Part 1: Master Trusts Chapter 7: Supplementary Section 36: Fraud compensation
Section 36 provides a regulation-making power enabling the Secretary of State to modify sections 182 to 187 of the Pensions Act 2004, which relate to the Fraud Compensation Fund. These regulations will make amendments to modify how fraud compensation provision under the 2004 Act applies to Master Trusts and other pension schemes to which all or some of the provisions of Part 1 (by virtue of section 40) of the Act apply.
	Sections 182 to 187 of the Pensions Act 2004 enable fraud compensation payments to be made to occupational pension schemes where certain conditions are met. These conditions include that:
	the value of the scheme’s assets has been reduced and there are reasonable grounds for believing this was due to dishonesty; and
	the employer has gone out of business or is unlikely to continue as a going concern.
	We will use regulations to make adjustments to the provision for fraud compensation to make it more suitable for Master Trusts.
	Section 36 also allows these modifications to apply to other types of occupational pension schemes should they become covered by the Master Trust authorisation scheme by virtue of section 40 of this Act.
	Subsection (2) provides that any regulations made under this section are subject to the negative resolution procedure.