Automatic Enrolment Retirement Savings System Act 2024 section 73

Transfer between AE provider schemes

Section 73 provides for the transfer of a participant's investments between fund types when their risk level changes, and requires investment management contracts to include provisions for transferring investments when a provider ceases to act.

• When a participant's appropriate risk level changes, their existing investments must be transferred from the old risk-level fund to a fund within the new risk level, in accordance with regulations.
• Investment management contracts must include provisions dealing with the transfer of investments when a provider is appointed or ceases to act as an investment management provider.
• Any amount transferred must always be placed into a fund that matches the participant's appropriate risk level at the time of transfer.
• Where a provider ceases to act and two or more other providers remain, the transferred amount must be divided equally among the funds provided by those remaining providers.