Related provisions for COBS 19.6.1
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(1) In this section, where express agreement is required by a rule, the FCA would expect firms to take active steps to obtain the informed, active consent of the affected member(s) of the qualifying scheme, and to have that consent in writing in a durable medium, capable of being produced or reproduced when requested by the FCA. (2) The FCA does not consider the following to amount to express agreement (this list is not exhaustive):(a) a member receiving a communication stating
A firm, for a default arrangement within a qualifying scheme, may only make, impose or otherwise facilitate payment of an administration charge1 by way of an accrued rights charge or a combination charge structure where:(1) the limits in COBS 19.6.6 R are not exceeded; or(2) the firm has obtained appropriate express agreement to exceed the limits and the following conditions are satisfied:(a) the express agreement contains an acknowledgement by the member that the administration
The limits on administration charges are as follows: (1) for a qualifying scheme which uses only an accrued rights charge, 0.75% of the value of those accrued rights; (2) for a qualifying scheme which uses a combination charge scheme:(a) for the flat-fee charge element, £25 annually;(b) for the contribution percentage charge element, 2.5% of the contributions annually; (c) for the associated accrued rights charge, the limits as set out in column 2 of the table in COBS 19.6.7
(1) To ensure that administration charges1 are within the limits set out in COBS 19.6.6 R:(a) a firm should calculate the value of accrued rights in an accrued rights charge as the arithmetic mean over a 12-month period of membership of the qualifying scheme, using at least four evenly-distributed reference points over that period;(b) a firm should calculate the value of contributions in a contribution percentage charge over a 12-month period of membership of the qualifying scheme
(1) A firm must not make or otherwise facilitate any payment to a third party for advice or services provided pursuant to any agreement made between that third party and an employer for whom the firm is operating a qualifying scheme, including consultancy charges, which would have the effect of reducing the value of the accrued rights of a member of that qualifying scheme to whom this section applies.(2) The restriction in (1) does not apply where the firm has obtained express