You’re probably aware that the Occupational Pensions Schemes (Investment) Regulations, which came into force on 30 December 2005, removed the exemption of wholly insured schemes with 100 or more lives not having to prepare and maintain a SIP. These schemes are now required to have a written SIP.
It’s the trustees’ responsibility to get written investment advice from a suitably qualified person and also to contact the employer the scheme is related to, letting them know that you’re going to be creating a SIP.
Once the SIP has been established, it must be reviewed every three years, or more often if there’s been any relevant change in the scheme’s investment policy.
To help you, we’ve prepared a template and a draft SIP that you can use to create a SIP for the scheme you’re a trustee of.
Creating a SIP isn’t only a sensible approach but may also help you and your fellow trustees avoid a hefty fine or penalty in the future.
Draft Statement of Investment Principles
Statement of Investment Principles Template Defined Contribution Schemes
