PSI4.4.7 - Free Standing AVC Schemes (FSAVCSs): Rule Requirements For Approval

(This archived guidance relates to HMRC discretionary practice before the 6th April 2006. For current guidance on Registered Pension Schemes see the Registered Pension Schemes Manual)

The coming into force of The Retirement Benefits Schemes (Restriction on Discretion to Approve) (Additional Voluntary Contributions) Regulations 1993 [SI 1993 No 3016] means that FSAVC schemes cannot be approved on or after 27 December 1993 unless they have provisions that satisfy the requirements of the regulations (see PSI4.3.14). The following standard wording can be accepted as meeting the requirements of the regulations:

“The administrator of the scheme shall comply with the requirements of Regulation 4 of The Retirement Benefits Schemes (Restriction on Discretion to Approve) (Additional Voluntary Contributions) Regulations 1993 [SI 1993 No 3016] and where the scheme is the leading scheme in relation a member, with the requirements of Regulation 6 of those Regulations so far as they concern free-standing additional voluntary contributions schemes. If these Regulations are amended or replaced by any other Regulations then this clause will have effect as if it had been amended or replaced accordingly.”

Contact: | Date issued: | Next review: