The Pensions Regulator (TPR) plans to improve its use of data and act earlier as part of a strengthened approach to enforcement, it announced today (8 September).
The regulator published its new enforcement approach on its website, setting out how it will use “better data, intelligence, and market insight” to inform its actions and “identify emerging risks sooner, engage earlier, and step in before problems escalate”.
In its enforcement strategy document, the regulator explained that it had developed a “more focused, agile and outcomes-driven model that is better aligned with the changing risks in the pensions landscape”.
It pledged to take “decisive action” when it identifies areas of non-compliance, guided by “clear thresholds, a defined risk appetite, and streamlined processes”.
Nausicaa Delfas, chief executive of TPR, said in a blog post: “This is a shift away from ‘tick-box’ regulation, and towards an evidence-led system, focused on helping schemes and employers address issues earlier.
“And where harm has already occurred, our aim will be to ensure those responsible are held to account and to put things right, restoring losses and ensuring savers receive the benefits they are entitled to.”
Delfas also emphasised that TPR was taking a “no surprises” approach to regulation. This meant the regulator would “engage early, be clear about what good looks like and about how we are likely to respond when standards fall short”.
“Stakeholders told us they wanted greater transparency, consistency and clarity through consultation and feedback, and this is central to our refreshed approach,” Delfas said.
“This is a shift away from ‘tick-box’ regulation, and towards an evidence-led system, focused on helping schemes and employers address issues earlier.”
The CEO continued: “Where problems do start to develop, my message to the industry is to get in touch with us early so that we can work together to resolve issues. This way we can avoid escalating to taking compliance action and using our powers.”
TPR will report annually on enforcement activity in the interests of transparency, it said today, to illustrate trends and areas of focus, as well as to hold the regulator to account “for the effectiveness of our approach”, Delfas explained.
“We aim to establish a more resilient, well-regulated system that puts members first as reform continues to reshape the retirement landscape,” she added. “We will be clear in our expectations of those we regulate, using the full range of regulatory tools available to us but industry should be in no doubt that, where necessary, we are prepared to take tough action in pursuit of good member outcomes.”
The regulator’s work will be supported by the continuing development of its data and technology capabilities. TPR said investment in “digital and data tools” would help it identify emerging trends while reducing the regulatory burden.
