Part 1: Master Trusts Chapter 3: Authorisation criteria Section 7: Fit and proper persons requirement
Section 7 sets out a requirement that the Pensions Regulator must decide if key individuals in the scheme are fit and proper to act in their roles. These roles are: the person who establishes the scheme; trustee of the scheme, individuals who have the power to appoint and remove trustees and individuals who have the power to amend the scheme; scheme funder and the scheme strategist. Additional roles subject to a fit and proper test may be added by regulations under subsection (2) (h).
	In addition, subsection (3) enables the Pensions Regulator to determine the fitness and propriety of further individuals in capacities mentioned in that subsection. The Pensions Regulator may assess individuals who promote or market a Master Trust and other roles that may be set out in regulations made under (3)(b).
	Under subsection (4) (a) in assessing whether the person meets the criteria, the Pensions Regulator must take into account any matters specified in regulations, and under subsection (4) (b) may take into account other matters, including matters relating to a person who is connected with that person. Persons are considered to be connected in line with definitions set out in sections 251 and 453 of the Insolvency Act 1986. Subsection (5) sets out the circumstances in which persons can be considered to be connected with each other, for example, individuals who are directors, or shadow directors, of the same company or where a trustee is able to exercise a power under the trust to benefit a specific individual.
	Subsection (7) provides that any first regulations made under subsection (4) are subject to the affirmative resolution procedure.
	Subsection (8) provides that any subsequent regulations made under subsection (4) and any regulations made under subsections (2) and (3) are subject to the negative resolution procedure.