The Pensions Regulator

Prohibition of trustees

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Criteria for 'fit and proper persons'

If the Pensions Regulator becomes aware of circumstances which could cause us to have concerns as to whether a trustee was a 'fit and proper person' to be a trustee of a pension scheme, we will consider the matter, and decide whether or not to issue a prohibition order.

Standards expected by the regulator

In coming to a decision, the regulator would consider information which raised concerns about the trustee's:

• honesty and integrity;
• competence and capability; and
• financial soundness.

General considerations

When considering these areas, the regulator will take into account matters such as:

• any attempt to deliberately deceive the regulator, or any other regulator;
• any misuse of trust funds;
• any breaches of trust law if these are significant, persistent or deliberate;
• if a trustee were to persistently or seriously overcharge its clients (see the guidance on charging fees for trustee services);
• if trustees persistently or seriously breach pensions legislation or associated regulations;
• convictions (other than those noted under section 29 of the Pensions Act 1995) so far as these are not spent under the Rehabilitation of Offenders Act 1974. These could involve convictions for violence or for drug or substance abuse, for example.

This is not meant to be a comprehensive list, but to provide guidance as to the areas likely to be taken into consideration by the regulator. One of the Pensions Regulator's statutory objectives under the Pensions Act 2004 is to protect the benefits of members of pension schemes, and the regulator will take such actions as are necessary to meet that objective.

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