The Financial Conduct Authority has been ordered to pay a £2,000 fine by The Pensions Regulator over a lack of details in its defined contribution scheme documentation.
This is the highest penalty the pensions watchdog can give to a pension scheme for failing to comply with the chair's statement.
The chair’s statement is the document in which the DC scheme trustees explain the actions they have taken to comply with certain obligations.
It must include information on the scheme’s default fund and its governance, the costs and charges applied, and the assessment of value for members, among other topics.
An FCA spokesperson said: “In considering the FCA Pension Plan’s application to become an authorised master trust, TPR reviewed its 2018 DC governance statement and ruled it contained insufficient detail.
“The FCA Pension Plan trustee has apologised to members of the plan, and reviewed systems and processes to ensure all the required information is available to members and the 2019 governance statement (provided in October) was fully compliant.
"The plan’s application to become an authorised master trust has been approved.”
FTAdviser understands TPR ruled the FCA should have provided additional detail on the regular training that members of the trustee board receive to maintain their knowledge in relation to the scheme’s governing documentation.
The FCA should have also provided historical detail on fund managers’ costs and charges for both default and non-default strategies and stated the specific date on which the most recent review of the investment strategy had taken place.
In August, TPR had issued a similar fine to the government-backed workplace pension scheme National Employment Savings Trust, also worth £2,000, for not complying with the chair's statement requirements.
In November the regulator finalised the master trust authorisation process with a final tally of 37 master trusts having been approved.
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