CDC code in force: 1 August 2022
The Regulations set out the matters that we must take into account when determining whether we are satisfied that a CDC scheme is operated by fit and proper personsHW1. In assessing this, we will consider the current and past behaviour of persons (conduct), their competence to fulfil the requirements of their role at the scheme, and any relevant financial matters. We will also consider:
- the impact on others of the past or current behaviour or actions
- how long ago the issue occurred
- whether there has been a pattern of behaviour which creates concern
The following modules (Honesty, integrity and financial soundness, Trustee competence and Conduct of individuals) describe the factors that are more likely to satisfy us that a person is fit and proper. In a few serious matters, for example certain unspent criminal convictions or bankruptcy, we are very unlikely to be satisfied that an individual is fit and proper. This is because these are strong indicators that a person lacks the integrity or competence needed to be charged with the care of members’ pension savings and managing their scheme.
If an application is submitted where these serious matters are relevant to an individual, trustees should explain how they took reasonable steps to satisfy themselves that the individual meets the requirement to be fit and proper.
In some cases, an individual will automatically be barred under existing legislation from acting in certain capacities; for example, an undischarged bankrupt cannot be a trustee.
Legal reference
HW1 Regulation 8 and Schedule 1 to the Regulations