The Pensions Regulator is to prosecute an 85-year-old former adviser for his alleged role in making loans from a pension scheme.
The regulator has alleged former adviser Derek Thomas, of West Oxfordshire, assisted or encouraged four prohibited loans.
It also accused two former pension trustees, Stephen Smith, 63, of Broughton-in-Furness in Cumbria and David Boardman, 68, of Preston, of making the loans.
Smith and Preston, who are trustees of the Worthington Employee Pension Top Up Scheme, are accused of making five prohibited loans from the scheme and one prohibited investment.
The allegations are in relation to loans and an investment totalling £700,000 in value.
These included three loans by the scheme to Stonewell Property Company Limited, which was the parent company of the scheme’s sponsoring employer, Marcus Worthington and Company Ltd.
Under the 1995 Pensions Act and the 2005 Occupational Pension Schemes Regulations, certain employer-related investments made by an occupational pension scheme are prohibited.
This includes loans to a person connected or associated with the scheme employer.
The scheme made an investment in a retail park where the land concerned had been let on a long lease to companies connected and associated with Marcus Worthington and Company Ltd.
Under the law, investments of more than 5 per cent of the scheme value in land used by, or subject to a lease in favour of a person connected or associated with the scheme employer, are prohibited.
A breach of these laws can potentially lead to an unlimited fine and imprisonment.
The three men are set to appear before Preston Magistrates’ Court at 2pm on October 19.
jane.matthews@ft.com
