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Promotion and marketing: introduction

CDC code in force: 31 July 2026

  1. This is a new authorisation criterion specifically for multi-employer CDC schemes. This is because the legislation1 introduces commerciality into the regime. It is envisaged that there will be a number of competing multi-employer CDC schemes in the market. This means it is highly likely promotional activities will take place between the scheme and (prospective) employers to induce them into joining or remaining within the scheme. This section of the code sets out our expectations in respect of promotion and marketing, when applying for authorisation and when meeting authorisation criteria on an ongoing basis.
  2. If we believe that elements of our code concerning marketing and promotion are not being complied with, we can use our powers to ensure schemes comply.
  3. The Pension Schemes Act 2021 defines promotion and marketing as follows:
    1. “ ‘promotion or marketing’ of a scheme means any communication about the scheme for the purpose of inducing a prospective employer to use, or an employer to continue to use, the scheme (whether or not that communication is accompanied by an offer of, or provision of, a benefit) and ‘promote or market’ is to be construed accordingly.”
  4. The 2021 Pension Schemes Act does not define ‘inducing’ or an ‘inducement’. However, as this term already exists in other legislation and is widely understood in the contract-based world (Financial Conduct Authority (FCA) regulated space), there should be consistency in the trust-based occupational pension space. The FCA uses an objective test to determine whether an item is a financial promotion, and we expect CDC schemes to adopt the same test, which is, at the time the communication was made would a reasonable observer (taking into account all of the circumstances at the time the communication was made)2:
    1. consider that the communicator intended the communication to persuade or incite the recipient to engage in investment activity, or that was its purpose
    2. regard the communication as seeking to persuade or incite the recipient to engage in investment activity
  5. In the context of the paragraph above investment activity means inducing an employer into enrolling workers into a pension scheme or offering membership in a pension scheme.

Accuracy of promotional or marketing material

  1. Where applicable, all materials must accurately describe the features of the scheme and be consistent with the information contained in:
    1. the document prepared by the scheme actuary for the purposes of the viability report
    2. the document prepared by the trustees confirming that the viability report is the most recent viability report at the time of the promotion or marketing
    3. any summary published most recently in relation to the scheme at the time of the promotion or marketing

Transparency of promotional or marketing material

  1. Where applicable, all promotional or marketing materials must clearly and accurately explain (and be consistent with other areas of this code)3:
    1. how the rate or amount of benefits provided to members under the scheme is determined, including supporting illustrations of what individual members might receive
    2. that performance of investments can fluctuate
    3. that the expected value of the rights to benefits is not guaranteed
    4. that levels of the rate or amount of benefits provided to members under the scheme can fluctuate
    5. what would happen if the scheme became unable to continue to operate
    6. any other matters set out in this code 

Clear and not misleading

  1. The 2025 Regulations4 set out requirements that these promotions must be clear and not misleading, and any errors/inaccuracies which would render the item either unclear or misleading or both, should be rectified as soon as reasonably practicable after they have been identified.
  2. To ensure promotional material is clear and not misleading, there must be appropriate systems and processes in place and individuals who have appropriate skills to undertake promotional activities.
  3. While trustees are prohibited from conducting any promotional or marketing activities on behalf of the scheme, they are not prohibited from meeting with prospective and existing employers to provide factual information regarding the scheme or general information about how a CDC scheme operates. This would include:
    1. the number of members and assets under management
    2. details of how the scheme is administered
    3. how they interact with the scheme proprietor and monitor the effectiveness of the scheme’s governance
    4. the differences between a CDC scheme and a DC scheme

Types of promotion or marketing

  1. Promotion and marketing can be identified as either real time or non-real time.

Real time

  1. Real time would capture conversations between the scheme proprietor or a delegated individual who acts on their behalf, and an employer (either existing or a prospective employer). It would also include presentations that may be given to an employer or group of employers. Due to the nature of real time promotions, we wouldn’t expect them to be formally approved, however any material that is shown alongside, such as slide packs, must be approved before use to ensure they are clear and not misleading.

Non-real time

  1. Non-real time promotional or marketing materials would constitute any written, printed or electronic items (including emails, social media posts and broadcast advertisements) that are used to induce an employer to either join or remain within the scheme. All material of this type must be approved for use as clear and not misleading and reviewed regularly to ensure it remains so.
  2. Systems and processes for giving approval should include the following types of promotion or marketing material:
    1. brochure
    2. leaflet
    3. flyer
    4. poster
    5. social media posts
    6. radio/TV advertisement
    7. printed advertisement
    8. online advertisement (needs to be clear and not misleading in own right)
    9. online search engine entry (needs to be clear and not misleading in own right)
    10. CDC provider and scheme websites, including scheme microsites developed for members
  3. Bar some exceptions detailed below, approval is not required for:
    1. in-person sales pitches and negotiations, except for slides, leaflets or any other accompanying material used (including a trade stand)
    2. sales pitches or presentations to an employer or group of employers, except for slides, leaflets or any other accompanying material used (including a trade stand)
    3. trustee meetings with employers or prospective employers, however the use of any promotional/marketing material is prohibited for these meetings
  4. Slides may be approved with the ability to add bespoke details of the potential 
    customer at a later date, as long as the rest of the content is deemed clear and 
    not misleading.

Legal references

1 Sections 9(3)(cb) and (cc), 14D, and Schedule 1C to the Pension Schemes Act 2021 and Regulations 29(5) and (6), and 46(o) and (p) of the 2025 Regulations

2 The Perimeter Guidance Manual (PERG) 8.4 FCA Handbook

3 Section 114D(1) and Paragraph 2(1) of Schedule 1C to the Pension Schemes Act 2021

4 Section 9(1)(cb) of the Pension Schemes Act 2021

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