XN000022-1990-07-27 — Page 3

FRIDAY, JULY 27, 1990

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WHITE BILL ON REGULATION OF RETIREMENT SCHEMES PUBLISHED

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A WHITE BILL WHICH SETS OUT THE LEGISLATIVE PROPOSALS ON THE PRUDENTIAL REGULATION OF PRIVATE RETIREMENT SCHEMES IS GAZETTED TODAY (FRIDAY).

RELEASING DETAILS OF THE OCCUPATIONAL PENSION SCHEME (COMMERCE, TRADE & INDUSTRY ETC) BILL AT A PRESS CONFERENCE, THE SECRETARY FOR MONETARY AFFAIRS, MR DAVID NENDICK POINTED OUT THAT THE PUBLIC WOULD BE GIVEN TWO MONTHS TO EXPRESS THEIR VIEWS.

THE

PROPOSALS ARE LARGELY THE SAME AS THOSE CONTAINED IN THE CONSULTATIVE DOCUMENT ISSUED IN JUNE 1988.

"THE REGULATION OF RETIREMENT SCHEMES IS A NOVEL AND COMPLICATED SUBJECT AND PROPOSALS WILL AFFECT SOLICITORS, ACCOUNTANTS, ACTUARIES, AUTHORISED INSURERS AND TRUSTEES WHO ARE OR WILL BE INVOLVED IN THE OPERATION OF RETIREMENT SCHEMES.

"WE THEREFORE CONSIDER IT APPROPRIATE TO CONSULT THE PUBLIC AND THE PROFESSIONALS ON THE REGULATORY PROPOSALS IN THE FORM OF A WHITE BILL, HE SAID.

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"THE PRIME OBJECTIVE OF THE REGULATORY SYSTEM IS TO ENSURE THAT RETIREMENT BENEFITS WILL BE PAID WHEN THEY FALL DUE, MR NENDICK EXPLAINED.

"IT IS NOT TO REQUIRE EMPLOYERS TO SET UP RETIREMENT SCHEMES OR TO SPECIFY A MINIMUM LEVEL OF BENEFITS, HE ADDED.

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A SYSTEM OF REGISTRATION IS PROPOSED AND TO OBTAIN REGISTRATION, A RETIREMENT SCHEME MUST COMPLY WITH CERTAIN BASIC REGISTRATION REQUIREMENTS. THESE INCLUDE SEPARATION OF ASSETS, PROVISION OF ADEQUATE FUNDING, CONDUCTING INDEPENDENT AUDIT AND DISCLOSURE OF INFORMATION.

"THE BILL PROVIDES FOR THE ESTABLISHMENT OF A REGISTRAR OF OCCUPATIONAL PENSION SCHEMES AND SETS OUT THE REGISTRATION REQUIREMENTS IN DETAIL.

**AN APPLICATION FOR REGISTRATION MUST BE ACCOMPANIED BY AN AFFIDAVIT BY A SOLICITOR CERTIFYING WHETHER THE SCHEME IS SET UP UNDER TRUST OR AN ASSURANCE ARRANGEMENT AS WELL AS THE PROPER LAW OF THE SCHEME.

PROPER

"A FURTHER AFFIDAVIT BY THE REGISTRAR, CERTIFYING THAT BOOKS AND ACCOUNTS ARE MAINTAINED, IS ALSO REQUIRED. THIS IS TO ENSURE THAT, AMONG OTHER THINGS, ASSETS OF THE SCHEME ARE SEPARATED FROM THOSE OF THE EMPLOYER," HE SAID.

/IN ADDITION