(1) The scheme manager may arrange for any of its functions to be discharged on its behalf by another person (a "scheme agent").

(2) Before entering into arrangements the scheme manager must be satisfied that the scheme agent -

(a) is competent to discharge the function, and

(b) has been given sufficient directions to enable the agent to take any decisions required in the course of exercising the function in accordance with policy determined by the scheme manager.

(3) Arrangements may include provision for payments to be made by the scheme manager to the scheme agent (which payments are management expenses of the scheme manager except where the function in question is one under Part 15A).