MTT10250 - Scope: Excluded entities: Definitions of ‘pension fund’ and ‘pension services entity’

The definitions of pension fund and pension services entity are set out in section 235 of Finance (No.2) Act 2023.

Pension fund

An entity is a pension fund if it is established and operated in a territory exclusively, or almost exclusively, to administer or provide retirement and ancillary or incidental benefits to individuals, and:

  • it is regulated as such in that territory, or
  • the benefits provided are secured or otherwise protected by national regulations and funded by a pool of assets that are held via a fiduciary arrangement or trust to secure the fulfilment of corresponding pension obligations against a case of insolvency of the entity, or the group of which it is a member.

A pension services entity is also considered to be a pension fund.

Pension services entity

An entity is a pension services entity if it is established and operated exclusively, or almost exclusively, to:

  • invest funds for the benefit of an entity that is a pension fund (other than a pension services entity), or
  • carry out activities that are ancillary to the regulated activities carried out by a pension fund (other than a pension services entity) that is a member of the same group.