administration charge

(1) (except for the purposes of COBS 19.5 and COBS 19.8), any charge made which:167

1. (a) relates to the money purchase benefits accruing to a member of a qualifying scheme whose workplace pension contributions are invested by way of a default arrangement; and
2. (b) is levied on:
   1. (i) any of that member's workplace pension contributions; or
   2. (ii) any income or capital gain arising from the investment of such workplace pension contributions; or
   3. (iii) the value of the member's rights, insofar as those rights involve money purchase benefits, under the scheme; and
3. (c) is levied to meet the administrative expenses of the scheme, to pay commission or to be deployed in any other way that does not result in the provision of pension benefits for or in respect of such a member;

but an administration charge does not include any charge made for costs:

1. (d) incurred directly as a result of buying, selling, lending or borrowing investments;
2. (e) incurred solely in providing benefits in respect of the death of such a member of a qualifying scheme;
3. (f) in complying with a court order, where that order has provided that the operator may recover those costs;
4. (g) arising from earmarking orders or pension sharing arrangements pursuant to regulations made under section 24 or 41 of the Welfare Reform and Pensions Act 1999.

1. (2) (for the purposes of COBS 19.5 and COBS 19.8 only), in relation to a member of a pension scheme or (for the purposes of COBS 19.5 only) a pathway investor, means any of the following to the extent that they may be used to meet the administrative expenses of the scheme or (for the purposes of COBS 19.5 only) the pathway investment, to pay commission or in any other way that does not result in the provision of pension benefits for or in respect of members or (for the purposes of COBS 19.5 only) pathway investors:but an administration charge does not include any charge made for costs:
   1. (a) any payments made to the scheme or (for the purposes of COBS 19.5 only) for a pathway investment by, or on behalf or in respect of, the member or (for the purposes of COBS 19.5 only) pathway investor; or
   2. (b) any income or capital gain arising from the investment of such payments; or
   3. (c) the value of the member’s rights under the scheme or (for the purposes of COBS 19.5 only) the pathway investor’s rights under the pathway investment;
   4. (d) incurred directly as a result of buying, selling, lending or borrowing investments; or
   5. (e) incurred solely in providing benefits in respect of the death of such a member or (for the purposes of COBS 19.5 only) pathway investor; or
   6. (f) incurred in complying with a court order, where that order has provided that the operator, trustee or manager of the scheme or (for the purposes of COBS 19.5 only) pathway investment may recover those costs; or
   7. (g) arising from earmarking orders or pension sharing arrangements pursuant to regulations made under section 24 or section 41 of the Welfare Reform and Pensions Act 1999.
   but an administration charge does not include any charge made for costs: