I refer to Nick Edmans' letter (Money Marketing, July 26).I agree completely with Opra that the form SHP100 (which is not prescribed in legislation) is entirely clear and that schemes can have more than one default option.
My concern arises over two issues. First, my information was that some schemes have listed more than one default option but without specifying the categories of member to which each applied. If Opra can confirm that, where there is more than one default option, it is clearly specified which default applies to which category, we will be satisfied.
Second, under regulation 10 of the stakeholder regulations, scheme managers must record in writing the reasons why any investment option (which would include the default option or options) is satis-factory having regard to the scheme's statement of investment principles. If schemes are merely listing a series of funds, or combination of funds, one or more of which might be used as a default option for a particular employer in the future, we are concerned that schemes will not be complying with this regulation.
Again, if Opra can confirm that schemes are not just listing funds that might be used as a default but are only accepting lists which specify which default applies in which sit-uation, there is not an issue.