Key Takeaways
- • The Pensions Regulator (TPR) took over from the Competition and Markets Authority (CMA) on 1 October 2022 as the body monitoring trustee compliance with fiduciary management tender and investment consultant strategic objectives requirements.
- • The CMA is no longer collecting annual compliance statements, which previously were due by 7 January each year, and no such report was required in the current cycle.
- • Under the Occupational Pension Schemes (Governance and Registration) (Amendment) Regulations 2022, compliance monitoring information is now "registrable information" under section 60 of the Pensions Act 2004, and failure to take reasonable steps to provide it may result in a civil fine.
- • Trustees will not have to provide compliance monitoring information in the 2023 scheme return cycle, with TPR expected to announce collection plans later.
- • Pending further guidance, trustees should document and retain the tender process, key decisions and rationale, and continue to hold data previously submitted to the CMA.
Summary
On 1 October 2022, The Pensions Regulator (TPR) assumed responsibility from the Competition and Markets Authority (CMA) for monitoring trustee compliance with two legal requirements: running a competitive tender process when appointing fiduciary managers for 20% or more of scheme assets, and setting strategic objectives for investment consultancy providers, according to a Burges Salmon thought leadership piece.
Trustees previously submitted annual compliance statements to the CMA by 7 January each year. The CMA is no longer collecting this information, and no such report was required in the current month.
The Occupational Pension Schemes (Governance and Registration) (Amendment) Regulations 2022 transferred monitoring responsibility to TPR and amended the Register of Occupational and Personal Pension Schemes Regulations 2005 to classify compliance monitoring information as "registrable information" under section 60 of the Pensions Act 2004. Failure to take all reasonable steps to provide TPR with registrable information may result in a civil fine. Trustees remain under an ongoing duty to notify TPR of changes in registrable information.
According to Pensions Expert, trustees will not be required to provide this compliance monitoring information in the 2023 scheme return cycle, and TPR has said details of its collection plans will be shared in due course. TPR's guidance on tendering for fiduciary management services and on setting investment consultant objectives states that, as good practice, trustees should document their compliance, including a record of the tender process, key decisions and reasons. Pensions Expert reports that TPR plans to publish further guidance on how compliance will be reported. Burges Salmon advises that trustees continue to document and retain information previously provided to the CMA and be ready to supply it to TPR once collection is announced.
Trustees previously submitted annual compliance statements to the CMA by 7 January each year. The CMA is no longer collecting this information, and no such report was required in the current month.
The Occupational Pension Schemes (Governance and Registration) (Amendment) Regulations 2022 transferred monitoring responsibility to TPR and amended the Register of Occupational and Personal Pension Schemes Regulations 2005 to classify compliance monitoring information as "registrable information" under section 60 of the Pensions Act 2004. Failure to take all reasonable steps to provide TPR with registrable information may result in a civil fine. Trustees remain under an ongoing duty to notify TPR of changes in registrable information.
According to Pensions Expert, trustees will not be required to provide this compliance monitoring information in the 2023 scheme return cycle, and TPR has said details of its collection plans will be shared in due course. TPR's guidance on tendering for fiduciary management services and on setting investment consultant objectives states that, as good practice, trustees should document their compliance, including a record of the tender process, key decisions and reasons. Pensions Expert reports that TPR plans to publish further guidance on how compliance will be reported. Burges Salmon advises that trustees continue to document and retain information previously provided to the CMA and be ready to supply it to TPR once collection is announced.
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