The Pensions Regulator (TPR)’s actions are to be ‘clearer, quicker and tougher’ on trustees, in a departure from its previous approach of ‘educating, enabling and enforcing’, it has confirmed.

Speaking at the Pensions Age Autumn Conference, TPR head of policy Fiona Frobisher stated that its recently launched 21st century trustee initiative is part of the regulator’s aim to be clearer with trustees.

“We are trying to make the standards of governance clearer. We are not setting any new standards; we are not asking trustees to do anything they have not already been expected to do to date. The scattered nature of trustees’ requirements in codes, regulations and guidance means we are making it clearer for trustees to know what they need to do,” Frobisher explained.

The standards trustees will be upheld to will be simpler and fewer in number, with clear measures attached to them, she added.

TPR will also be quicker to action when it finds standards falling, Frobisher said.

“Knowing the basics of where the money is, only 54 per cent can say that process is running properly and is governed properly. That is not good enough. The idea that we will stand by and just allow that to continue while just producing education and guidance is not something that we will be willing to do. We will be looking harder at how we will use our data to identify where those things are going wrong and looking at how we can step in quicker to take action,” she stated.

Finally, the regulator warned it would be tougher around the enforcement of rules, particularly with auto-enrolment requirements.

“As AE has done so well, we are moving from a point where we feel we have to educate people to a much clearer, simpler message, which is, ‘this is the law, if you do not do it we will take action’. You can expect more enforcement of governance standards,” Frobisher said.

While it had previously been publishing bulletins naming trustees and employers failing to complete “basic” duties, such as not providing a chair’s statement, it will now look at enforcement regarding general problems with decision making, management of risks and conflicts of interest.

According to Frobisher, TPR is looking to use a wider set of powers than those it had used previously, such as replacing trustees. For instance, it is now looking to move to a wider set of powers, such as improvement notices to tell people what they are doing wrong and what is expected of them, and also using its Section 72 criminal prosecution powers where necessary.

Next month, the regulator will focus on ‘roles and responsibilities’, Frobisher added, through providing examples of poor behaviour, such as trustees who are not engaged, or the chair managing everything without obtaining group views from the board.

Later in the year it will focus on providing information about perks and strategy. Upskilling and training, managing advisers and administrators, conflicts of interest and value for members will be looked at next year.

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