Requirement for annual declaration
12.—(1) For the purposes of section 1(1)(b), it shall be a condition of a scheme being a stakeholder pension scheme that the requirements of this regulation are complied with.
(2) The trustees or manager of the scheme shall, at least once a year, make a declaration in writing signed by the trustees or manager containing the following statements in relation to the period of 12 months ending on a date not earlier than 3 months prior to the date of the declaration—
(a)that regulations 13 and 14 of these Regulations have been complied with in relation to the scheme;
(b)that the scheme’s systems and controls are designed and used in a way that ensures that transactions in securities, property or other assets occur at a fair market value;
(c)that the scheme’s system of determining the value of members' rights is designed and used in a way that ensures that the value of members' rights has been determined in accordance with the provisions in the instruments establishing the scheme; and
(d)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.
(3) The declaration mentioned in paragraph (2) shall also contain a statement which—
(a)explains that regulations 13 and 14 of these Regulations impose limits on the amount of charges which may be made by a stakeholder pension scheme and on the manner in which charges may be made by such a scheme; and
(b)explains that regulation 18(2) of these Regulations requires a stakeholder pension scheme to provide an annual benefit statement to each member.
(4) In the case of a scheme established under a trust, the trustees shall, within 3 months of the date of the declaration, obtain from the scheme auditor appointed by virtue of section 47(1) of the 1995 Act (professional advisers) or from the reporting accountant—
(a)a statement whether, in the auditor’s or reporting accountant’s opinion, it was or was not unreasonable for the trustees to make the statements contained in the declaration, or
(b)to the extent that the auditor or reporting accountant is unable to express such an opinion, an explanation of why he is unable to do so.
(5) In the case of a scheme not established under a trust, the manager shall, within 3 months of the date of the declaration, obtain from the reporting accountant appointed by virtue of regulation 11—
(a)a statement whether, in the opinion of the reporting accountant, it was or was not unreasonable for the manager to make the statements contained in the declaration, or
(b)to the extent that the reporting accountant is unable to express such an opinion, an explanation of why he is unable to do so.
(6) The trustees or manager shall annex to the declaration mentioned in paragraph (2) the statement obtained in accordance with paragraph (4) or (5).
(7) The trustees or manager shall make available to members and beneficiaries of the scheme on request the declaration mentioned in paragraph (2) annexing the statement obtained in accordance with paragraph (4) or (5).