The Pensions Regulator has fined two trustees of master trust schemes a total of £5,020 for failing to complete a chair’s statement.
It marked the first time the regulator has used its powers in this way following the introduction of strict new rules last year.
TPR orderded the trustee of Nurture Master Trust, MC Trustees Ltd, to pay £2,000 for failing to prepare a chair’s statement for the scheme.
The regulator said it imposed the maximum fine of £2,000 "because the scheme had a professional trustee in place and there were no mitigating factors".
In a separate action, the regulator fined the trustees of the Save and Prosper Funds a total of £3,020, after they failed to prepare a chair’s statement for three master trust schemes.
TPR said it had issued a regulatory intervention report about both cases. In all the schemes the relevant trustee has now produced chair’s statements.
Nicola Parish, executive director for frontline regulation at TPR, said: “Completion of the chair’s statement by trustees is a basic requirement of good governance and we expect trustees to comply.
“We will enforce the law and impose a penalty where trustees of schemes fail to prepare an annual governance statement signed by the chair of trustees. These requirements apply equally to trustees of master trusts."
She warned trustees to be aware that breaches of this type would result in a fine, adding: "we hope that our latest report will act as a reminder to all trustees, professional or otherwise, to ensure they complete the chair’s statement fully and on time.”
Trustees are required to confirm that they have completed the chair’s statement via the scheme return.
TPR said it was supporting trustees in numerous ways, including "new web guidance and news-by-email to help them understand how to complete the new scheme return, including confirmation of completion of a chair’s statement, to demonstrate they are meeting new governance standards".
james.fernyhough@ft.com
