An
occupational pension scheme can buy shares in a
sponsoring employer provided that the amount used is less than 5%
of the fund value as at the date of the transaction. 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.
| Glossary ( RPSM20000000) |
