(1) Notwithstanding anything in the rules of the scheme or trust RAC and subject to regulations under subsection (2), trustees of a scheme or trust RAC may neither borrow money nor act as a guarantor on behalf of a third party.
(2) Subject to the Directive, regulations may provide that in the circumstances and subject to the conditions and restrictions that may be prescribed, trustees of a scheme or trust RAC may borrow money.
(3) This section shall not apply in respect of borrowing arrangements entered into by the trustees of a one-member arrangement before the coming into operation of the European Union (Occupational Pension Schemes) Regulations 2021.