The Pensions Regulator (TPR) has launched a new outcomes-focused enforcement approach, shifting away from compliance-led oversight towards earlier intervention, greater use of data and a 'no-surprises' model designed to prevent harm before it occurs.

It marks a further step in delivering the regulator’s new Corporate Strategy and will see TPR focus its resources on the risks and harms that have the greatest impact on pension savers.

Under the new framework, TPR will assess potential enforcement cases according to three key factors: impact, scale, and complexity, rather than following a rigid formula.

High-impact or high-scale cases will generally be prioritised even where they are relatively straightforward, while highly complex cases will be pursued where they align with TPR’s strategic objectives and offer a clear opportunity to deliver meaningful results.

In contrast, cases with both low impact and low scale will be less likely to result in formal enforcement unless they form part of a wider pattern or carry a risk of escalation, although TPR may still respond through targeted communications, guidance or compliance-led action.

The regulator argued that greater use of data, intelligence and market insight would allow it to identify emerging risks earlier and intervene before problems escalate, while enabling resources to be targeted more precisely.

TPR chief executive, Nausicaa Delfas, described the change as a move away from “tick-box” regulation towards an evidence-led system focused on the outcomes that matter most to members.

“We have shifted from a compliance-based approach to focus our efforts on how we can make the biggest difference for members, acting to prevent harm before it happens and putting the outcomes first that we want to achieve,” she continued.

“Compliance with legislation, of course, is still important. But we are increasingly taking a longer-term, system-wide view.

"Our focus is on achieving what ultimately matters for savers: a sustainable income in retirement.”

The regulator’s enforcement strategy is structured around five objectives: targeting the risks and harms with the greatest impact on members; taking assertive, agile, and collaborative action; responding decisively to non-compliance and economic crime; improving transparency; and making greater use of data to deliver better outcomes.

TPR stated that its enforcement activity would particularly focus on members who were vulnerable or at greater risk, including lower-income workers and those most likely to experience financial hardship in retirement.

Where serious harm or an immediate risk to members or scheme assets is identified, the regulator said it would act quickly, while suspected serious economic crime would be escalated in collaboration with law enforcement partners where appropriate.

The approach covers both regulatory and criminal enforcement, with serious economic crime potentially including fraud, money laundering and other financial crime involving high levels of complexity or harm, organised crime, international elements or emerging threats.

However, TPR stressed that enforcement remained one tool within a broader regulatory framework, alongside communications, guidance and supervisory engagement.

Delfas said that the regulator wanted enforcement action to come as “no surprise” to those involved, with TPR committing to engage earlier and provide greater clarity on what good practice looks like and how it is likely to respond when standards fall short.

“Where problems do start to develop, my message to the industry is to get in touch with us early so that we can work together to resolve issues," she continued.

“This way, we can avoid escalating to taking compliance action and using our powers.”

TPR noted that most schemes and employers would never face enforcement action, but urged trustees, advisers and employers to familiarise themselves with the new framework.

Where early engagement or cooperation does not resolve an issue, or where there is repeated non-compliance or serious harm, the regulator warned that it could escalate to measures including directions, conditions, financial penalties, the appointment or prohibition of trustees, and prosecutions.

The regulator also set out four outcomes it will seek to achieve through enforcement: prevention, reparation, accountability and member confidence.

Where harm has already occurred, this could include correcting breaches, restoring losses or detriment and ensuring members receive the benefits to which they are entitled.

Where appropriate, TPR will also seek to hold individuals responsible for misconduct to account, including removing and replacing trustees who fail to meet required standards.

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