Rectification

CDC code in force: 31 July 2026

1. The 2021 Pension Schemes Act¹ defines rectification in relation to marketing or promotional material as the following:
   1. “Rectification, in relation to promotion or marketing that is unclear or misleading, means that a clarification or correction is made in relation to the promotion or marketing as soon as practicable.”
   2. In line with the regulations, any promotion and marketing material must be rectified where they have been identified as unclear or misleading. This must be done as soon as reasonably practicable after the issues with the material have been identified.
2. We will not normally challenge any materials that are unclear or misleading if they are rectified within one calendar month of the issue being identified.
3. We would expect schemes to have robust processes in place to be able to identify whether any promotional or marketing material is unclear and misleading before it is in use.
4. However, there may be some occasions where a promotional or marketing item is identified as being either unclear, misleading or both after it has been approved for use. In these situations, we expect there to be appropriate processes in place to:
   1. assess the risks posed by the item and determine what, if any, remedial action will need to be taken
   2. ensure the item is removed from further circulation with immediate effect
   3. if it has resulted in actual detriment to members, such as a financial loss, identify all the recipients of the item (where it is reasonably practicable to do so) and inform them of the error(s)
   4. provide feedback to the persons responsible for producing and signing of the item
   5. ensure appropriate training is given to the persons responsible for the item if relevant
   6. remedy where financial loss has been identified so that the member is not worse off
5. We do, however recognise that some errors will be more severe than others. Where an item has been used with errors, trustees should:
   1. show evidence that the scheme proprietor has assessed the risks and whether members have suffered detriment as a result
   2. set and document their own risk tolerances when determining the appropriate action to be taken where issues have been identified with the marketing material – this could include taking no action if the rectification needed is so trivial that there is no impact on members
6. Here we set out the evidence we will look for in our assessment which shows how the scheme rectifies unclear or misleading promotional or marketing material as soon as reasonably practicable. This is in respect of communications channels, record-keeping and reporting.

Communications channels

7. We will look for evidence that feedback mechanisms are in place and working. For example, if any complaints are received due to concerns with the promotional or marketing material, we would need to see evidence that this has been fed back to the person(s) responsible (including originator, approvals persons etc) for the material regardless of whether it was upheld or not.

Record-keeping

8. Records of rectifications made must be easily accessible. These should be kept electronically with suitable back up arrangements in place.
9. Records must also contain full details of any remedial actions undertaken and whether the scheme had to add to the scheme assets to ensure members weren’t disadvantaged as a result of unclear or misleading information provided to their employer.

Reporting

10. The scheme proprietor must provide the trustees with regular reports on promotional and marketing activity. These should include details of the following:
    1. type of material (i.e. flyer/leaflet/letter etc)
    2. audience of material and approximate size
    3. number of approvals undertaken during the reporting period
    4. number of rectifications undertaken during the reporting period
    5. details of any risks identified as a result of unclear and/or misleading material
    6. items in use after approval identified during the reporting period (including anywhere the risk has been accepted)
    7. what mitigations (if any) are in place for the risks identified
    8. any remedial actions undertaken and the cost to the scheme where financial loss was identified
    9. number and types of items that have been used after the expiry date of their approval (if relevant)
    10. ongoing assessment of any open risks or mitigations from previous reports
11. We would also expect the scheme proprietor to provide copies of these reports on no less than a quarterly basis to their appointed contact at The Pensions Regulator.

Legal reference

¹ Section 9(7) of the Pension Schemes Act 2021

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