TPR has published the draft policy and a consultation on how it plans to use these criminal powers given to it by the Pension Schemes Act 2021.
This Act introduces two new criminal offences: the offence of avoidance of employer debt, and the offence of conduct risking accrued scheme benefits. The offences are not yet in force but are expected to be by Autumn 2021.
David Fairs, TPR’s Executive Director of Regulatory Policy, said: “Our new criminal offence powers are part of a strong package of measures which enhance our existing avoidance powers, supporting our objectives to protect pension savers.
“The intent of the new criminal offences is not to change commercial norms or accepted standards of corporate behaviour. Rather it is to tackle the more serious examples of intentional or reckless conduct that puts members’ savings at risk; and strengthen the deterrent and punishment for that behaviour. Our policy is consistent with this intent.
“It is important our approach is clear and understood, and so I call on industry to take part in the consultation as we finalise our policy.”
This is the first in a series of consultations TPR will be publishing as it takes forward the Government’s plans outlined in the Pension Schemes Act 2021.
The two offences outlined in the draft policy will be committed if someone acts, or fails to act, with the relevant intention and does not have a reasonable explanation for their behaviour. The onus will be on the prosecution to prove that the accused did not have a reasonable excuse.
In the key area of what amounts to a reasonable excuse, the policy sets out factors which we think should be significant in answering that question.
David Fairs continued: “We appreciate the industry’s interest in our intended approach to investigating and prosecuting people under these new offences and the desire for clarity. The policy discusses in detail the points of similarity and differences with our existing anti-avoidance powers and provides examples of the types of behaviour that could fall within the scope of the new offences.”
The consultation is open for six weeks and will close on Thursday, 22 April 2020. TPR will review all consultation responses and make any appropriate changes before publishing the final policy later this year.
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