On the go: The chair of the Work and Pensions select committee, Labour MP Stephen Timms, has written to the Pensions Regulator questioning its action over the case of Norton Motorcycles and the three pension schemes invested in the company.
Following the recent administration of the motorcycle manufacturer in January, “there has been increased interest in the three pension schemes set up, as part of a pension liberation scam, to provide funding for the company”, Mr Timms said in the letter published on Monday.
Stuart Garner was chief executive and the main shareholder of Norton Motorcycles, and former trustee of the Dominator 2012 Pension Scheme, the Commando 2012 Pension Scheme and the Donington MC Pension Scheme.
Dalriada Trustees was appointed by TPR to the defined contribution schemes in June 2019 after a “clear conflict of interest” was found by the Pensions Ombudsman, since all three funds are invested solely in preference shares of Norton Motorcycle Holdings.
Pensions Expert reported in November that Dalriada was supporting Norton Motorcycles in its fundraising activities, as this represented “the best chance of the schemes recovering their investments in full and is in the best interests of the members”.
With an amount due to members in excess of £14m, “any attempts to extract funds now from the Norton business, or indeed Mr Garner personally, are not going to generate anything close to that figure”, the company stated at the time.
In the letter, Mr Timms questioned when TPR became aware of Mr Garner’s conflict of interest, and if the watchdog could have acted earlier as the pension funds were set up in 2012.
The committee chair also asked the regulator about what scheme members should expect on the return of the funds they invested.
