RPSM02102010 - Technical pages: Registering a pension scheme with HMRC: conditions for registration: Who may set up a registered pension scheme?

Who may set up a registered pension scheme?

The Government wants registered pension schemes to be either subject to regulation by the Pensions Regulator, or set up by persons who are subject to regulation by the Financial Services Authority (FSA). This is to provide some reassurance about who has established the pension scheme, and to give scheme members recourse to an independent regulatory body if they are unhappy with particular aspects of the scheme.

6 April 2006 to 5 April 2007

For a pension scheme to apply to be registered with HMRC between 6 April 2006 and 5 April 2007, it had to have been established by one of the following

• an employer - if the membership of the scheme is open to its own, or any other employees. (Such a scheme is an occupational pension scheme, even if other people may also join the scheme.)
• more than one employer (collectively) - if the membership of the scheme is open to their own or any other employees. (Such a scheme is an occupational pension scheme, even if other people may also join the scheme.)
• Government Departments or Ministers and UK Parliamentary bodies (such a scheme will be a " public service pension scheme")
• an insurance company
• a unit trust scheme manager
• an operator, trustee or depositary of a recognised European Economic Area (EEA) collective investment scheme
• an authorised open-ended investment company (OEIC)
• a building society
• a bank
• a European Economic Area (EEA) investment portfolio manager.

From 6 April 2007

The rules on who can establish a registered pension scheme that is not an occupational pension scheme were changed with effect from 6 April 2007. For pension schemes applying for registration with HMRC on or after that date, the scheme must be established by a person with permission under the Financial Services and Markets Act 2000 to establish in the UK a personal pension scheme or a stakeholder pension scheme.

There was no change to the rules on who can establish a registered pension scheme that is an occupational pension scheme (an employer or employers, see first two bullets above) or a public service pension scheme (see third bullet above).

FSA permission

The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (SI 2001/544) was amended by SI 2006/1969 to widen the regulated activity relating to stakeholder pension schemes so that it extends to all personal pension schemes, including self-invested personal pension schemes. This new regulated activity was introduced from 6 April 2007.