New Criminal, Civil And Investigatory Powers For The Pensions Regulator

Summary

The Pension Schemes Act 2021 significantly augments the enforcement powers of the Pensions Regulator ("TPR"). The Act not only creates new criminal offences but also enables the regulator to make use of civil financial penalties and new powers of investigation. While the behaviour that catches TPR's eye will likely remain unchanged, its power to deter and punish improper conduct will (as of October 2021) increase considerably. Below we take a look at the key changes industry practitioners should note.

Introduction

The Pension Schemes Act 2021 creates three new criminal offences concerning improper conduct in relation to defined benefit pension schemes, and confers new powers of investigation on TPR. The changes, which will carry the force of law from 1 October 2021, have been described by TPR as "a watershed moment in [its] mission to protect savers".¹ According to the Department for Work and Pensions, the offences will catch those who "run pension