We are being given new powers to issue compliance notices and penalties to trustees and managers if they fail to comply with pensions dashboards requirements. These include connecting and maintaining their connection with dashboards, and complying with technical, data and other standards that the Money and Pensions Service sets.
We may also issue compliance notices and penalties to third parties where they have caused non-compliance. This may include administrators, integrated service providers and employers.
Under the proposed regulations we would have the option to issue penalties of up to £5,000 to individuals and up to £50,000 in other cases for any instance of a single compliance breach.
We will have discretion over if and how we use these powers. We recognise that delivering pensions dashboards is a huge challenge for industry. We will work with industry as issues arise, and use our powers fairly and proportionately, looking at the particular circumstances of each case. As a regulator, we will be pragmatic but there are legal obligations to comply with and if we see intentional or reckless non-compliance, we will take action.
These new powers will sit alongside our existing powers, which we will continue to use. Our existing powers include being able to:
- request information
- require a skilled persons report
- suspend, prohibit or appoint a trustee where warranted
We will consult on our proposed dashboards compliance and enforcement policy in the autumn. In the meantime, you can read more about our approach to regulating.