xmlns:atom="http://www.w3.org/2005/Atom" xmlns:atom="http://www.w3.org/2005/Atom"
Modifications etc. (not altering text)
C1Pt. I modified (6.4.1997) by The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 1997 (S.I. 1997/786), regs. 1, 2
C2Pt. I applied (with modifications) (6.4.1997) by The Personal and Occupational Pension Schemes (Miscellaneous Amendments) Regulations 1997 (S.I. 1997/786), reg. 2
C3Pt. I: Pensions Act 2004 (c.35), Pt. 3 construed as one with Pt. I of this Act (4.12.2005 for specified purposes, 30.12.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), ss. 233, 322(1) (with s. 313); S.I. 2005/3331, art. 2(1)(a)(b), Sch. Pt. 1
(1)The trustees or managers of an occupational pension scheme must secure that the scheme complies with any prescribed restrictions with respect to the proportion of its resources that may at any time be invested in, or in any description of, employer-related investments.
(2)In this section—
“
” means—shares or other securities issued by the employer or by any person who is connected with, or an associate of, the employer,
land which is occupied or used by, or subject to a lease in favour of, the employer or any such person,
property (other than land) which is used for the purposes of any business carried on by the employer or any such person,
loans to the employer or any such person, and
other prescribed investments,
F1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
[F2(2A)In the definition of “employer-related investments” in subsection (2) “securities” means—
(a)shares,
(b)instruments creating or acknowledging indebtedness,
(c)instruments giving entitlements to investments,
(d)certificates representing securities.]
[F2(2B)Subsection (2A) must be read with—
(a)section 22 of the Financial Services and Markets Act 2000,
(b)any relevant order made under that section, and
(c)Schedule 2 to that Act.]
(3)To the extent (if any) that sums due and payable by a person to the trustees or managers of an occupational pension scheme remain unpaid—
(a)they shall be regarded for the purposes of this section as loans made to that person by the trustees or managers, and
(b)resources of the scheme shall be regarded as invested accordingly.
(4)If in the case of a trust scheme subsection (1) is not complied with, [F3section 10 applies] to any trustee who fails to take all such steps as are reasonable to secure compliance.
(5)If any resources of an occupational pension scheme are invested in contravention of subsection (1), any trustee or manager who agreed in the determination to make the investment is guilty of an offence and liable—
(a)on summary conviction, to a fine not exceeding the statutory maximum, and
(b)on conviction on indictment, to a fine or imprisonment, or both.
Textual Amendments
F1Words in s. 40(2) repealed (1.12.2001) by The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 (S.I. 2001/3649), arts. 1, 141(2)
F2S. 40(2A)(2B) substituted (4.3.2004) by The Financial Services and Markets Act 2000 (Consequential Amendments) Order 2004 (S.I. 2004/355), arts. 1(1), 5(2)
F3Words in s. 40(4) substituted (4.12.2005 for specified purposes, 30.12.2005 in so far as not already in force) by Pensions Act 2004 (c. 35), s. 322(1), Sch. 12 para. 51; S.I. 2005/3331, art. 2(1)(a)(b), Sch. Pt. 1
Commencement Information
I1S. 40 in force at 6.4.1996 for specified purposes by S.I. 1996/778, art. 2(5)(a), Sch. Pt. V
I2S. 40 in force at 6.4.1997 in so far as not already in force by S.I. 1997/664, art. 2(3), Sch. Pt. 3