1 Section 9(3)(ca)(i) of the Pension Schemes Act 2021
2 Sections 14B and 14C of the Pension Schemes Act 2021
Scheme proprietor: overview
CDC code in force: 31 July 2026
- Multi-employer CDC schemes must have a scheme proprietor1 and only one, who must be a body corporate or partnership within the meaning given in section 1173(1) of the Companies Act 2006, and that is a legal person under the law by which it is governed2.
- The proprietor is responsible for making business decisions relating to any commercial activities of the scheme. This means that the scheme proprietor must prepare a business plan for the scheme, share with the trustees for approval, and submit to us.
- The proprietor is liable to provide funds to or in respect of the scheme for the purposes of meeting some or all of the costs of setting up the scheme, and some or all of the costs relating to obtaining authorisation of the scheme. This includes providing funds to, or in respect of, the scheme where administration charges to members are not sufficient to cover the balance (if any) of the costs of obtaining authorisation, or of setting up and running the scheme.
- In the event of a triggering event the proprietor must be able to provide funds to the scheme to meet the costs of compliance and run-on costs.
- The proprietor must not be a trustee of the scheme. The intent of this is to ensure that the relationship between the scheme proprietor and the scheme is a transparent one. Where we are not satisfied that sufficient transparency exists, we are unlikely to be able to authorise the scheme. Provided that all other requirements are met, and where the trustee is a body corporate, the scheme proprietor may be owned by the trustee.
- It is important that relations between the scheme proprietor and the trustees are open, appropriate and well managed.
- For a multi-employer CDC scheme to be authorised we will assess the scheme proprietor for their fitness and propriety for the role.
- We must be satisfied that the scheme proprietor is capable of meeting the costs of setting up, authorising, and running the scheme. We must also be satisfied that the necessary resources are available from the outset from a credible source, and that the prospective proprietor has made adequate provision within their business planning for the cost eventualities that arise. The scheme proprietor’s available resources also need to be sufficient to cover any costs associated with a triggering event occurring.
- As part of our assessment of a multi-employer CDC scheme authorisation application, and ongoing supervision, we will assess the accounts of the scheme proprietor whilst checking we are satisfied of the scheme’s financial sustainability.