Which one of the following types of employer pension schemes 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 main idea here is that pension schemes are generally expected to invest the majority of their assets in investments that are traded on regulated markets, for liquidity, price transparency, and protection of members. This rule applies to schemes with more than one member. A one-member DC scheme is exempt from this requirement, allowing a broader range of investments because of its small size and practical considerations. Therefore, the type that is NOT required to be predominantly invested on regulated markets is the one-member DC scheme. The other options describe multi-member schemes, which typically fall under the rule to invest predominantly in regulated markets.