The Pensions Regulator (TPR) has published a report into the regulatory and criminal action taken against former Norton Motorcycles owner and pension trustee, Stuart Garner, who illegally invested scheme money into his business.

It also published a determination notice on its determination panel’s decision to prohibit Garner from acting as a trustee of trust schemes.

TPR prosecuted Garner for three employer-related investment (ERI) breaches after he transferred almost £11m from the Donington MC Pension Scheme, Dominator 2012 Pension Scheme and Commando 2012 Pension Scheme into Norton Motorcycles.

Following a finding of maladministration, The Pensions Ombudsman (TPO) issued a payment order of £15.7m against Garner to be repaid to the schemes, resulting in his personal bankruptcy.

In February 2022, Garner pleaded guilty to the three charges of breaching ERI rules and was sentenced to eight months in prison, to be run concurrently and suspended for two years, for each of the three rule breaches.

Garner left the three pension schemes in his trusteeship with a combined shortfall of £10m, with judge, Nirmal Shant, saying he had been reckless and caused profound harm to his victims.

He was also disqualified from acting as a company director for three years, which preventing him from acting his as a trustee during the period of disqualification.

With the company director ban due to end in 2025, the report explained how TPR has now prohibited Garner from ever acting as a trustee again following a decision by its determination panel.

The panel found Garner was not a ‘fit and proper person’ to be a trustee of trust-based pensions schemes as he “lacked the integrity, competence and capability to hold such a position”.

The prohibition means it would be a criminal offence if he acted as a scheme trustee again.

“Our intervention report details how we and other agencies acted against Stuart Garner, including a successful prosecution for offences relating to serious breaches of pension investment duties,” commented TPR executive director of frontline regulation, Nicola Parish.

“By taking money from schemes in his care to invest in his failing business, contrary to his duties as a trustee, Garner showed a lack of integrity, competence and capability. It is right he has now been banned from ever acting as a trustee again.

“Our focus remains on supporting the independent trustee in pursuing compensation for scheme members through the Fraud Compensation Fund.”

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