RPSM07200130 - Member Pages: Investments: How many shares in my company can my pension scheme purchase?

How many shares in my company can my pension scheme purchase?

An occupational pension scheme that is a registered pension scheme can buy shares in a sponsoring employer provided that the amount used is less than 5% of the net fund value as at the date of the transaction. This limit applies regardless of whether or not the shares are quoted on a recognised stock exchange. If there is more than one employer the 5% limit can be applied to all of them individually provided that the total invested is less than 20% of the fund. The scheme could own 100% of the shares in one employer provided that the cost of them equates to less than 5% of the fund value.

These limits would not apply to a non-occupational pension scheme as there is no sponsoring employer and therefore no limit on share purchase.

To find out whether or not your scheme is an occupational scheme, you should contact your scheme administrator.

Glossary ( RPSM20000000)