On the go: An insurance agent was banned from running a business for seven years for pension scheme negligence on Sunday, after the Insolvency Service said he put more than £13m in member savings at risk.
Ivor Jenkins pocketed over £100,000 – on top of his directorial pay – for pension scheme administration, despite not being an approved administrator.
On Sunday, Secretary of State for Business, Energy and Industrial Strategy Greg Clark accepted Mr Jenkins’ disqualification undertaking, which bans him from directly or indirectly becoming involved, without the permission of the court, in the promotion, formation or management of a company.
“Mr Jenkins gained personally from allowing his company to administer the pension scheme, while members were left in the dark about their savings, and for that we welcome this disqualification, which seriously curtails his ability to run a limited company,” said Ken Beasley, official receiver at the Insolvency Service.
Having worked in the highly regulated insurance industry, he should have known that there are stringent guidelines when it comes to administering a pension scheme
Ken Beasley, Insolvency Service
Mr Jenkins’ struggling company, Optimum Financial Solutions, began administering the Optimum Retirement Benefits Plan on June 30 2015 to bring in a new source of revenue.
Insolvency Service investigations in 2016 found that ORBP neglected its duties on record-keeping, tax compliance and member information such as personal statements.
Mr Jenkins claimed he was not personally involved in the promotion of the pension scheme, and was in the process of selling his business. But a Pensions Regulator report raised serious concerns over ORBP’s savings of more than £13m.
An independent trustee was appointed to ORBP in February 2018, but proved unable to identify scheme assets or reconcile members’ accounts due to inadequate record-keeping. Later that month, on February 20, Optimum was wound up in court.
Mr Beasley said Mr Jenkins should have known better. “Having worked in the highly regulated insurance industry, he should have known that there are stringent guidelines when it comes to administering a pension scheme,” he said.
Mr Jenkins admitted he "made a serious mistake" not realising that he was responsible for the pension scheme's management, but claimed he had accepted an offer for Optimum and was only in place as a director during a 12-month handover period.
"I feel totally let down by the Insolvency Service," Mr Jenkins said, adding that he would be appealing the penalty.
The Insolvency Service noted, however, that Mr Jenkins signed his own disqualification undertaking, admitting to the negligence.
