Posted on by Nigel Ross-Scott

Press Release

PIMFA comment on DWP white paper on Defined Benefit Pensions

19th March 2018

PIMFA welcomes the proposed commitments in the Department for Work and Pensions (DWP) White Paper on ‘Protecting Defined Benefit Pension Schemes’ as a bid to help improve standards of governance and a move toward consolidation.

The DWP paper outlines the additional powers that the Regulator will receive to allow them to apply punitive fines to those who have deliberately put a DB pension scheme at risk.  Legislation will also introduce a new criminal offence to punish those found to have committed reckless behaviour.  And the Regulator’s ability to further enforce DB scheme funding standards will be bolstered through a revised code.

Other commitments include government legislation to furnish the Regulator with some of the information gathering powers already in place for Defined Contribution (DC) schemes for Defined Benefit (DB) schemes to ensure a more level playing field.

There will be a requirement to for the Trustees of DB pension schemes to appoint a Chair, and for that Chair to report to the Regulator in the form of a Chair’s Statement.  PIMFA, the UK’s leading trade association for the personal investment management and financial advice sector, believe this is a positive step in heightening accountability and good governance, which in turn will help strengthen individuals’ trust in the schemes of which they are members.

DWP have also highlighted a proposal for consultation on the legislative framework and authorisation régime within which new forms of consolidation vehicles could operate to drive scale and efficiencies.

Commenting on the paper, Simon Harrington, Senior Policy Adviser at PIMFA, said:
“We welcome the commitments in the White Paper which we believe are both proportionate and conducive to good consumer outcomes. We are particularly pleased to see a requirement for DB schemes to provide a Chair’s statement which will contribute towards improved standards of accountability and governance for such schemes. The clear indication of a move towards consolidation and the benefits that accompany it are also welcome.

However, we note the context set by the DWP comment, which we support, that the majority of DB schemes in the UK are well run and that recent events should not be allowed to colour judgements of them”.

PIMFA will be working with the government to offer assistance in the development of the detailed framework to ensure that powers given to the Regulator will be proportionate and practical for schemes to comply with.

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Notes for Editors

About PIMFA – the Personal Investment Management & Financial Advice Association

  • PIMFA is the UK’s leading trade association for firms that provide investment management and financial advice to everyone from individuals and families to charities, pension funds, trusts and companies.
  • PIMFA represents both full and associate member firms.
    Full members provide a range of financial solutions including financial advice, portfolio management, as well as investment and execution services. They assist everyone from individuals and families, to charities and pension funds, all the way to trusts and companies.
    Associate members provide professional services to the PIMFA community.
  • PIMFAleads the debate on policy and regulatory recommendations to ensure that the UK remains a global centre of excellence in the wealth management, investment advice and financial planning arena.  Our mission is to create an optimal operating environment so that its member firms can focus on delivering the best service to clients, providing responsible stewardship for their long-term savings and investments.
  • PIMFA was created in June 2017 as the outcome of the merger between the Association of Professional Financial Advisers (APFA) and Wealth Management Association (WMA) – read more.

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