38.— Section 56 of the Principal Act is amended—

(a) in subsection (2)(c) by inserting “or regulatory own funds trust RAC” after “liabilities of the scheme”,

(b) in subsection (6)(a)(iii) by inserting “other than a small scheme which is a regulatory own funds scheme” after “a small scheme”,

(c) in subsection (6)(b)(i) by substituting “section 41(2)(a) of this Act applies, or” for “section 31(a) of the Social Welfare and Pensions Act 2005 applies, or”,

(d) in subsection (6)(b)(iv) by inserting “other than a small scheme which is a regulatory own funds scheme” after “a small scheme”, and

(e) by substituting the following subsection for subsection (7):

“(7) (a) Subject to paragraph (b) this section shall not apply to a small trust RAC.

(b) This section shall apply to a small trust RAC which is a regulatory own funds trust RAC.”.