The Pensions Regulator has issued a statement setting out how it will (from 25 June) exercise its powers in relation to trustee prohibition. Much of the statement summarises the Regulator's statutory power to ban individuals from being trustees or trustee directors. Interestingly it also lists (non-exhaustively) the criteria it will take into account when considering whether someone is a "fit and proper person".
The Regulator also focuses on charges made by trustees (suggesting that in some circumstances overcharging could lead to prohibition). "Trustees must be authorised...., to charge fees for their services. If they do charge, the regulator would be concerned if the fees charged were not reasonable for the work carried out, or where the work charged for was not done or was not actually necessary. The regulator would also be concerned where there is any attempt to hide the real amount being charged by the trustee, For example, where the trustee uses a service company to do work which is charged to the scheme, but hides the fact that the company is owned by the trustee."
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Trustee prohibition – fit and proper person
criteria Any attempt to deceive. Any breaches of trust or pensions law, particularly if these are significant, persistent, deliberate or contrary to legal advice received. If a trustee's professional charges constitute a breach of trust or demonstrate a lack of internal controls. Unspent criminal convictions not limited to those involving dishonesty or deception and including convictions for money laundering, violence or substance abuse. |
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