The Pensions Regulator (TPR) has won a legal case against RP Medplant, the sponsor of failed schemes Capita Oak Pension Scheme and Westminster Pension Scheme, which was contesting the appointment of Dalriada as trustee of the schemes.
These two schemes are allegedly involved in a £120m fraud being investigated by the Serious Fraud Office.
Over a thousand individual investors are thought to have been affected by the alleged fraud, including those who invested their pension funds.
Imperial Trustee Services and Thames Trustees, administrators of the schemes, were wound up in 2015, with the liquidator asking for the The Pensions Regulator’s intervention in appointing a new trustee, a year later.
Dalriada was then appointed as such in January 2017.
RP Medplant referred this determination to the Upper Tribunal on the basis that the regulator had no power to appoint a trustee.
On the other hand, The Pensions Regulator requested the court to strike out RP Medplant’s application, on the basis there is no reasonable prospect of the case succeeding, which was granted.
In her determination, Judge Sarah Falk said that RP Medplant’s sole ground for making the reference was that the Capita Oak and Westminster are not trust schemes.
If the schemes were contractual arrangements, then any assets would be received by the administrators beneficially, and it would owe only contractual obligations to pay amounts to members in certain circumstances.
She said: “I have reached the conclusion that the schemes were clearly ‘trust schemes’ on the basis of the documentation establishing them, rather than by reference to how the schemes operated in practice.”
According to Ms Falk, “it is clear that the proposed appointment of Dalriada is intended to offer the best chance of recovery of members’ assets”.
The judge ruled in favour of the regulator, saying that “the fair, just and proportionate decision” is to strike out Medplant’s request.
maria.espadinha@ft.com
