Which of the following is NOT required to be predominantly invested on regulated markets?

• A. A one-member DC scheme
• B. A DC scheme with more than 50 active members
• C. All schemes, other than one-member schemes
• D. A DC scheme for 100 or more members

Answer: (A)

The rule about investing predominantly in regulated markets is about protecting savers in multi-member arrangements. When a DC scheme serves many members, regulators want the assets to be placed mainly in regulated, well‑supervised markets to ensure transparency, liquidity, and appropriate governance for the collective fund.

A one-member DC scheme operates essentially like a personal investment wrapper for that single member. Because there is only one participant, there isn’t the same issue of protecting a broad group of future beneficiaries or balancing diverse member interests. The regulator therefore allows that single-member setups do not have the same requirement to keep the bulk of assets in regulated markets.

So, the exception is the one-member DC scheme: it is not required to be predominantly invested on regulated markets. All other schemes with more than one member fall under the rule and must predominantly invest in regulated markets.