When to notify us
You must notify us of this event as soon as reasonably practicable. This should be within five working days of you becoming aware of the failure.
What you need to do
- We anticipate the initial notification should be from the scheme’s strategists.
- Your business plan should outline what the scheme strategist considers to be a significant failure for their master trust in relation to this significant event, including setting out the tolerance levels and trigger points for notifying us. For details, see paragraph 351-352 in the master trust code of practice.
- If the key milestone or target is binary (ie yes or no) you should notify us when the scheme fails to meet the target.
- If the key milestone or target is quantifiable, you must notify us of incidents where you miss the milestone or target significantly. The significance level should already be defined in your business plan when you submit your application for authorisation.
Completing the notification form
- You should provide details of the milestone, target, estimate or assumption in the business plan and the magnitude of the gap in section 3 of the form.
- You should explain the consequences of the failure in section 4, eg a delayed breakeven point or a shortfall in financial reserves.
- You should state whether you intend to revise the milestone or target that you failed to meet in section 7 as part of your actions. If the revision is planned, you should provide details on the next steps in the same section. A revision of the business plan would also lead to notification of a significant event (d), so you should state this event in the same notification.
If there is more than one significant event and they are related, you should use one form to notify us. If the events are not related, you should use separate forms. Check what other significant events to notify us about.