PART 1

Collective money purchase benefits

Ongoing supervision

Risk notices
29
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.