Pensions Act 1995

35 Investment principles

(1) The trustees of a trust scheme must secure that there is prepared, maintained and from time to time revised a written statement of the principles governing decisions about investments for the purposes of the scheme.

(2) The statement must cover, among other things—

(a) the trustees' policy for securing compliance with sections 36 and 56, and

(b) their policy about the following matters.

(3) Those matters are—

(a) the kinds of investments to be held,

(b) the balance between different kinds of investments,

(c) risk,

(d) the expected return on investments,

(e) the realisation of investments, and

(f) such other matters as may be prescribed.

(4) Neither the trust scheme nor the statement may impose restrictions (however expressed) on any power to make investments by reference to the consent of the employer.

(5) The trustees of a trust scheme must, before a statement under this section is prepared or revised—

(a) obtain and consider the written advice of a person who is reasonably believed by the trustees to be qualified by his ability in and practical experience of financial matters and to have the appropriate knowledge and experience of the management of the investments of such schemes, and

(b) consult the employer.

(6) If in the case of any trust scheme—

(a) a statement under this section has not been prepared or is not being maintained, or

(b) the trustees have not obtained and considered advice in accordance with subsection (5),

sections 3 and 10 apply to any trustee who has failed to take all such steps as are reasonable to secure compliance.

(7) This section does not apply to any scheme which falls within a prescribed class or description.