FCA fined for poor pension practices

TPR issues modest fine for governance failing at City watchdog

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The Financial Conduct Authority – better known for handing out fines for poor financial practices – has incurred a £2,000 penalty itself, for failings relating to its own pension scheme.

This fine was imposed by The Pensions Regulator, as a result of the chair’s statement being “non compliant”. The TPR also imposed £2,000 fines on Salvus Master Trust and Accenture Retirement Savings Plan for the same issue. 

Details of these penalties were published in TPR’s website as part of its quarterly update of penalty notices and enforcement action taken. 

The TPR publishes details of all schemes that have failed to complete a return or prepare a compliant chair’s statement. In addition it also names employers who have received an escalating penalty notice for breaches relating to automatic enrolment. 

The chair’s statement covers a range of issues, and is one of the ways in which members can access information on costs and charges. This statement should also cover details regarding default investment arrangements, the processing of core financial transactions, and an assessment of whether the scheme provides value for money for members. These statements have to be fully signed off by trustees of the pension scheme. 

The TPR says this fine was imposed between 1 July and September 30 last year. However it notes that all penalties are listed when they become payable, and may relate to historical breaches.

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