Changes to the rules on who can establish a registered pension scheme that is not an occupational pension scheme

The Government is amending the rules on who can establish a registered pension scheme that is not an occupational pension scheme. This will have an impact on the registration process.

From 6th April 2007 an application to register a pension scheme, that is not an occupational pension scheme, can be made only if the pension scheme has been established by a person who has (or persons who have) permission from the Financial Services Authority (FSA) to establish in the UK a personal pension scheme or a stakeholder pension scheme.

The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2006 (SI 2006/1969) has widened the regulated activity relating to stakeholder pension schemes so that it extends to all personal pension schemes, including self-invested personal pension schemes.

The effect of this Order is that, from 6 April 2007, the FSA has responsibility for regulating the operation of personal pension schemes as well as stakeholder pension schemes.

The FSA has been accepting applications for permission to carry on this new regulated activity since October 2006. Persons already authorised to establish, operate or wind up stakeholder pension schemes will be automatically granted permission to carry on the new similar regulated activity for personal pension schemes.
This will mean that any application to register a new pension scheme, which is not an occupational pension scheme, made by a person (currently) listed in section 154 of Finance Act 2004 (for example, an insurance company or a building society) must be made before 6th April 2007. In practice, this will mean that the application must be received by HM Revenue and Customs no later than Thursday 5th April 2007. An application for registration in respect of such a scheme could not be made on or after 6th April 2007 unless, as a matter of fact, the person establishing the scheme has FSA permission to carry on the new regulated activity in relation to personal pension schemes or stakeholder pension schemes. Persons who register schemes before 6th April 2007 will, if they also act as operator of a scheme, still require FSA authorisation and permission for operating their schemes after that date.