The Pensions Regulator has published its new enforcement policy, which contains new powers awarded in the Pension Schemes Act 2021, and replaces and consolidates compliance and enforcement policies governing defined benefit, defined contribution and public sector pension schemes.

Amid a raft of announcements, TPR also published responses to a consultation issued after the PSA 2021, which came into force in order to provide clarity on how the watchdog intends to use its new powers.

“Feedback from stakeholders also highlighted a need to be more transparent with our regulated community about what to expect when they are the subject of our enforcement action,” TPR director of enforcement Erica Carroll wrote in an accompanying blog.

The regulator has also updated its prosecution policy to reflect new criminal powers contained within the PSA 2021.

Feedback highlighted a need to be more transparent with our regulated community about what to expect when they are the subject of our enforcement action

The watchdog has been armed with new powers in successive rounds of legislation since the Pensions Act 2004. TPR was set up in April 2005, replacing the Occupational Pensions Regulatory Authority.

“While our new strategy, and these policies, are not a fundamental change in our approach, they give a clearer understanding of the enforcement journey and factors we will take into account throughout the life of a case,” Carroll wrote.

TPR set out its range of enforcement powers, which are divided into regulatory, penalty, civil and criminal powers. These are largely discretionary, although mandatory penalties do exist, including a maximum £2,000 fine for failing to prepare a chair’s statement.

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