The Pensions Regulator

Pensions Regulator welcomes new applications to Trustee Register

Ref: PN05-21
19 July 2005

The Pensions Regulator is inviting new applications from professional trustees to join its trustee register.

The trustee register, which replaces Opra's (Occupational Pensions Regulatory Authority) trustee panel, has invited all trustees from the old panel to apply for acceptance onto the new register. Twenty six professional trustees have now been added to the register, completing the first stage of a thorough selection process.

The new register has been created by statute under the Pensions Act 2004, unlike Opra's trustee panel, which was not set out in statute. There were no defined criteria for entry to or selection from that panel and there was, therefore, a perceived lack of transparency surrounding panel appointments.

However, the Pensions Regulator has established set standards for acceptance onto its new register. The robust selection process assesses applicants based on three clear factors: relevant experience, being fit and proper, and having sound administrative and accounting procedures.

The trustee register has had significant capacity to perform its function since its inception in April. Yet, the Pensions Regulator expects the register to grow even further, thereby increasing the number and choice of trustees available to pension schemes.

Generally, trustees will be chosen from the register for both sections 22 and 7 appointments.

Section 22 appointments, where there is insolvency, must be appointed by the Pensions Regulator from the trustee register. Insolvency practitioners should notify us as soon as they begin to act, which may be before an insolvency event occurs, stating whether a trustee is required.

Section 7 appointments will generally be appointed from the register, however, where section 7 criteria apply, a non-register trustee may be selected.

We can appoint trustees under s. 7(3) for three reasons:

• To secure that trustees have the necessary knowledge and skill for the proper administration of the scheme.
• To secure that the number of trustees is sufficient.
• To secure proper use or application of assets of the scheme.

A trustee register application form is available for download on our website, under Online services. Select Forms available for download and view the Trustee register section. Alternatively, please contact the applications team on 01273-648472.

To find out more about the trustee register and how it will be used, visit www.thepensionsregulator.gov.uk, select Trustees and follow the links to Trustee register.

Editor's notes

1. 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.
2. The Pensions Regulator is now responsible for compiling and maintaining a trustee register, which replaces Opra's trustee panel. It will use the register to appoint trustees to pension schemes it deems to be at risk.
3. When considering applicants for acceptance onto the new register, the regulator will take into account any history of misuse of trust funds, breaches of trust law, persistent or serious over-charging of clients, breaches of pensions legislation and convictions.
4. The new powers of the Pensions Regulator include the ability to:
5. • 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.