The Work and Pensions Committee (WPC) has launched an inquiry into the collapse of the Norton pension schemes, with the aim of ensuring members of collapsed pension schemes are better protected and supported in the future.

The inquiry will look at The Pensions Regulator's (TPR) approach to preventing loss of pension assets through fraud or dishonesty and whether there is scope to speed up the process of assessing eligibility for compensation and making payments.

It will also examine the role played by bodies such as independent trustees, The Pensions Ombudsman (TPO), TPR and the Pension Protection Fund (PPF), in its role as administrator of the Fraud Compensation Fund (FCF).

In particular, the WPC has asked whether TPR has the powers needed to prevent trustees acting dishonestly and in breach of their trustee duties, and whether the right regulatory arrangements are in place to prevent a similar case happening again.

WPC chair, Stephen Timms, commented: “The collapse of the Norton pension schemes has caused a huge amount of worry and financial hardship for the members, who fear they have lost their pensions and have been left in limbo when it comes to whether they will receive any compensation at all.

“Our inquiry will look at the lessons that can be learned from this experience to ensure the right regulatory arrangements are in place both to protect pension rights better and ensure compensation is paid promptly when things go wrong.”

Whistleblowers previously raised concerns with TPR in 2013 after assets in the Norton pension schemes were invested in the Norton Motorcycle Holdings Ltd, which subsequently went into administration in 2020.

The sole trustee of the schemes, who was also the sole director of the company, Stuart Garner, subsequently pleaded guilty to three charges of breaching employer-related investment (ERI) rules, and was given an eight-month sentence, suspended for two years, for each of three counts.

TPO also upheld complaints from affected members, with Garner ordered to repay all the money that he invested into his own firm from the company pension schemes.

Dalriada Trustees was appointed by TPR as trustee to the three schemes, with the firm having pursued Garner for this amount, which resulted in his personal bankruptcy.

However, Dalriada Trustees has also faced costs in pursuing these claims and assisting TPR in their prosecution of Garner, with an update in May revealing that the firm has so far incurred costs of £496,800, "and neither Dalriada nor it advisers paid anything to date".

The launch of the inquiry is not the committee's first interaction with the Norton pension schemes case, as Timms previously wrote to TPR following Garner's sentencing, raising concerns over the "frustratingly slow" member compensation process, and, more recently, wrote to the PPF seeking further clarification over the compensation process.

In its response, the PPF confirmed that it is exploring options to ensure the fastest possible route to payment for eligible claims in relation to the Norton pension schemes, having also provided an 'in principle’ decision on the case.

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