The Pensions Regulator (TPR) has published an updated enforcement strategy, alongside its consolidated enforcement policy, and updated prosecution policy, in an effort to provide further clarification around enforcement action for pension scheme trustees.

The new enforcement policy includes new powers given to TPR in the Pensions Schemes Act 2021, replacing and consolidating three previous compliance and enforcement policies on defined benefit (DB) funding, defined contribution (DC) and public service (PSPS) schemes.

The policy identifies the outcomes TPR might pursue in line with its goal to improve safety and security for pension savers, and ways it might go about achieving them. It is now web-based and divided into standalone chapters, each linking to other relevant material.

The prosecution policy has also been brought up to date to reflect new criminal powers in the PSA21 and other developments.

The regulator has provided further clarity as part of this, including case examples where possible, although it reiterated that it will adopt a principles-based approach focusing on the risk and harm factors in deciding which enforcement cases to pursue.

TPR has also published a new enforcement strategy, which sets out the overarching aims of its enforcement work, excluding automatic enrolment, and provides insight into the overarching framework TPR applies when selecting cases for enforcement action.

To further assist in providing clarity, TPR has also published updated and more accessible versions of its case team and determinations panel procedures, outlining the steps TPR will follow when considering using its “reserved” powers.

The regulator clarified that although the new strategy and policies are not a fundamental change in its approach, they do give a clearer understanding of the enforcement journey and factors TPR will take into account throughout the life of a case.

The changes to the enforcement policy were announced following an industry consultation, which received positive feedback about the decision to produce one enforcement policy setting out TPR's general approach to investigation and use of its enforcement powers.

However, there were some areas of concern, as respondents suggested that further clarification was needed in a number of areas, including TPR's assessment of the risk and harm factors, its approach to the potential for enforcement action against trustees of transferring schemes in instances of pension scams, and on the instances where there is an overlap in powers.

In a blog, TPR director of enforcement, Erica Carroll, explained that feedback from stakeholders also highlighted a need to be more transparent with the regulated community about what to expect when they are the subject of TPR enforcement action.

"This made us take a step back and think about whether our compliance and enforcement policies, put in place some years ago, were still fit for purpose and whether they reflect how we operate now," Carroll stated.

"We took the opportunity to look at the old with new eyes, and see what we could fix, refresh, or replace in terms of our policies.

"Our work in enforcement is constantly evolving as we take on more cases and test new powers. We continue to be transparent in the outcome of our cases through our publications and will revisit our strategy and policies if these outcomes require any changes in our approach."

Adding to this, TPR executive director of frontline regulation, Nicola Parish, commented: “These new policies and the strategy are key drivers in implementing our long-term corporate strategy. They will focus our work to address issues around pension security and be a framework for us to be a bold and effective regulator.”

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