TPR orders the FCA to pay £2,000 for pension scheme failures
28 January 2020
The Pensions Regulator (TPR) has ordered The Financial Conduct Authority (FCA) to pay a £2,000 fine in relation to a lack of details in its defined contribution scheme documentation.
£2,000 is the highest penalty that the watchdog can issue to pension schemes for failure to comply with its chair statement. The chair’s statement is the paperwork that lays out the actions that defined contribution schemes have taken to comply with various requirements. Some of the key elements it must include are information in relation to the scheme’s default fund and its governance, the costs and charges and the assessment of value for members.
Speaking to Pensions Expert, an FCA spokesperson said:
“In considering the FCA Pension Plan’s application to become an authorised master trust, TPR reviewed its 2018 DC governance statement and ruled it contained insufficient detail.
The FCA Pension Plan trustee has apologised to members of the plan, and reviewed systems and processes to ensure all the required information is available to members and the 2019 governance statement (provided in October) was fully compliant.
The plan’s application to become an authorised master trust has been approved.”
TPE ruled that here was crucial detail missing in relation to regular training that trustee boards should have been provided in order to retain their knowledge of the scheme’s governing documentation. The FCA also failed to provide historical information surrounding fund managers’ costs and charges for default and non-default strategies. There was no date provided as to when the FCA’s most recent review of the investment strategy had taken place.
The TPR has issued fines of a similar nature in the past. Of note, was the £2,000 charge issued to the government-backed workplace pension scheme, National Employment Savings Trust (NEST) for non-compliance with the chair’s statement requirements.
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