The Pensions Regulator

Reporting breachesComplying with the duty to report breaches of the law

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Code paragraph 37

(on considering other breaches)

The fact that a breach is judged to be green should not be interpreted as meaning that no action is needed to put matters right or to prevent recurrence. In addition, such breaches should be recorded as they may be relevant to the decision whether to report future breaches.

View code paragraph 37.

Code paragraph 41

(on action to correct a breach)

The Pensions Regulator does not expect a reporter to wait until a problem has been fully corrected before reaching a decision on whether to report. The reporter may accept assurances given by the person concerned that corrective action is being taken. However, the reporter should monitor the situation and if the action is not taken, the timetable for taking it slips or the action taken proves to be ineffective, the reporter should consider whether to report to the Pensions Regulator.

View code paragraph 41.

Code paragraph 53

(on reporting procedures)

The procedure illustrated below is suitable for a firm such as an actuarial consultancy, an auditing firm, or a third party administrator employing staff with a variety of pension scheme experience. The Pensions Regulator recognises that small firms may not have sufficient staff to enable them to implement this procedure in full. In particular, they may not have enough appropriately experienced staff to form a standing 'Regulator Committee' to review and discuss amber breach situations.

In following the code, a firm or individual should adopt a procedure reflecting their particular circumstances. Small firms or sole practitioners may consider it appropriate to arrange links with other similar firms for the purpose of talking through, on a no-names basis, amber breach situations. Reporters must bear in mind, however, that these discussions have the aim of clarifying the potential reporter's thought process. The reporter remains responsible for the final decision as to whether a report is needed.

The following is an example procedure for evaluating matters to determine whether a breach has occurred and, if it has, whether it is likely to be of material significance to the Pensions Regulator.

View code paragraph 53.

Code paragraph 60

(on maintaining a dialogue with advisers)

Trustees and managers should remember that their advisers are under a statutory duty to report. Failure to report where appropriate may leave advisers open to both financial and professional sanctions. If an issue arises, trustees and managers should consult their advisers as soon as possible as to the best method to rectify the situation and should be alive to the fact that an adviser is not being disloyal if it is necessary to report a breach; merely acting in accordance with the law and the adviser's professional duties.

View code paragraph 60.

Code paragraph 67

(to follow up on a report)

The Pensions Regulator will usually notify the reporter when action on a particular report has been concluded.

View code paragraph 67.

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