Member nominated trustees directors

Trustees are required to ensure that arrangements are in place, and implemented, that provide for at least one-third of trustees, or at least one-third of directors of the trustee company, to be member-nominated.

This guidance is to be read with Code 08: MNT/MND - putting arrangements in place.

Introduction

Provided that some basic requirements are met, trustees will have the flexibility to design arrangements which best suit their scheme.

The following pages include information on the legal requirements or you can use the decision tree to identify the legal requirements for your scheme.

Trustees first need to establish whether the member-nominated trustee (MNT) or member-nominated director (MND) requirements apply to their scheme and when the MNT or MND requirements apply to their scheme. Trustees will need to then put arrangements in place.

There are some special provisions for schemes that had arrangements in place under the Pensions Act 1995 on 5 April 2006.

Do the MNT and MND requirements apply?

To determine whether any action is required of them, trustees need to:

establish which of the MNT or MND requirements apply;

and then

establish whether any of the exemptions in the law apply to their scheme.

If the scheme is not exempt trustees will need to put arrangements in place and implement those arrangements.

Trustees should also check when the requirements apply to their scheme as this varies depending upon the circumstances of the scheme.

Establishing which requirements apply - MNTs or MNDs?

Whether a scheme needs MNTs or MNDs depends upon the constitution of the trustee body.

The MND requirements apply when the trustee body is a company or all companies and there are no individuals as trustees. Where the trustee body is made up of individuals or a mix of individuals and companies, the MNT requirements apply. Paragraphs 19 – 21 of the code of practice provide more information.

Trustees should review the make-up of the trustee body in the trust deed and rules to establish whether it is the MNT or MND requirements which apply to their scheme.

The next step for trustees is to establish whether any of the legal exemptions apply.

Establishing whether any of the legal exemptions from the MNT and MND requirements apply

The requirements for MNTs or MNDs only apply to trustees of occupational pension schemes set up under trust. However, not all of these schemes have to meet the requirements. Some types of schemes are exempt under the law.

The types of schemes that are exempt depend upon whether it is the MNT or MND requirements which apply to a scheme. For help with determining which requirements apply to your scheme see MNTs/MNDs: Establishing which requirements apply.

We have provided a list of the exemptions for trustees to review to establish whether any apply.

Exemptions from the MNT requirements
Exemptions from the MND requirements

Trustees should keep the exemptions under review and check periodically whether the requirements apply to their scheme. This is because it is possible for some of the exemptions to apply to a scheme at some points and not at others.

For example, schemes with one member are exempt so a change in the numbers of members may mean that a scheme that was exempt is no longer or that a scheme that was subject to the requirements is now exempt.

If the scheme is not exempt trustees will need to put arrangements in place, and implement those arrangements, that provide for at least one-third of trustees to be member-nominated. Putting arrangements in place provides more information for trustees on considering, designing and building arrangements.

Trustees should also check when the requirements apply to their scheme as this varies depending upon the circumstances of the scheme.

Exemptions from the MNT requirements

The exemptions from the MNT requirements can be found in section 241(8) of the Pensions Act 2004 and in regulations 1 and 2 of the Occupational Pension Schemes (Member-nominated Trustees and Directors) Regulations 2006 (SI 2006/714).

They are listed here for information and are accurate as at 6 April 2006. If you think an exemption might apply, you should always check the regulations to make sure it has not been amended.

An occupational pension scheme is exempt for the requirement to have MNTs where one of the following applies:

every member of the scheme is a trustee of the scheme and there are no other trustees;
every trustee is a company (then the MND requirements will apply);
the sole trustee or all the trustees are independent within the meaning given by section 23(3) of the Pensions Act 1995;
section 22 of the Pensions Act 1995 applies to the scheme;
the scheme is independent of the employer by virtue of the employer having been dissolved or liquidated prior to 6 April 2005;
the scheme only has one member;
the scheme is a small insured scheme;
the scheme is a relevant small occupational pension scheme;
the scheme is not required to register with HMRC;
the scheme is a stakeholder pension scheme;
the scheme is a relevant centralised scheme;
the scheme is a direct payment, paid-up insurance scheme;
the scheme is a former old code scheme;
the scheme is a section 615(6) of the Income and Corporation Taxes Act 1988 scheme (superannuation scheme);
the scheme is set up under section 2 of the Parliamentary and other Pensions Act 1987 (a Parliamentary scheme eg for members of the House of Commons);
the scheme has been modified under Schedule 5 to the Coal Industry Act 1994;
the trustee is a body governed by church legislation.

Exemptions from the MND requirements

The exemptions from the MND requirements can be found in section 242(10) of the Pensions Act 2004 and in regulations 1 and 3 of the Occupational Pension Schemes (Member-nominated Trustees and Directors) Regulations 2006 (SI 2006/714).

They are listed here for information and are accurate as at 6 April 2006. If you think an exemption might apply, you should always check the regulations to make sure it has not been amended.

A scheme is exempt for the requirement to have MNDs if the scheme where one of the following applies:

the sole director or all the directors are independent within the meaning given by section 23(3) of the Pensions Act 1995;
section 22 of the Pensions Act 1995 applies to the scheme;
the scheme is independent of the employer by virtue of the employer having been dissolved or liquidated prior to 6 April 2005;
the scheme only has one member;
the scheme is a small insured scheme;
the scheme is a relevant small occupational pension scheme;
the scheme is a relevant executive pension scheme in relation to the company;
the scheme is a relevant wholly insured scheme;
the scheme is not required to register with HMRC;
the scheme is a stakeholder pension scheme;
the scheme is a relevant centralised scheme;
the scheme is a direct payment, paid-up insurance scheme;
the scheme is a former old code scheme;
the scheme is a section 615(6) of the Income and Corporation Taxes Act 1988 scheme (superannuation scheme);
the scheme is set up under section 2 of the Parliamentary and other Pensions Act 1987 (a Parliamentary scheme eg for members of the House of Commons);
the scheme has been modified under Schedule 5 to the Coal Industry Act 1994;
the trustee is a body governed by church legislation.

Independent trustees

A trustee is independent if:

they have no interest in the assets of the employer or the scheme (other than as trustee of the scheme);
they have no connection or association with:
- the employer; or
- any insolvency practitioner appointed to act in relation to the employer; or
- any official receiver appointed to act in relation to the employer;

and

they satisfy other conditions prescribed in regulations. There are currently no other conditions prescribed.

Section 22 of the Pensions Act 1995

Section 22 of the Pensions Act 1995 applies to occupational pension schemes where after 6 April 2005 either:

an insolvency practitioner begins to act either:
- in relation to a company which is the employer of the scheme; or
- in relation to an individual who is the employer of the scheme,

or:

the official receiver becomes:
- the liquidator or provisional liquidator of a company which is the employer of the scheme; or
- the interim receiver of the property of a person who is the employer of the scheme; or
- the receiver and the manager, or the trustee, of the estate of a bankrupt who is the employer of the scheme.

Small insured scheme

This is a scheme with:

fewer than 12 members; and
in which all the benefits are secured with an insurer either under an insurance contract or annuity contract.

Relevant centralised scheme

This is a multi-employer occupational pension scheme where membership is open to the employees of more than one employer and at least two of the employers are not associated or connected, and either:

the power to appoint or remove all of the trustees is not solely with one employer under the rules of the scheme; or
at least one-third of the trustees:
- have no legal or beneficial interest in the assets of any of the employers of the scheme nor are associated or connected with any of the employers; and
- have been selected by some or all of the scheme members or an organisation which represents some or all of the scheme members. Some or all of the members involved in the selection must not be directors of any of the employers of the scheme.

'Employer' or 'employers' in this instance does not include a company or companies acting as a trustee of, or only providing administrative services to, the scheme.

Relevant executive pension scheme

This is a scheme where:

a company is both the only employer in relation to the scheme and the sole trustee; and
the members of the scheme are either current or former directors of that company and include at least one-third of the current directors.

Relevant small occupational pension scheme

This is a scheme with fewer than 12 members and all of these members are trustees, and either:

the rules of the scheme provide that all decisions are made only by the trustees who are members of the scheme and by unanimous agreement; or
the scheme has an independent trustee and that trustee is registered on The Pensions Regulator's register of trustees.

Relevant wholly insured scheme

This is a scheme with only one trustee where all the benefits are secured under contracts of insurance or annuity contracts. Some or all of these insurance or annuity contracts are with an insurance company which:

is the trustee; or
is connected to the trustee;

but:

is not the employer; or
is not connected to the employer.

Direct payment, paid up insurance scheme

This is an occupational pension scheme under which:

no further contributions are payable;
an individual's benefits are decided by the value of rights under an insurance contract (or part of it); and
the insurer and the trustees have agreed that the insurer will pay the benefits directly to the member or to a beneficiary.

Former old code schemes

This is an occupational pension scheme which is now registered with HMRC under chapter 2 of Part 4 of the Finance Act 2004 and was formerly approved under section 208 of the Income and Corporation Taxes Act 1970.

Under the scheme no further contributions are payable and members' benefits are a fixed amount which can only be altered if:

the member retires on a date other than normal pension age; or
the benefits become payable to another.

Church legislation

Church legislation means any Measure of the Church Assembly or of the General Synod of the Church of England. This includes any order or regulation or other instrument made under the Measure.

When do the MNT or MND requirements apply from?

The requirements for trustees to ensure that arrangements are in place, and implemented, that provide for at least one-third of trustees or at least one-third of directors of the trustee company to be member-nominated, start to apply from what is known as the 'commencement date'.

The commencement date varies depending upon the circumstances of the scheme:

If an opt-out was in place on 5 April 2006, the commencement date is the earliest of:
- the date members' approval of the opt-out ends;
- the date the trustees or employer bring the opt-out to an end ; or
- 31 October 2007.

If you want to know more about the considerations for trustees of these schemes see Opt-out in place.

If the scheme has MNTs or MNDs appointed under the Pensions Act 1995 in place on 5 April 2006, the commencement date is 6 April 2006.

If you want to know more about the considerations for trustees of these schemes see MNTs or MNDs appointed under the Pensions Act 1995.

If the scheme is established after 6 April 2006, the commencement date is the date the scheme is established.

Take a look at the flowchart for help in determining the commencement date for your scheme.

From the commencement date, trustees must put their arrangements in place within a reasonable period if the scheme is not exempt. See putting arrangements in place for more information on considering designing and building arrangements.

The date members' approval for an opt-out ends

For an opt-out to have been put in place, it had to be approved by the members. The date the opt-out ends is the date that the approval ceases. This will either be:

10 years from the date the approval was treated as being given (where the approval was given before 6 October 2002); or
four years from the date the approval was treated as being given (where approval was given after 6 October 2002).

This will be the commencement date for the MNT and MND requirements if it is before 31 October 2007.

The date the trustees or employer bring the opt-out to an end

For an opt-out to have been put in place, it had to be approved by the members. The date the opt-out ends is the date that the members' approval for an opt-out ceases.

However, the employer or the trustees may bring the opt-out to an end before approval ceases and this may be appropriate in some circumstances. Bringing an opt-out to an end early tells you more.

If the opt-out is ended early, the date the opt-out ends is:

the date the employer notifies the trustees that they wish to bring the opt-out to an end early; or
6 months after the date the trustees notify the employer that they wish to bring the opt-out to an end early.

This will be the commencement date the MNT and MND requirements start to apply if it is before 31 October 2007.

Determining the commencement date for the MNT and MND requirements

Use this flowchart to determine the commencement date for the MNT and MND requirements for your scheme.

You will need to:

establish the date the scheme was established;
establish whether the scheme had an opt-out in place on 5 April 2006;
establish the date the members' approval for any opt-out in place on 5 April 2006 ends;
consider whether you or the employer wish to bring the opt-out to an end early in certain circumstances.

From the commencement date, trustees must put their arrangements in place within a reasonable period, if not exempt. See putting arrangements in place for more information on considering designing and building arrangements.

Flowchart for determining the commencement date for the MNT and MND requirements

Transcript of the flowchart for determining the commencement date for the MNT and MND requirements (PDF, 43.63KB, 1 page)

Bringing the opt-out to an end early

For schemes that had an opt-out in place under the Pensions Act 1995 the date the opt-out ends is the date that the members' approval for an opt-out ceases. If this is before 31 October 2007 this will be the date the MNT MND requirements start to apply to a scheme.

It is possible to bring the opt-out to an end earlier than this and this may be appropriate in some circumstances.

Trustees may bring the opt-out to an end in certain circumstances – see When can trustees bring an opt-out to an end early? Trustees should be aware of the events which may trigger the opt-out to end early.

The employer may bring the opt-out to an end at any time before the approval ceases or 31 October 2007. See When can the employer bring an opt-out to an end early?

Trustees, together with the employer, should consider whether they wish the employer to bring the opt-out to an end early. This may be appropriate for their scheme in certain circumstances.

For example, if the nomination and selection of trustees under the opt-out is due shortly before 31 October 2007, it may be appropriate to bring the opt-out to an end and put new arrangements in place rather than have to run two nomination and selection processes within a short time of each other.

The date the trustees or employer bring the opt-out to an end is the commencement date for the MNT and MND requirements if it is before 31 October 2007.

If you want to know more about the considerations for trustees of these schemes see Opt-out in place.

When can the employer bring an opt-out to an end early?

The employer can bring the opt-out to an end at any time by writing to the trustees advising that it wishes to withdraw the opt-out.

The date the employer writes to the trustees is the date the opt-out ends. This will be the start date for the member-nominated trustees (MNTs) and member-nominated directors (MNDs) requirements if it is before 31 October 2007.

If you want to know more about the considerations for trustees of these schemes see Opt-out in place.

When can the trustees bring an opt-out to an end early?

The trustees can bring the opt-out to an end at any time when certain events occur:

a relevant bulk transfer of a group of members (without consent);
an employer ceases to be the employer for the scheme;
the principal employer is taken over by an employer unconnected to the pension scheme.

If one of these events occurs and the trustees consider that it would not be in the members' interests for the opt-out to continue, they can bring it to an end by writing to the employer.

The date the opt-out ends is six months after the date the trustees write to the employer. This will be the start date for the MNT and MND requirements if it is before 31 October 2007.

If you want to know more about the considerations for trustees of these schemes see Opt-out in place.

What is a reasonable period for putting in place arrangements?

The Pensions Regulator's view on what is a reasonable period for trustees to put arrangements in place is contained in paragraphs 38 to 40 of the code of practice.

The commencement date

The commencement date is the date the requirements for MNTs or MNDs start to apply to a scheme. It is defined in law and varies according to the circumstances of the scheme.

See When do the MNT and MND requirements apply from? for more information on the commencement date for your scheme.

Opt-out

The Pensions Act 1995 first introduced requirements for MNTs and MNDs. Under the requirements in the Pensions Act 1995, the employer could 'opt-out' of the requirements and propose their own arrangements for choosing trustees, provided they obtain the members' approval of the arrangements. This is commonly known as an 'opt-out.

Under the requirements for MNTs and MNDs in the Pensions Act 2004, employers can no longer opt-out and propose their own arrangements.

If you want to know more about the considerations for trustees of these schemes see Opt-out in place.

Arrangements

Arrangements are the scheme's procedures to provide for at least one-third of trustees or at least one-third of the directors of the trustee company to be member-nominated.

See putting arrangements in place for more information for trustees on considering designing and building arrangements

Schemes that had arrangements in place under the Pensions Act 1995

Under the Pensions Act 2004, trustees are required to ensure that arrangements are in place, and implemented, that provide for at least one-third of trustees or at least one-third of directors of the trustee company to be member-nominated.

However, the Pensions Act 1995 first introduced the requirement for member-nominated trustees (MNTs) and member-nominated directors (MNDs).

Under the requirements of the Pensions Act 1995, the employer could 'opt-out' of the requirements and propose their own arrangements for choosing trustees, provided they obtain the members' approval of the arrangements. This is commonly known as an 'opt-out'.

If the employer chose not to put an opt-out in place, the trustees had to make the arrangements for choosing MNTs or MNDs either by following rules set out in law or by adapting these rules (in which case the trustees had to obtain members' approval of the rules).

There are provisions in place to manage the change from one legislative framework to another. These vary depending upon whether an opt-out was in place or whether the scheme had MNTs or MNDs appointed under the Pensions Act 1995.

Trustees will need to review the arrangements they had in place on 5 April 2006 and identify whether an opt-out was in place or not. Trustees of schemes exempt from the Pensions Act 1995 requirements should check that the scheme remains exempt under the new requirements or whether a new exemption applies.

Opt-out in place on 5 April 2006 tells you more about the changes for schemes which had an opt-out in place.

MNTs or MNDs appointed under the Pensions Act 1995 in place on 5 April 2006 tells you more about the changes for schemes which did not opt-out.

More information on the exemptions from the requirements can be found at Do the MNT and MND requirements apply?

Opt-out in place on 5 April 2006

Trustees of schemes which had an opt-out under the Pensions Act 1995 in place on 5 April 2006 have additional considerations when putting arrangements in place for MNTs and MNDs.

The date the requirements start to apply

The date the requirements start to apply (the commencement date) is modified from 6 April 2006 for trustees of schemes with an opt-out in place. When do the MNT and MND requirements apply from? tells you more.

This means trustees have to put arrangements in place within a reasonable period of the commencement date for their scheme.

Considering current arrangements

Trustees may wish to review the arrangements under the opt-out and consider whether any of the current arrangements are still appropriate.

See Considering current arrangements for MNTs or MNDs.

Trustees appointed under the terms of the opt-out

Although the opt-out ends, those appointed as trustees under the opt-out remain as trustees until their term of office expires. This means that the trustees remain in post but they do not count as MNTs or MNDs under the requirements.

Whilst the opt-out remains in place

Until the opt-out ends trustee arrangements are governed by the terms of the opt-out. So if, for example, a trustee resigns, the trustee is replaced under the terms provided for in the opt-out.

See putting arrangements in place for more information on the considerations when considering, designing and building arrangements.

MNTs or MNDs appointed under the Pensions Act 1995

Trustees of schemes which had MNTs or MNDs appointed under the Pensions Act 1995 in place on 5 April 2006 have additional considerations when putting arrangements in place for MNTs and MNDs under the Pensions Act 2004. You should note that MNTs or MNDs do not include member trustees appointed under the terms of an opt-out.

MNTs or MNDs in post

MNTs or MNDs appointed under the Pensions Act 1995 count as MNTs or MNDs under the Pensions Act 2004 requirements until their term of office expires.

This means that the trustees must still put arrangements in place within a reasonable period of 6 April 2006. However, trustees may not need to run any nomination and selection process that they put in place as part of their arrangements.

For more information on whether trustees need to run the nomination and selection process see Determining whether to run the nomination and selection process.

Considering current arrangements

Trustees may wish to review the arrangements under the opt-out and consider whether any of the current arrangements are still appropriate.

See Considering current arrangements for MNTs or MNDs.

See putting arrangements in place for more information on the considerations when considering, designing and building arrangements.

Determining whether to run the nomination and selection process

Any nomination and selection process included in the arrangements trustees put in place must be run within a reasonable period of the need arising.

To determine if there is a vacancy trustees first need to determine how many MNTs or MNDs are required. Paragraphs 23 to 27 of the code of practice provide practical guidance on this.

Having identified the number of MNT or MND posts required, trustees should then review their existing arrangements to see how many MNTs or MNDs appointed under the Pensions Act 1995 are in post. These can count as MNTs or MNDs under the requirements. This will determine whether the scheme has any vacancies to be filled.

If all the vacancies are filled then there is no requirement to run the nomination and selection process put in place until a term of office expires, or an MNT leaves the post.

Example to determine whether to run the nomination and selection process

A scheme with 50 members has 5 individual trustees. Under the Pensions Act 1995 requirements two of these trustees are MNTs.
Under the new requirements trustees must put in place arrangements within a reasonable period of 6 April 2006 that provide for at least one-third of the total number of trustees to be MNTs.
In designing their arrangements the trustees determine that therefore they need to have arrangements that provide for two MNTs.
The trustees put their arrangements in place at their meeting in August 2006. The nomination and selection process must now take place within a reasonable period of any requirement arising under the arrangements.
But the MNTs appointed under the 1995 Act count as MNTs until the expiry of their term of office. This means that the trustees do not need to run the nomination and selection process until the expiry of the term of office of either MNT or if either MNT leaves post.

The nomination process

The arrangements for MNTs or MNDs must include a nomination process which involves at least:

all the active members of the scheme or an organisation that adequately represents them; and
all the pensioner members of the scheme or an organisation that adequately represents them;

For schemes with no active or pensioner members the nomination process must involve such deferred members as the trustees determine.

Paragraphs 49 to 61 of the code of practice provide practical guidance for trustees on the nomination process.

The selection process

The arrangements for MNTs or MNDs must include a selection process which involves some or all of the members where:

there are more nominations than vacancies; or
the trustees decide to have one, even in the event there are fewer nominations than vacancies.

Paragraphs 67 to 76 of the code of practice provide practical guidance for trustees on the selection process.

Putting arrangements in place

Trustees are required to ensure that arrangements are in place, and implemented, to provide for at least one-third of trustees or at least one-third of directors of the trustee company to be member-nominated.

Putting arrangements in place means considering, designing and building arrangements. Trustees will need to do this:

when the requirements first start applying to their scheme (see When do the MNT or MND requirements apply?); or
when reviewing arrangements they have put in place to make sure they remain appropriate to their scheme (paragraphs 83 to 85 of the code of practice refers).

To do this, trustees need to consider two core parts:

The legal requirements and the code of practice.
The rules of the scheme – this is what the rules of the scheme say about the appointment for trustees.

Trustees should also consider whether any of the current arrangements are appropriate and whether they can be used in whole or in part. See Considering current arrangements for MNTs or MNDs.

What are the legal requirements for MNTs and MNDs?

An MNT or MND is a trustee who:

is nominated as a result of a process which must involve at least:
- all the active members of the scheme or an organisation that adequately represents them; and
- all the pensioner members of the scheme or an organisation that adequately represents them; and
is selected by some or all of the members of the scheme.

The arrangements themselves must contain certain basic requirements. Paragraph 47 of the code of practice tells you more.

You can use the decision tree to identify the legal requirements for your scheme.

As well as establishing what the legal requirements are for their scheme, trustees also need to consider the code of practice and the rules of their scheme when putting arrangements in place.

Decision tree: Which requirements and arrangements apply?

Do the rules of the scheme provide for there to be more than one-third member nominated trustees of member nominated directors?
- No - go to 5
- Yes - go to 2
Do the rules of the scheme provide for the trustees to be removed by a vote of membership?
- No - go to 4
- Yes - go to 3
Does the scheme have any active or pensioner members?
- No - see Legal requirements for your scheme (7) in the web page below.
- Yes - see Legal requirements for your scheme (8) in the web page below.
Does the scheme have any active or pensioner members?
- No - see Legal requirements for your scheme (5) in the web page below.
- Yes - see Legal requirements for your scheme (6) in the web page below.
Do the rules of the scheme provide for the trustees to be removed by a vote of the membership?
- No - go to 7
- Yes - go to 6
Does the scheme have any active or pensioner members?
- No - see Legal requirements for your scheme (3) in the web page below.
- Yes - see Legal requirements for your scheme (4) in the web page below.
Does the scheme have any active or pensioner members?
- No - see Legal requirements for your scheme (1) in the web page below.
- Yes - see Legal requirements for your scheme (2) in the web page below.

Considering current arrangements for MNTs or MNDs

The rules of the scheme will contain provisions for the appointment of trustees. As part of putting arrangements in place that provide for at least one third of trustees or at least one third of directors of the trustee company to be member-nominated, trustees need to consider these provisions.

Trustees and employers should note that where any of the rules of the scheme on the appointment of trustees conflict with the legal requirements for MNTs and MNDs, these legal requirements override the rules of the scheme.

For more information on the legal requirements see What are the legal requirements for MNTs and MNDs?

There may be provisions in the rules of the scheme where there is no conflict (since the legal requirements do not cover them) and trustees will need to have regard to these. Examples are:

term of office for trustees
resignation of trustees

Considering current arrangements for MNTs or MNDs

To identify if any of the current arrangements for MNTs and MNDs can be used in the arrangements trustees are putting in place or reviewing, trustees could use the three steps below:

Identify what needs to be in their arrangements being put in place or reviewed (see putting arrangements in place).

Trustees may find it useful to produce a checklist of what their arrangements need to contain.

Identify what is in their current arrangements;
Compare and identify whether any of the current arrangements may be used or retained;

Using the checklist in 1. above compare the current arrangements with what is needed.

By going through these steps, trustees will identify whether any parts of the current arrangements may be incorporated or retained into the arrangements they are putting in place or reviewing. Trustees may also have identified any gaps in their current arrangements which need to be addressed.

Although trustees may have identified gaps or parts of current arrangements that could be included, trustees still need to decide whether to incorporate those parts or put whole new arrangements in place.

For example, trustees may identify that the current arrangements met all the legal requirements but that they do not hold with the principles in the code of practice of proportionality, transparency and fairness.

The legal requirements for your scheme (1)

The requirement

The requirement that applies is to put in place and implement arrangements to provide that at least one-third of the trustees are member-nominated.