Appointing professional advisers—negotiating the service agreement
Produced in partnership with Wyn Derbyshire of gunnercooke LLP
Appointing professional advisers—negotiating the service agreement

The following Pensions practice note Produced in partnership with Wyn Derbyshire of gunnercooke LLP provides comprehensive and up to date legal information covering:

  • Appointing professional advisers—negotiating the service agreement
  • Types of professional advisers
  • Appointing professional advisers - process
  • Service agreement
  • Issues to consider when negotiating a service agreement
  • Terms of appointment issues
  • Performance benchmark issues
  • Delegation issues
  • Liability and indemnification issues
  • Termination issues
  • More...

THIS PRACTICE NOTE APPLIES TO REGISTERED OCCUPATIONAL PENSION SCHEMES

In view of the complexity of modern-day pensions law and administration, it is unsurprising that trustees of occupational pension schemes generally appoint professional advisers to assist them when carrying out their duties. Furthermore, the trustees of most registered schemes are legally obliged to appoint certain professional advisers, although some schemes are exempt from such obligations, depending on the nature of the relevant pension scheme.

For more information, see Appointing professional advisers and other pension scheme advisers.

Types of professional advisers

Professional advisers often found acting in relation to (defined benefit) occupational pension schemes include:

  1. scheme auditor

  2. scheme actuary

  3. fund manager

  4. custodian of assets

  5. legal adviser

Strictly speaking, there is no statutory requirement that trustees of registered pension schemes appoint legal advisers; however, if any person is appointed (other than by the trustees) as a legal adviser in relation to the scheme, and the trustees place reliance in the skill or judgement of that person, the trustees can be penalised under the provisions of the Pensions Act 1995, s 10. A similar point arises in respect of fund managers.

Appointing professional advisers - process

It is a statutory requirement that professional advisers to the scheme must be appointed in writing. The exact nature of the appointment letter will depend upon the type of adviser appointed, and the letter must

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