The Pensions Act 2021 strengthened The Pensions Regulator’s (“TPR”) powers in relation to corporate activity. In particular, it introduced new criminal offences for individuals (potential jail sentences and / or fines) and new Tests on which a Contribution Notice (“CN”) can be issued.
Historically, TPR has typically been effective in reducing risks to members through positive engagement, with its powers to issue a CN acting as a deterrent, rather than formally using those powers. TPR has issued just 2 CNs in the last 5 years, reflecting practical challenges with enforcement under the legal framework.
This short paper considers the changes in the regulatory framework, their potential impact on corporate activity in the UK and implications for strategy.