Income Tax (Earnings and Pensions) Act 2003 section 72

Duty to act in accordance with participant's directions

Section 72 requires that SIP trustees must only dispose of plan shares or deal with associated rights when directed to do so by the participant, subject to certain overriding obligations.

• The trust instrument must require trustees to dispose of a participant's plan shares only in accordance with the participant's directions.
• Any rights arising from plan shares — such as rights to be allotted other shares, securities or rights of any description — must also be dealt with only as the participant directs.
• These participant direction requirements are subject to the duty not to dispose of plan shares during the holding period (paragraph 73) and any plan provisions allowing trustees to sell shares to meet PAYE obligations (paragraph 79).
• The plan may allow participants to give standing general directions, provided the effect and terms of those directions are specified in the plan itself.