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An ex-government pensions policy chief has welcomed the pensions regulator's shift away from encouraging taking legal advice in conflict of interest cases in its latest guidance.
The 43-page report last week followed February's consultation about the correct protocols if trust beneficiaries feel something is preventing the trustees carrying out their duties correctly.
And Peter Askins a director of Independent Trustees Services and former head of defined benefit policy for the department for work and pensions, praised the document for dowplaying the need for lawyers to be involved in the resolution.
He said "Along with many other industry commentators ITS had doubts about the draft document issued for consultation, but the final version has exceeded expectations.
"ITS greatly welcomes the change in tone from the draft document, which had more than 50 references to taking legal advice, the final version adopts a more proportionate and pragmatic approach with legal advice very much a matter of last resort.
"The case studies demonstrating the value independent trustees can add to trust boards where conflicts arise is a further demonstration of the Regulator's practical approach to these matters."
The report states: "Where a conflict is non-trivial, and where such a conflict could have the potential to be detrimental to the conduct or decisions taken by the trustees, the regulator would expect trustees to seriously consider seeking independent legal advice to ascertain the best way to manage or avoid it."
But Peter Docking, partner of pension lawyers Sacker & Partners LLP, accused the regulator of not offering "real conclusions" on a number of "thorny issues".
He said: "The overall tone of the guidance is less categorical, with the regulator softening its stance in areas such as the risk of having trustees on the board who also hold senior positions with the sponsoring employer.
"With its emphasis on education and support, the guidance perhaps stops short of offering any real conclusions on thorny issues such as disclosure of confidential information.
"Not surprisingly, given the complexities of the law relating to conflicts, the regulator still points trustees in the direction of legal advice in any number of places."
Chris Dobson, executive director of the pensions regulator, said: "There should be a culture of openness – disclosure of conflicts should be embraced, not ignored, and we expect all conflicts of interest to be resolved sensibly. Where a conflict comes to the attention of the regulator, we may take action where appropriate."
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