The Pensions Regulator (TPR) has called on pension schemes, advisers and administrators to engage with it early to prevent problems arising later down the line.

TPR CEO, Nausicaa Delfas, made the call to action in a blog post, which also outlined what the industry can expect from the regulator this year.

Delfas noted that TPR was shifting to a more prudential style of regulation, adding that it will be implementing this ‘vision’ further this year.

“This starts with an open and transparent dialogue with those who run pensions,” she said.

“We will continue to engage with industry in existing and new ways, so that we hear directly what the challenges are and how we, collectively, can overcome them.”

This meant that the regulator ultimately wanted the industry to engage early, with Delfas stating that TPR was not just interested in putting out fires, it also wanted to “stop things catching alight in the first place”.

She warned that if industry professionals ignored this offer of collaboration, then they should not be surprised if TPR stepped in and intervened “in the most appropriate way”, using its powers when needed.

“We want to hear your ideas and suggestions,” Delfas stated. “But we also don’t want there to be any surprises. You should be clear on the outcomes we seek for savers, our expectations and what we want you to do to meet those expectations.”

Over the next 12 months, TPR plans to explain further about the need for better data and how it can support the industry to raise standards, capitalise on new opportunities, and reduce regulatory burden on how the sector can share information with the regulator.

It will also continue to reform the way it supervises the ‘most strategically significant schemes’, beginning with master trusts, to help anticipate and mitigate future risks to savers, improve outcomes, and foster innovation.

TPR’s innovation hub will be launched this year, while it will also outline its future approach to enforcement and tackling serious crimes, and look to continue protecting savers’ outcomes from climate-related risks.

Furthermore, the joint value for money framework will be progressed this year, and the regulator will implement a ‘more strategic approach’ to raising trusteeship standards and look to help defined benefit schemes consider the full range of alternative models of provision through new guidance.

“2025 will be a year of decisive action from TPR, with genuine and open collaboration and a focus on long-term outcomes for savers over tick-box regulation,” Delfas said.

“All this will ensure we meet our goals as a regulator: To protect, enhance and innovate.”

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