Pension Schemes Act 2021

29 Risk notices

(1) The Pensions Regulator may give a risk notice to the trustees of a collective money purchase scheme if the Regulator considers that—

(a) there is an issue of concern in relation to the scheme, and

(b) the scheme will breach the authorisation criteria, or is likely to breach them, if the issue is not resolved.

(2) A risk notice is a notice that requires the trustees of the scheme to submit to the Pensions Regulator a plan (a “resolution plan”) setting out proposals for resolving the issue of concern.

(3) A risk notice must—

(a) identify the issue of concern;

(b) specify the date by which the resolution plan is to be submitted.

(4) If the Pensions Regulator is not satisfied that the proposals in a resolution plan are likely to be adequate to resolve the issue of concern, the Regulator may give a further notice to the trustees requiring them to submit a revised plan by a date specified in the notice.

(5) The trustees must implement the proposals in a resolution plan if the Pensions Regulator—

(a) is satisfied that the proposals are likely to be adequate to resolve the issue of concern, and

(b) notifies the trustees accordingly.

(6) The Pensions Regulator may direct the trustees to comply with the requirement imposed by subsection (5).

(7) Where the trustees are required by subsection (5) to implement the proposals in a resolution plan, the trustees must—

(a) submit to the Pensions Regulator, before the end of a period specified in regulations made by the Secretary of State, a report setting out what progress they are making in implementing the proposals (a “progress report”);

(b) submit further progress reports to the Pensions Regulator at intervals specified by the Pensions Regulator.

(8) Resolution plans and progress reports must be provided in the manner and form specified by the Pensions Regulator.

(9) A reference to a resolution plan in subsections (4) to (8) includes a reference to a resolution plan as revised under subsection (4).

(10) The Secretary of State may by regulations—

(a) specify information that a risk notice must contain;

(b) provide that the date referred to in subsection (3)(b) or (4) must fall before the end of a period specified in the regulations.

(11) Section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee who fails to comply with—

(a) a notice under subsection (1) or (4),

(b) a direction under subsection (6), or

(c) a requirement imposed by subsection (7).

(12) Regulations under this section are subject to negative resolution procedure.