Pensions Regulator - Duty to Report Breaches of the Law
- Trustees, managers, administrators, participating employers, professional advisers and those otherwise involved in advising trustees are under a duty to report breaches of the law.
- It is essential that companies put in place procedures to comply with the Pension Regulator's Code of Practice on reporting breaches of the law.
- Trustees must bear in mind the need to act within the powers and responsibilities afforded to them in the trust deed and rules.
- When deciding whether to report, two points arise: (a) has there been a breach of law and (b) is it of material significance to the Pensions Regulator?
- It is important to have a reporting system in place and to be aware that one party's report does not automatically remove the duty from another party to report the same breach.
- The Pensions Regulator has the power to impose fines and report advisors to their professional governing bodies if they fail to report materially significant breaches.