TPR fines FCA for pension failures

This is the higher penalty the pensions watchdog can give to a pension scheme for failures to comply with its chair statement.

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.”

Pensions Expert understands that TPR found the FCA should have provided additional specific detail on the regular training members of the trustee board receive to maintain their knowledge in relation to the scheme’s governing documentation.

The financial regulator should have also provided more historical detail on fund managers’ costs and charges for both default and non-default strategies, even though this had previously been put on the members’ website; and stated the specific date on which the most recent review of the investment strategy had taken place.

In November, the regulator finalised the authorisation process, with a final tally of 37 master trusts approved.

The chair’s statement is the document in which the DC scheme trustees explain the actions they have taken to comply with certain obligations. 

It must include information on the scheme’s default fund and its governance, the costs and charges applied, and the assessment of value for members, among other topics.