[F158BOffence of conduct risking accrued scheme benefitsU.K.
(1)This section applies in relation to an occupational pension scheme other than—
(a)a money purchase scheme, or
(b)a prescribed scheme or a scheme of a prescribed description.
(2)A person commits an offence only if—
(a)the person does an act or engages in a course of conduct that detrimentally affects in a material way the likelihood of accrued scheme benefits being received (whether the benefits are to be received as benefits under the scheme or otherwise),
(b)the person knew or ought to have known that the act or course of conduct would have that effect, and
(c)the person did not have a reasonable excuse for doing the act or engaging in the course of conduct.
(3)A reference in this section to an act or a course of conduct includes a failure to act.
(4)A reference in this section to accrued scheme benefits being received is a reference to benefits the rights to which have accrued by the relevant time being received by, or in respect of, the persons who were members of the scheme before that time.
(5)In this section “the relevant time” means—
(a)in the case of an act, the time of the act,
(b)in the case of a failure to act—
(i)the time when the failure occurred, or
(ii)where the failure continued for a period of time, the end of that period, or
(c)in the case of a course of conduct, the time when the course of conduct ended.
(6)A reference in this section to rights which have accrued is to be read in accordance with section 67A(6) and (7) of the Pensions Act 1995 (reading any reference in those subsections to a subsisting right as a reference to a right which has accrued).
(7)For the purposes of this section the benefits that may be received under the following provisions of this Act are to be disregarded—
(a)Chapter 3 of Part 2 (the Board of the Pension Protection Fund: pension protection), and
(b)section 286 (the financial assistance scheme for members of certain pension schemes).
(8)This section does not apply to a person if the act done, or course of conduct engaged in, by the person is in accordance with the person's functions as an insolvency practitioner in relation to another person (see section 58A(9)).
(9)A person guilty of an offence under subsection (2) is liable—
(a)on summary conviction in England and Wales, to a fine;
(b)on summary conviction in Scotland, to a fine not exceeding the statutory maximum;
(c)on conviction on indictment, to imprisonment for a term not exceeding seven years or a fine, or both.
(10)Proceedings for an offence under subsection (2) may be instituted in England and Wales only—
(a)by the Regulator or the Secretary of State, or
(b)by or with the consent of the Director of Public Prosecutions.]
Textual Amendments
F1Ss. 58A, 58B and cross-heading inserted (1.10.2021) by Pension Schemes Act 2021 (c. 1), ss. 107(2), 131(1); S.I. 2021/950, reg. 2(3)(d) (with reg. 3(1)(4))