The Pensions Regulator

Pensions Regulator talks to IFAs at Scottish Equitable roadshow

Ref: PN05-15
18 May 2005

Speaking today at the Scottish Equitable Pensions Roadshow in London, Sarah Knowles, from the Pensions Regulator reminded financial advisers of their new whistleblowing duties under the Pensions Act 2004.

In her speech, Sarah Knowles outlined the regulatory changes that affect independent financial advisers (IFAs), highlighting the Reporting breaches of the law code of practice which came into force in April 2005.

She said: “The Pensions Act 2004 has extended the duty to report breaches of the law to the regulator to a wide range of reporters including IFAs and anyone involved in advising trustees. IFAs who are involved with occupational and personal pension schemes (including stakeholder pensions) should check that they have effective arrangements in place to identify a problem with a scheme and make a report to the regulator if appropriate.”

However, Knowles reminded delegates that they should only report serious breaches of the law as the regulator will focus its attention on the real risks to members' benefits. She said “we want whistleblowers to use their professional skills and expertise to decide whether the breach would be of material significance to the regulator. We do not want to hear about every minor breach, just those that could indicate a risk to members' benefits – and IFAs are well-placed to spot serious problems with schemes they advise.”

To view the Reporting breaches of the law code of practice, please visit www.thepensionsregulator.gov.uk/
codesOfPractice/reportingBreaches/. There is also additional guidance on the website that contains examples that may be read in conjunction with the code www.thepensionsregulator.gov.uk/guidance/
reportingBreaches/. 

IFAs can find out more about the changes to pensions regulation at a series of launch roadshows for pensions professionals hosted by the Pensions Regulator. Places at these free events are still available in Cardiff, 28 June and Belfast, 30 June. For further details and to book your place online visit [WEBSITE DISCONTINUED]http://www.register4pensionsevents.co.uk/ or contact the event organisers, Oxygen Marketing on 020 7731 2288, email: pensions@oxygenmarketing.co.uk.

Editor's notes

1. The Scottish Equitable Pensions Roadshow takes place at selected locations in May and June and gives an update of the changes going on in pension simplification and from the Pensions Act 2004.
2. Sarah Knowles is presenting at the Scottish Equitable Pensions Roadshow again on:
   • 19 May in Croydon and Maidstone
   • 1 June in Leeds and Newcastle
   • 28 June in the East Midlands

   For further details about these events contact Margaret Robertson in the Scottish Equitable Press Office on 0131 549 6798.

3. The Pensions Regulator is committed to providing the opportunity for face-to-face communication about key regulatory issues.
4. The Reporting breaches of the law code of practice came into force in April 2005. The code gives practical guidance to help statutory reporters decide what should be reported. It reflects the risk-based approach, adopted by the Pensions Regulator. Reporters are encouraged to use their professional judgement about what to report to the regulator so that the Pensions Regulator can focus on matters that pose a serious risk to members’ benefits.
5. Where significant breaches go unreported, the Pensions Regulator has the power to fine individuals up to £5,000 and companies up to £50,000 for failing to carry out their reporting duty .
6. Codes of practice are not statements of the law. However they do have evidential value, meaning they will be taken into account by a court or tribunal where relevant.
7. The Pensions Regulator has been established as the new regulator of work-based pensions in the UK, with wider and more flexible powers under the Pensions Act 2004. It has replaced Opra which no longer exists.
8. The new powers of the Pensions Regulator include the ability to:
9. • collect more detailed scheme information;
   • impose a statutory obligation on ‘whistleblowers’ to report suspected breaches of the legislation to the regulator;
   • issue improvement notices and third party notices, enabling the regulator to ensure problems are put right;
   • freeze a scheme that is at risk, while the regulator investigates; and
   • prohibit trustees who are judged not fit and proper to carry out their duties.