act 1986;• “pensionable age” means, in the case of a man, 65, and in the case of woman, 60;• “scheme” (except in the expressions “contracted-out scheme”, “money purchase contracted-out scheme”, “occupational pension scheme” and “unit trust scheme”) means personal pension scheme;• “tax week” has the same meaning as in the Social Security Act 1975;and other expressions have the same meaning as in the Act.

(3)In these Regulations, unless the context otherwise requires, any reference—

(a)to a numbered regulation is to the regulation in these regulations bearing that number;

(b)in a regulation to a numbered paragraph is to the paragraph of that regulation bearing that number;

(c)in a paragraph to a lettered sub-paragraph is to the sub-paragraph of that paragraph bearing that letter.

2Forms of schemes which may be appropriate schemes#

(1)Without prejudice to any other requirements imposed by the Act or regulations made under it, a personal pension scheme can be an appropriate scheme only if it is approved by the Inland Revenue under either Chapter II of Part I of the Finance (No. 2) Act 1987 or Chapter II of Part II of the Finance Act 1970 by reference to section 20(2)(h) of that Act and in either case it takes the form specified in any one (but not more than one) of sub-paragraphs (a) to (c) namely—

(a)an arrangement for the issue of insurance policies or annuity contracts;

(b)a unit trust scheme of a kind mentioned in Part I of Schedule 1 to these regulations which has been authorised under section 78(1) of, or by virtue of paragraph 9 of Schedule 15 to, the Financial Services Act 1986;

(c)an arrangement for the investment of contributions in an interest-bearing account or shares in or deposits with a building society as defined in the Building Societies Act 1986.

(2)For the purposes of this regulation a personal pension scheme which has been granted provisional approval by the Inland Revenue under the Personal Pension Schemes (Provisional Approval) Regulations 1987 shall be treated as being approved under Chapter II of Part I of the Finance (No. 2) Act 1987.

3Persons who and bodies which may establish schemes#

(1)Without prejudice to any other requirements of the Act or regulations made under it—

(a)an arrangement such as is described in regulation 2(1)(a) which is established by a Friendly Society can be an appropriate scheme only if paragraph (2) applies to that Friendly Society; and

(b)an arrangement such as is described in regulation 2(1)(c) can be an appropriate scheme only if it is established by a person to whom or a body to which paragraph (3) applies.

(2)This paragraph applies to a Friendly Society which—

(a)is authorised by virtue of Chapter III of Part I of the Financial Services Act 1986; and

(b)has disclosed in its audited accounts a contributions income of not less than £300,000 in the year 1986 and £400,000 in the year 1987.

(3)This paragraph applies to—

(a)a building society as defined in the Building Societies Act 1986;

(b)a Pension Company within the meaning of the Building Societies (Designation of Pension Companies) Order 1987which is an associated body of a building society within the meaning of section 18(17) of the Building Societies Act 1986;

(c)an institution authorised under Part I of the Banking Act 1987.

4Information to be included in an application for an appropriate scheme certificate#

(1)Every application for an appropriate scheme certificate shall be made in writing to the Board and shall include the following particulars—

(a)the name of the scheme and the address where it is administered;

(b)the names and addresses of the trustees (if any) and administrators of the scheme;

(c)the name, address and standing (in relation to the scheme) of the person applying for the certificate, if he is not the trustees or administrators, or one or some of them;

(d)the name and address of the person who or body which has established the scheme (the address in the case of a company being that of its registered office);

(e)such evidence as the Board may reasonably require that the scheme satisfies such of the requirements of regulation 3 as apply to it;

(f)which of the forms specified in sub-paragraphs (a) to (c) of regulation 2(1) the scheme takes;

(g)the name and address of a bank or building society which accepts payments made by automated direct credit transfer and the name and number of the account at that bank or building society, into which it is desired that minimum contributions should be paid; and

(h)the date (being a date consistent with the provisions of regulation 5(2)(b)) from which it is desired that the certificate shall have effect.

(2)Every application shall be accompanied by a copy of—

(a)the documents constituting the scheme; and

(b)the rules of the scheme, if they are not set out in those documents or any of them,

except where the Board in their discretion dispense wholly or partly with this requirement.

(3)Every person who has made an application shall supply such other documents and information as the Board may reasonably require.

5Issue of appropriate scheme certificates#

(1)When the Board have determined that a scheme should be treated as an appropriate scheme, they shall issue an appropriate scheme certificate to the person who applied for it, but no such certificate shall be issued before 1st July 1988.

(2)The appropriate scheme certificate shall specify—

(a)the name of the scheme and the address where it is administered; and

(b)the date from which the certificate is to have effect, which shall be 6th April in 1987 or any later year and which may be earlier than the date on which the certificate is issued where the person who applied for the certificate has so requested, but, if the Board receive the application after 5th April 1989, not earlier than 6th April in the tax year in which the Board receive the application.

6Further information and change of circumstances#

The administrators of the scheme shall—

(a)in such manner and at such times as the Board may reasonably require, furnish to the Board such reports, accounts and other documents and information relating to the scheme to which the certificate relates as the Board may reasonably require; and

(b)notify the Board in writing of—

(i)any change in the identity, names or addresses of the trustees (if any) and administrators of the scheme,

(ii)any change in the name or address of the person who or body which has established the scheme,

(iii)any change affecting the information given under regulation 4(1)(e) and (f), and

(iv)any change of circumstances affecting the scheme as the Board may have required them to notify,

as soon as practicable after its occurrence; and the document by which the notification is given may be served by post.

7Applications for the variation of, and to surrender, appropriate scheme certificates#

(1)Every application for the variation of, or to surrender, an appropriate scheme certificate—

(a)shall be made in writing to the Board by the administrators of the scheme;

(b)shall be made only after notices of intention to make that application have been given by the administrators in accordance with paragraph (2) except where (in the case of an application for the variation of an appropriate scheme certificate) the Board dispense with this requirement; and

(c)shall include a statement that all notices required by paragraph (2) to be given in relation to that application have been duly given.

(2)Notices of intention to make an application such as is mentioned in paragraph (1) shall be given in writing to—

(a)any member of the scheme who has protected rights under it; and

(b)any earner who, jointly with the trustees or managers of the scheme, has given in relation to the scheme a notice under section 1(9) of the Act which has not been cancelled,

by sending it to his last known address; and the document comprising the notice may be served by post.

(3)Notices given under this regulation shall specify—

(a)the name of the scheme and the address where it is administered;

(b)the date (being a date consistent with the provisions of regulation 9(5)) from which it is desired that the variation or surrender shall have effect; and

(c)where the application is to surrender an appropriate scheme certificate, any arrangements made or proposed for the preservation or transfer of protected rights under the scheme.

(4)Every person who makes an application under this regulation shall supply such other documents and information as the Board may reasonably require.

8Determination of question arising on an application for the issue of an appropriate scheme certificate#

(1)Subject to the provisions of this regulation, the Board shall treat an application for an appropriate scheme certificate as an application for the determination of the question whether the scheme in question shall be an appropriate scheme, and subject to the provisions of paragraph (3), they shall determine the question as soon as practicable.

(2)The Board may refuse to give effect to an application if they are not satisfied that the applicant has complied with the provisions of regulation 4.

(3)The Board may defer making a determination until such documents and information as are mentioned in regulation 4(2) and (3) have been supplied.

(4)Where under this regulation the Board determine that a scheme should be treated as an appropriate scheme they shall issue an appropriate scheme certificate in accordance with regulation 5, and inform the Secretary of State that they have done so.

(5)Where the Board’s determination under this regulation does not give effect to the application, the Board shall notify the applicant in writing of the determination and of the reasons for it and shall refer him to the Board’s powers of review under section 67 of the Social Security Act 1973.

9Determination of question arising on an application with a view to the variation or surrender of an appropriate scheme certificate#

(1)Subject to the provisions of this regulation, the Board shall treat an application made with a view to the variation or surrender of an appropriate scheme certificate as an application for the determination of the question whether the certificate should be varied or, as the case may be, whether the scheme should cease to be an appropriate scheme; and subject to the provisions of paragraph (3) they shall determine the question as soon as practicable.

(2)The Board may refuse to give effect to an application if they are not satisfied that the applicant has complied with the provisions of regulation 7.

(3)The Board may defer making a determination until such documents and information as are mentioned in regulation 7(4) have been supplied.

(4)When the Board have made a determination under paragraph (1), they shall vary or accept the surrender of the certificate if such action would give effect to the determination, and inform the Secretary of State that they have done so.

(5)The date from which a surrender or variation is to have effect shall be that on which the determination is made, except that, where the person who made the application has requested that it should have effect from a specific date which is earlier or later than the date on which the determination is made, it may have effect from that specific date, so however that that date shall not be earlier than the date on which the Board receive the application, or later than the last day of the tax year in which the Board receive the application.

(6)Where the Board’s determination under this regulation does not give effect to the application, the Board shall notify the applicant in writing of the determination and of the reasons for it and shall refer him to the Board’s powers of review under section 67 of the Social Security Act 1973; and the applicant shall give notice in writing of the determination and the Board’s reasons for it, to—

(a)any member of the scheme who has protected rights under it; and

(b)any earner who, jointly with the trustees or managers of the scheme, has given in relation to the scheme a notice under section 1(9) of the Act which has not been cancelled,

by sending it to his last known address; and the document comprising the notice may be served by post.

10Other circumstances in which the Board may cancel an appropriate scheme certificate#

(1)Where the Board have reason to suppose that any scheme to which an appropriate scheme certificate applies should not continue to be an appropriate scheme, and the administrators of the scheme have not shown to the satisfaction of the Board that it should so continue, the Board may determine that the scheme should not continue to be treated as an appropriate scheme; where they so determine, they shall cancel the certificate with effect from such date as they may specify (subject to paragraph (2)); the Board shall notify the administrators of the scheme in writing of their determination and the reasons for it and shall refer them to the Board’s powers of review under section 67 of the Social Security Act 1973, and shall also notify the Secretary of State of their determination.

(2)The date from which the cancellation is to have effect shall be the date on which the certificate is cancelled, except that, where the Board consider that the scheme has failed to satisfy the requirements for continuing to be an appropriate scheme before that date, they may cancel the certificate with effect from an earlier date, so however that that earlier date—

(a)shall not be a date other than 6th April in any year; and

(b)shall not be earlier than 6th April in the tax year in which the Board consider that the scheme first failed to satisfy those requirements.

11Determination of questions#

Any question—

(a)whether a scheme is, or at any time was, an appropriate scheme; or

(b)for what period a scheme is or has been an appropriate scheme,

shall be determined by the Board.

19Cancellation of membership of interest-bearing account-funded appropriate personal pension schemes#

(1)Without prejudice to any other requirements imposed by the Act or regulations made under it, a personal pension scheme which comprises an arrangement of the kind described in regulation 2(1)(c) can be an appropriate scheme only if it satisfies the requirements of paragraph (2).

(2)Without prejudice to any right of a member of the scheme, under section 15(1) of the Act or other rules of the scheme, the rules of the scheme shall include provision—

(a)that, within 7 days of the day on which a person becomes a member of the scheme, he shall be served, personally or by post, with a notice in writing containing the information specified in Schedule 2 to these Regulations and a form of counter-notice; and

(b)that, if the person signs the form of counter-notice or another document to the same effect and serves it—

(i)by post or otherwise,

(ii)not later than the fourteenth day after the notice referred to in paragraph (2)(a) is served on him,

(iii)on the person nominated, in that notice, to accept service of it,

his membership of the scheme shall be cancelled and the contributions (if any) paid to the scheme by him or for him shall be returned, as soon as reasonably practicable, to the person who paid them.

(3)Where a counter-notice of the kind mentioned in paragraph (2)(b) is properly addressed, pre-paid and served by post, it shall be deemed to have been duly served on the day on which it was posted.

20Transitional provisions#

(1)During the period beginning on 1st July 1988 and ending on 5th April 1989 the Board may in their discretion issue an appropriate scheme certificate, notwithstanding that they have not satisfied themselves that the scheme in question satisfies the conditions for the issue of such a certificate, on the basis of—

(a)the information specified in paragraph (2) given by the administrators of the scheme; and

(b)an undertaking, given by any person having power to alter any of the rules of the scheme in question, to the effect specified in paragraph (3); and

(c)an undertaking, given by the person who or body which has established the scheme, to the effect specified in paragraph (4).

(2)The information mentioned in paragraph (1)(a) is to the effect that, to the best of the belief of the administrators, the documents submitted with the application satisfy the requirements for the issue of an appropriate scheme certificate in relation to the scheme in question.

(3)The undertaking mentioned in paragraph (1)(b) is to the general effect that the person giving it will—

(a)use his best endeavours to make, within such time as the Board may specify, such alterations to the rules of the scheme (having effect from the date from which the appropriate scheme certificate has effect) as may be necessary to make the scheme satisfy the requirements of Schedule 1 to the Act; and

(b)within such time as the Board may specify lodge with the Board copies of the rules as so altered.

(4)The undertaking mentioned in paragraph (1)(c) is to the effect that where, as a result of the Board’s cancelling the appropriate scheme certificate because alterations as mentioned in paragraph (3)(a) have not been made within the time specified by the Board, any person has incurred financial obligations in respect of personal pension protected rights premiums, the person or body giving the undertaking will provide any additional funds necessary to enable those financial obligations to be met.

(5)For the purpose of section 5(8) of the Act, in a case where—

(a)the Board have issued an appropriate scheme certificate by virtue of paragraph (1) and have subsequently cancelled it with effect from a date which is later than that with effect from which they issued it; and

(b)the rules of the scheme as regards the protected rights of members are not in accordance with Schedule 1 to the Act,

the rules of the scheme shall be deemed to make any such provision as the Board may consider necessary to ensure that its members have protected rights which are in accordance with that Schedule.

Schedule 1 · Kinds of unit trust scheme that may be an appropriate scheme

Part I · kinds of unit trust scheme

Part II · definitions

Schedule 2 · Information to be included in notice

(1)The right of the member to cancel his membership of the scheme.

(2)The provisions of section 15(1) of the Act, the scheme rules and of these regulations which govern the exercise of the right referred to in paragraph 1 of this Schedule.

(3)The name and address of the person on whom the member’s counter-notice, mentioned in regulation 19 of these regulations, should be served.

(4)The type of account, or accounts, in which contributions to the scheme are invested.

(5)The rate of interest, at the time when the notice is served, which is accruing to contributions of members of the scheme which are then invested.

(6)The part—

(a)of any payment or payments that are made to the scheme by or on behalf of a member;

(b)of any income arising from the investment of payments such as are mentioned in sub-paragraph (a) of this paragraph; or

(c)of the value of rights under the scheme,

(i)to defray the administrative expenses of the scheme;

(ii)to pay commission; or

(iii)in any other way which does not result in the provision of benefits for or in respect of members.

that may be used (otherwise than as an unidentifiable element in the calculation of interest on invested contributions)—

(7)How tax relief on members' contributions is effected.

(8)How the cessation of the making of contributions to the scheme by a member of it, not less than 21 days after he becomes a member of it, but before the end of the period for which he could continue making such contributions, would affect the member’s rights under the scheme.

(9)The address to which enquiries about the scheme generally or about an individual’s entitlement to benefit should be sent.

Contains public sector information licensed under the Open Government Licence v3.0.

The Personal Pension Schemes (Appropriate Schemes) Regulations 1988

The Personal Pension Schemes (Appropriate Schemes) Regulations 1988

1Citation, commencement and interpretation#

2Forms of schemes which may be appropriate schemes#

3Persons who and bodies which may establish schemes#

4Information to be included in an application for an appropriate scheme certificate#

5Issue of appropriate scheme certificates#

6Further information and change of circumstances#

7Applications for the variation of, and to surrender, appropriate scheme certificates#

8Determination of question arising on an application for the issue of an appropriate scheme certificate#

9Determination of question arising on an application with a view to the variation or surrender of an appropriate scheme certificate#

10Other circumstances in which the Board may cancel an appropriate scheme certificate#

11Determination of questions#

19Cancellation of membership of interest-bearing account-funded appropriate personal pension schemes#

20Transitional provisions#

Schedule 1 · Kinds of unit trust scheme that may be an appropriate scheme

Part I · kinds of unit trust scheme

Part II · definitions

Schedule 2 · Information to be included in notice

Defined terms · 6

Connections

History · 1 version

1Citation, commencement and interpretation#

2Forms of schemes which may be appropriate schemes#

3Persons who and bodies which may establish schemes#

4Information to be included in an application for an appropriate scheme certificate#

5Issue of appropriate scheme certificates#

6Further information and change of circumstances#

7Applications for the variation of, and to surrender, appropriate scheme certificates#

8Determination of question arising on an application for the issue of an appropriate scheme certificate#

9Determination of question arising on an application with a view to the variation or surrender of an appropriate scheme certificate#

10Other circumstances in which the Board may cancel an appropriate scheme certificate#

11Determination of questions#

19Cancellation of membership of interest-bearing account-funded appropriate personal pension schemes#

20Transitional provisions#

Schedule 1 · Kinds of unit trust scheme that may be an appropriate scheme

Part I · kinds of unit trust scheme

Part II · definitions

Schedule 2 · Information to be included in notice

Key facts