The Pensions Regulator

Code of practice 09
Internal controls

.

.

.

The code of practice

Obligation on trustees

14. Section 249A of the Pensions Act 2004²gives effect to the requirement under Article 14(1) of the European Directive 2003/41/EC³ that schemes should have adequate internal control mechanisms in place. There is therefore a legal requirement in the Pensions Act 2004 that
    trustees of an occupational pension scheme must establish and operate adequate internal controls.
15. The Regulations⁴ state that:
    
    “The trustees or managers of an occupational pension scheme must establish and operate internal controls which are adequate for the
    purpose of securing that the scheme is administered and managed:
    1. in accordance with the scheme rules, and
    2. in accordance with the requirements of the law.”

.

.

.