The Occupational Pension Schemes (Charges and Governance) Regulations 2015

[F1Restrictions on chargesU.K.

4.—(1) Subject to regulations 9 and 10, the trustees or managers of a relevant scheme[F2, that is not a collective money purchase scheme,] must not impose or permit to be imposed on a member of that scheme to whom [F3this Chapter] applies charges which—

(a)exceed the limits specified in [F3this Chapter[F4, with the exception of regulation 6A]]; or

(b)are of a description prohibited by [F3this Chapter][F5, with the exception of [F6regulations 5A and] 11A].

[F7(1ZA) Subject to regulation 9, the trustees of a relevant scheme that is a qualifying collective money purchase scheme must not impose or permit to be imposed on the members of that scheme, in respect of members’ rights under the scheme, charges which—

(a)exceed the limits specified in this Chapter, with the exception of regulation 6; or

(b)are of a description prohibited by this Chapter, with the exception of regulations 5, 11 and 11A.]

[F8(1A) Subject to regulation 11C, a service provider must not impose or permit to be imposed on a member to whom regulation 11A applies charges which are of a description prohibited by that regulation.]

(2) With the exception of [F9regulations [F105A, 6A, 7A, 8A,] 11 and 11A], [F11this Chapter] applies—

(a)to a member of a relevant scheme[F12, that is not a collective money purchase scheme,] to the extent of the value of that member's rights under a default arrangement; and

(b)beginning with the date on which the first contribution to the default arrangement referred to in sub-paragraph (a) is received by the trustees or managers on or after the date on which this regulation comes into force.

[F13(3) [F14For the purposes of paragraph (2), the] application of this regulation and regulations [F155, 6, 7, 8 and 9] in respect of the value of a member’s rights is not affected by—

(a)a transfer of those rights from one relevant scheme to another [F16(unless the receiving scheme is a qualifying collective money purchase scheme)]; or

(b)a subsequent transfer of those rights from one arrangement to another within the receiving scheme,

where the member has not given consent to the transfer.

[F17(3A) If the receiving scheme referred to in paragraph (3) is a collective money purchase scheme (other than a qualifying collective money purchase scheme), this regulation and regulations 5, 6, 7, 8 and 9 apply in respect of the value of a member’s rights, following any such transfer, as if the person was a member of a relevant scheme within the meaning of regulation 2(2)(a) or (b) to whom this Chapter applies in accordance with paragraph (2) (unless the person is a pensioner member of the receiving scheme, including a person who has become a pensioner member of the receiving scheme after the transfer).

(3B) Subject to paragraph (3C), the application of this regulation and regulations 5A, 6A, 7A, 8A and 9 in respect of a member of a relevant scheme that is a qualifying collective money purchase scheme is not affected by a transfer of the member’s rights to a relevant scheme, where the member has not given consent to the transfer.

(3C) Paragraph (3B) does not apply in respect of the transfer of a member’s rights from a qualifying collective money purchase scheme to a relevant scheme (within the meaning of regulation 2(2)(a) or (b))—

(a)if this Chapter (with the exception of regulations 5A, 6A, 7A, 8A, 11 and 11A) would otherwise apply to the member by virtue of paragraph (2) upon their rights being transferred; or

(b)if the member is a pensioner member of the qualifying collective money purchase scheme.

(3D) If a member’s rights are transferred from a relevant scheme that is a qualifying collective money purchase scheme to a relevant scheme that is not a qualifying collective money purchase scheme (and paragraph (3B) applies in respect of the transfer of that member’s rights)—

(a)this regulation and regulations 5A, 6A, 7A, 8A and 9 apply in respect of that member (and any other members whose rights have been transferred at the same time) as if the person was a member, or as if the persons were members, of a qualifying collective money purchase scheme (unless the relevant scheme to which the rights are transferred is not a collective money purchase scheme and any such person is a pensioner member of the scheme, including a person who has become a pensioner member of the scheme after the transfer); and

(b)references in this regulation and in regulations 5A, 6A, 7A, 8A and 9 to members of a qualifying collective money purchase scheme are to be read as references to those members subject to the transfer.]

(4) [F18This Chapter does not apply to a member of a relevant scheme that is not a collective money purchase scheme] to the extent of the value of that member’s rights in an arrangement (“Arrangement A”) where—

(a)the value of the rights has been transferred to Arrangement A from an arrangement which is not a default arrangement;

(b)the member has not given consent to the transfer;

(c)before the transfer took place, Arrangement A was not a default arrangement; and

(d)the member has, in the 5 years ending with the date of the transfer, expressed a choice as to where his or her contributions were allocated.]]

[F19(5) In this regulation, “pensioner member” has the meaning given in section 124(1) of the 1995 Act.]