The Principal Act is amended by the insertion of the following Part after Part II:

"Part IIA Prudential supervision

Chapter 1 General

26C. Interpretation for Part

(1) In this Part -

'outsourced' has, notwithstanding section 2(1), the same meaning as it has in the Directive of 2016;

'prudential supervision' shall be construed in accordance with the Directive of 2016.

(2) Without prejudice to section 2(7), a word or expression that is used in this Part and is also used in the Directive of 2016 shall, unless the context otherwise requires, have the same meaning in this Part as it has in the Directive.

26D. Conflict between Part and schemes or trust RAC

(1) The provisions of this Part shall override any rule of a scheme or trust RAC to the extent that that rule conflicts with those provisions.

(2) Any question as to whether any provision of this Part conflicts with any rule of a scheme or trust RAC, shall be determined by the Pensions Authority on application to it in writing in that behalf by a person referred to in subsection (3).

(3) The following persons shall be entitled to make an application under this section in respect of a scheme or trust RAC -