AI Summary of 64AM. Outsourcing
This provision outlines the framework for trustees of a scheme or trust RAC to outsource key functions and management activities to service providers. Importantly, even when outsourcing, trustees remain fully accountable for compliance with regulatory obligations and must ensure that such arrangements do not compromise governance quality, increase operational risk, or hinder the Pensions Authority's monitoring capabilities.
Furthermore, trustees are mandated to select service providers judiciously, engage in ongoing monitoring, and enter into legally enforceable written agreements that delineate all rights and obligations. Crucially, timely notification to the Pensions Authority regarding such arrangements is also specified to maintain regulatory transparency.
64AM. Outsourcing
(1) Subject to subsections (2) to (5) and section 64AN, the trustees of a scheme or trust RAC may enter into an arrangement to entrust any activity, including -
(a) a key function, and
(b) the management of that scheme or trust RAC,
whether in whole or in part, to a service provider operating on behalf of the scheme or trust RAC concerned in respect of such activity, key function and management.
(2) Where the trustees referred to in subsection (1) enter into an arrangement referred to in that subsection, in respect of a key function or any other activity referred to in that subsection, the trustees of the scheme or trust RAC concerned shall, notwithstanding that arrangement, be fully responsible for compliance with their obligations under this Act in respect of any such key function or such activity.