Regulator asks industry to gain some perspective on its criminal offences powers
David Fairs, Executive Director of Regulatory Policy, Analysis and Advice at the Pensions Regulator, has issued a blog outlining the Regulator’s intentions for the use of its new criminal offence powers set out in the Pension Schemes Act 2021 in relation to avoiding pension debt and putting scheme benefits at risk. This is linked to the Regulator’s consultation on its draft criminal offences policy issued last month (see Pensions Bulletin 2021/12) and which closes today.
Concerns have been raised that the powers given to the Regulator are too far-reaching, so they could “potentially catch” normal behaviour. There has been speculation that competent trustees will resign in fear of inadvertently committing a criminal offence.
Mr Fairs seeks to alleviate these fears, confirming that the Regulator will not be targeting acts pre-dating the offences coming into force and will not overstretch the intent and purpose behind the powers. He is keen to work with the pensions industry to ensure the Regulator is taking a balanced, proportionate and risk-based approach that deters wrongdoers, and encourages those interested to engage with the consultation.
Comment
There remains significant unease with the scope of the new powers and unfortunately the draft guidance, whilst containing very similar messages to this blog, does not go far enough in its present form in seeking to allay concerns that many have when it comes down to specifics. The Regulator will be able to shortly reflect on the consultation responses it receives and hopefully deliver the reassurance that is needed through reworked guidance which is much more explicit on which behaviours are in scope, which most definitely are not and which are borderline.
