Automatic Enrolment Retirement Savings System Act 2024
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Redemption of units for early payment | ||
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86. (1) On or as soon as is practicable after the date on which an application by a participant under section 85 is allowed under subsection (2) of that section, on review under section 114 or on appeal under section 116 , the Authority shall— | ||
(a) ascertain the number of units in any AE provider scheme that the Authority holds on behalf of the participant, | ||
(b) instruct the investment management provider providing the scheme to redeem that number of units and pay the proceeds to the Authority within a time specified by the Authority, | ||
(c) credit to the participant’s account after deducting any fees payable in accordance with regulations made under section 35 — | ||
(i) the redemption value of the units at the date the application is allowed, or | ||
(ii) where subsection (2) applies, the amount referred to in that subsection, | ||
and | ||
(d) send to the participant a notification that the balance in the participant’s account is eligible for withdrawal in accordance with this Part. | ||
(2) Where an application by a participant under section 85 is refused by the Authority but allowed on review under section 114 or on appeal under section 116 , the amount to be credited under subsection (1)(c), subject to any fees payable in accordance with regulations made under section 35 , is— | ||
(a) in the case of units in any AE provider scheme that the Authority held on behalf of the participant at the date of the refusal, the greater of— | ||
(i) the redemption value of the units at the date the application is allowed, and | ||
(ii) the redemption value of the units at the date of the refusal, | ||
and | ||
(b) in the case of units acquired after the date of the refusal and held by the Authority on behalf of the participant, the greater of— | ||
(i) the redemption value of the units at the date the application is allowed, and | ||
(ii) the acquisition price of the units. | ||
(3) In this section, “acquisition price” means, in relation to a unit, the amount transferred to an investment management provider to invest in that unit under section 72 (1). |