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COB 12.3.6A Guidance

1. An Operator may accept voluntary contributions under COB Rule 12.3.6A to a DIFC Scheme or Non-DIFC Scheme only if the Constitution of the Scheme permits it and, subject to the requirements applicable to voluntary contributions.
2. A Member will only be able to make voluntary contributions as long as the contributions are made by the employer who is also making mandatory contributions. If the Member decides to retain the accrued benefit beyond the termination of employment with that employer, no further contributions to the Scheme can be made by the Member.
3. The Authorised Firm is required to have adequate systems and controls in place to be able to clearly distinguish between mandatory contributions and voluntary contributions in respect of a Member, including the assets in which those contributions are invested.
4. The defininition of extreme financial hardship in the Constitution of the Scheme (see COB Rule 12.3.6A(c)(i)) should be consistent with industry practice and may include, for example, circumstances such as the ill health of a Member or immediate family, death of a family member or other justifiable grounds.
5. See Guidance items 2, 3 and 4 under COB Rule 12.2.1 relating to AML screening if a Member makes voluntary contributions.

 

Derived from DFSA RMI302/2021 (Made 30th June 2021). [VER38/09-21]