FCA fined over pension scheme failures

This is the maximum fine The Pensions Regulator can issue for poor statements.

Firms must submit an annual chair's statement which sets out how the scheme meets certain standards and obligations including information on the scheme’s default fund and its governance, the costs and charges applied, and the assessment of value for members.

The fine was issued during Q3 2019, however The Pensions Regulator noted that although penalties are listed when they become payable, they may relate to an historical breach.

An FCA spokesperson said: “In considering the FCA Pension Plan’s application to become an authorised master trust, TPR reviewed its 2018 DC governance statement and ruled it contained insufficient detail.

“The FCA Pension Plan trustee has apologised to members of the plan, and reviewed systems and processes to ensure all the required information is available to members and the 2019 governance statement (provided in October) was fully compliant.

"The plan’s application to become an authorised master trust has been approved.”

Last year, Nicola Parish, executive director for frontline regulation at The Pensions Regulator, said: “Annual chair's statements are an essential way to show pension savers that their scheme is being properly governed and will deliver the retirement benefits they are promised. That’s why it is the law for trustees to produce chair's statements and make sure they contain all of the necessary information."