On the go: The Pensions Regulator is conducting an internal review to identify if there are lessons to be learnt after the Norton Motorcycles debacle, a case that left members looking to recoup losses in excess of £14m.
In response to a letter from Labour MP Stephen Timms, chair of the Work and Pensions Committee, TPR chief executive Charles Counsell revealed that the watchdog is conducting an internal review of its “approach and response” and “identify if there are further lessons to be learnt”.
He said: “This will include a thorough review and consideration of how we use data to identify any trends or patterns with respect to conflicts of interest.”
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 March.
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.
In the meantime, the ombudsman’s final report raised questions about the regulator’s effectiveness in this case.
In the letter, Mr Counsell argued that TPR, being a risk-based regulator, does not “have the resources to review every small scheme that is similar to the three Norton pension schemes”.
“To make the best use of public money, we have to target our resources where we see the greatest risk,” he noted, while adding that TPR intends “to do more work in the future looking at governance issues around smaller pension schemes”.
Responding to the letter, Mr Timms said: “TPR’s own research has shown the governance standards of small pension schemes to be consistently lower than their larger counterparts.
“Setting up small schemes has provided opportunities to scammers in the past, and we will be looking at this in more detail in our upcoming inquiry [into pension scams].”
