Now: Pensions has been fined £100,000 by The Pensions Regulator for failing to promptly report system failures, which meant that over 80,000 required communications weren’t sent to savers, impacting their ability to make informed auto-enrolment choices.
Two companies in the Now: Pensions group, Now: Pensions Ltd and Now: Pension Trustee Ltd, were each handed a £50,000 fine for not properly reporting significant events and breaches of the law in line with their duties as a master trust provider.
The breaches relate to historic system failures that led to more than 80,000 communications not being sent to members and potential members. These communications, mandated by auto-enrolment legislation, are designed to inform individuals of their rights and enable them to make informed decisions about their pensions. Some suffered financial and non-financial detriment as a result of missing out on this information.
The significant event regime requires providers to report major service issues to TPR promptly, typically within one working day. In this case, the communication failures were not reported promptly. But both companies did report two of the same communication failures as breaches of law; however, they failed to do so as soon as reasonably practicable.
TPR published a regulatory intervention report today setting out the findings and the rationale for its enforcement action. The report also outlines how the regulator is evolving its approach to master trust supervision, using a more proactive, risk-based model to identify issues earlier and protect savers more effectively.
Master trusts now account for 91 per cent of memberships in non-micro DC and hybrid schemes, covering around 28 million savers and £166 billion in assets. TPR says its updated approach is designed to reflect the growing importance of these schemes within the pensions landscape.
Gaucho Rasmussen, Executive Director of Regulatory Compliance at TPR, said: “The master trust authorisation regime created a safer more robust and sustainable market for the millions who save into these schemes. And, as this case proves, when things go wrong, we will take tough action to protect savers.
“Now has since satisfied us it has made changes to enhance its processes around reporting so TPR can continue to manage risks effectively, ensuring the security and quality of the scheme for its members.”
