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Pensions Bill


Pensions Bill
Part 1 — The Pensions Regulator

38

 

61      

Other permitted disclosures

(1)   

Section 56 does not preclude the disclosure by the Regulator of restricted

information to—

(a)   

the Secretary of State,

(b)   

the Commissioners of Inland Revenue or their officers, or

5

(c)   

the Department for Social Development in Northern Ireland,

   

if the disclosure appears to the Regulator to be desirable or expedient in the

interests of members of occupational pension schemes or personal pension

schemes or in the public interest.

(2)   

Section 56 does not preclude the disclosure of restricted information—

10

(a)   

with a view to the institution of, or otherwise for the purposes of, any

criminal proceedings,

(b)   

in connection with any other proceedings arising out of—

(i)   

this Act,

(ii)   

the Welfare Reform and Pensions Act 1999 (c. 30),

15

(iii)   

the Pensions Act 1995 (c. 26), or

(iv)   

the Pension Schemes Act 1993 (c. 48),

   

or any corresponding enactment in force in Northern Ireland, or any

proceedings for breach of trust in relation to an occupational pension

scheme,

20

(c)   

with a view to the institution of, or otherwise for the purposes of,

proceedings under—

(i)   

section 7 or 8 of the Company Directors Disqualification Act

1986 (c. 46), or

(ii)   

Article 10 or 11 of the Companies (Northern Ireland) Order 1989

25

(S.I. 1989/2404 (N.I. 18)),

(d)   

in connection with any proceedings under—

(i)   

the Insolvency Act 1986 (c. 45), or

(ii)   

the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405

(N.I. 19)),

30

   

which the Regulator has instituted or in which it has a right to be heard,

(e)   

with a view to the institution of, or otherwise for the purposes of, any

disciplinary proceedings relating to the exercise of his professional

duties by a solicitor, an actuary, an accountant or an insolvency

practitioner,

35

(f)   

with a view to the institution of, or otherwise for the purposes of, any

disciplinary proceedings relating to the exercise by a public servant of

his functions,

(g)   

for the purpose of enabling or assisting an authority in a country

outside the United Kingdom to exercise functions corresponding to

40

those of the Regulator under this Act, the Welfare Reform and Pensions

Act 1999, the Pensions Act 1995 or the Pension Schemes Act 1993, or

(h)   

in pursuance of a Community obligation.

(3)   

In subsection (2)(f), “public servant” means an officer or servant of the Crown

or of any prescribed authority.

45

(4)   

Section 56 does not preclude the disclosure by the Regulator of restricted

information to—

(a)   

the Director of Public Prosecutions,

 

 

Pensions Bill
Part 1 — The Pensions Regulator

39

 

(b)   

the Director of Public Prosecutions for Northern Ireland,

(c)   

the Lord Advocate,

(d)   

a procurator fiscal, or

(e)   

a constable.

(5)   

Section 56 does not preclude the disclosure of restricted information in any

5

case where the disclosure is required by or by virtue of an enactment.

(6)   

Section 56 does not preclude the disclosure of restricted information in any

case where the disclosure is to a Regulator-appointed trustee of an

occupational pension scheme for the purpose of enabling or assisting him to

exercise his functions in relation to the scheme.

10

(7)   

In subsection (6), “Regulator-appointed trustee” means a trustee appointed by

the Regulator under section 7 of the Pensions Act 1995 (c. 26) or any

corresponding provision in force in Northern Ireland.

(8)   

Section 56 does not preclude the disclosure by any person mentioned in

subsection (1) or (4) of restricted information obtained by the person by virtue

15

of that subsection, if the disclosure is made with the consent of the Regulator.

(9)   

Section 56 does not preclude the disclosure by any person specified in the first

column of Schedule 3 of restricted information obtained by the person by

virtue of section 60(1), if the disclosure is made—

(a)   

with the consent of the Regulator, and

20

(b)   

for the purpose of enabling or assisting the person to exercise any

functions specified in relation to him in the second column of the

Schedule.

(10)   

Before deciding whether to give its consent to such a disclosure as is mentioned

in subsection (8) or (9), the Regulator must take account of any representations

25

made to it, by the person seeking to make the disclosure, as to the desirability

of the disclosure or the necessity for it.

62      

 Disclosure of information by the Inland Revenue

(1)   

This section applies to information held by any person in the exercise of tax

functions about any matter which is relevant, for the purposes of those

30

functions, to tax or duty in the case of an identifiable person (in this section

referred to as “tax information”).

(2)   

No obligation as to secrecy imposed by section 182 of the Finance Act 1989

(c. 26) or otherwise shall prevent the disclosure of tax information to the

Regulator for the purpose of enabling or assisting the Regulator to discharge

35

its functions.

(3)   

Where tax information is disclosed to the Regulator by virtue of subsection (2),

it must, subject to subsection (4), be treated for the purposes of section 56 as

restricted information.

(4)   

Sections 58 to 61 do not apply to tax information, and such information must

40

not be disclosed except—

(a)   

to, or in accordance with authority given by, the Commissioners of

Inland Revenue or the Commissioners of Customs and Excise, or

(b)   

with a view to the institution of, or otherwise for the purposes of, any

criminal proceedings.

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Pensions Bill
Part 1 — The Pensions Regulator

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(5)   

In this section “tax functions” has the same meaning as in section 182 of the

Finance Act 1989 (c. 26).

Reports

63      

Publishing reports

(1)   

The Regulator may, if it considers it appropriate to do so in any particular case,

5

publish a report of the consideration given by it to the exercise of its functions

in relation to that case and the results of that consideration.

(2)   

The publication of a report under subsection (1) may be in such form and

manner as the Regulator considers appropriate.

(3)   

For the purposes of the law of defamation, the publication of any matter by the

10

Regulator shall be absolutely privileged.

Codes of practice

64      

Codes of practice

(1)   

The Regulator may issue codes of practice—

(a)   

containing practical guidance in relation to the exercise of functions

15

under the pensions legislation, and

(b)   

regarding the standards of conduct and practice expected from those

who exercise such functions.

(2)   

The Regulator must issue one or more such codes of practice relating to

following matters—

20

(a)   

what constitutes a “reasonable” period for the purposes of any

provision of the pensions legislation which requires any action to be

taken within such a period;

(b)   

the discharge of the duty imposed by section 44 (duty to notify

Regulator of certain events);

25

(c)   

the discharge of the duty imposed by section 45 (duty to report

breaches of the law);

(d)   

the discharge of duties imposed by sections 180 and 184 (duties of

trustees or managers to prepare, review and revise, a statement of

funding principles and a schedule of contributions);

30

(e)   

the discharge of the duty imposed by section 185(2) or (3) of this Act

(duties of trustees or managers of occupational pension schemes to

report failures to pay employer contributions timeously);

(f)   

the discharge of the duties imposed by sections 196 and 197 (member-

nominated trustees and directors);

35

(g)   

the obligations imposed by sections 200 and 201 (requirements for

knowledge and understanding: individual and corporate trustees);

(h)   

the discharge of the duty imposed by section 49(9)(b) of the Pensions

Act 1995 (c. 26) (duty of trustees or managers of occupational pension

schemes to report material failures by employers to pay contributions

40

deducted from employee’s earnings timeously);

(i)   

the discharge of the duty imposed by section 88(1) of that Act (duties of

trustees and managers of money purchase schemes to report failures to

pay employer contributions timeously);

 

 

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Part 1 — The Pensions Regulator

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(j)   

the discharge of the duty imposed by section 111A(7A) of the Pension

Schemes Act 1993 (c. 48) (duty of trustees or managers of personal

pension schemes to report material failures to pay employer

contributions timeously);

(k)   

such other matters as are prescribed for the purposes of this section.

5

(3)   

The Regulator may from time to time revise the whole or any part of a code of

practice issued under this section and issue that revised code.

(4)   

The Regulator may revoke a code of practice issued under this section.

(5)   

A failure on the part of any person to observe any provision of a code of

practice does not of itself render that person liable to any legal proceedings.

10

   

This is subject to section 14(3)(a) and (7) (power for improvement notice to

direct that person complies with code of practice and civil penalties for failure

to comply).

(6)   

A code of practice issued under this section is admissible in evidence in any

legal proceedings and, if any provision of such a code appears to the court or

15

tribunal concerned to be relevant to any question arising in the proceedings, it

must be taken into account in determining that question.

(7)   

In this section—

   

“legal proceedings” includes proceedings of the Pensions Ombudsman;

and

20

   

“the pensions legislation” means any enactment contained in or made by

virtue of—

(a)   

the Pension Schemes Act 1993,

(b)   

Part 1, and section 33, of the Pensions Act 1995 (c. 26), other than

sections 62 to 66A of that Act (equal treatment),

25

(c)   

Part 1 of the Welfare Reform and Pensions Act 1999 (c. 30), or

(d)   

this Act.

(8)   

Sections 65 and 66 make provision about the procedure to be followed when a

code of practice is issued or revoked.

65      

Procedure for issue and publication of codes of practice

30

(1)   

Where the Regulator proposes to issue a code of practice it must prepare and

publish a draft of the code.

(2)   

Where the Regulator publishes a draft under subsection (1), it must consult—

(a)   

such persons as it considers appropriate, and

(b)   

any other persons the Secretary of State requires it to consult.

35

(3)   

Having considered any representations made on the draft, the Regulator must

make such modifications to it as it considers appropriate.

(4)   

Subsections (2) and (3) do not apply—

(a)   

to a code made for the purpose only of consolidating other codes issued

under section 64, or

40

(b)   

to a code if the Secretary of State considers consultation inexpedient by

reason of urgency.

(5)   

If the Regulator determines to proceed with a draft, it must send it to the

Secretary of State who—

 

 

Pensions Bill
Part 1 — The Pensions Regulator

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(a)   

if he approves of it, must lay it before Parliament, and

(b)   

if he does not approve of it, must publish details of his reasons for

withholding approval.

(6)   

Where a draft is laid before Parliament under subsection (5)(a)—

(a)   

if within the period mentioned in subsection (7) either House so

5

resolves, no further proceedings may be taken on the draft code,

(b)   

if no such resolution is passed, the Regulator must issue the code in the

form of the draft.

(7)   

The period referred to in subsection (6)(a) is the period of 40 days—

(a)   

beginning with the day on which the draft is laid before Parliament (or,

10

if it is laid before the two Houses on different days, with the later of the

two days), and

(b)   

ignoring any period during which Parliament is dissolved or

prorogued or during which both Houses are adjourned for more than

four days.

15

(8)   

The fact that no further proceedings may be taken on a draft code in accordance

with subsection (6)(a) does not prevent the laying of a new draft.

(9)   

A code issued in accordance with subsection (6)(b) shall come into effect on

such day as the Secretary of State may by order appoint.

   

Without prejudice to section 238, such an order may contain such transitional

20

provisions or savings as appear to the Secretary of State to be necessary or

expedient in connection with the code of practice brought into operation.

(10)   

The Regulator must arrange for any code issued by it under section 64 to be

published in the way appearing to it to be appropriate.

(11)   

The Regulator may charge a reasonable fee for providing a person with a copy

25

of a code published under this section.

(12)   

This section applies to a revised code as it applies to the first issue of a code.

66      

Revocation of codes of practice

(1)   

A code of practice may be revoked by the Secretary of State by order.

(2)   

An order under this section may be made only with the consent of the

30

Regulator.

(3)   

Without prejudice to section 238, an order under this section may contain such

savings as appear to the Secretary of State to be necessary or expedient in

connection with the revocation of the code.

Exercise of regulatory functions

35

67      

The Regulator’s procedure in relation to its regulatory functions

(1)   

The Regulator must determine the procedure that it proposes to follow in

relation to the exercise of its regulatory functions.

(2)   

For the purposes of this Part the “regulatory functions” of the Regulator are—

(a)   

the power to issue an improvement notice under section 14,

40

(b)   

the power to issue a third party notice under section 15,

 

 

Pensions Bill
Part 1 — The Pensions Regulator

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(c)   

the reserved regulatory functions (see Schedule 2),

(d)   

the power to vary or revoke under section 75 (to the extent that it does

not fall within paragraph (c)),

(e)   

the power under section 2(3)(a) of the Welfare Reform and Pensions Act

1999 (c. 30) to refuse to register a scheme under section 2 of that Act,

5

(f)   

the power to make an order under section 7 of the Pensions Act 1995

(c. 26) appointing a trustee (to the extent that it does not fall within

paragraph (c)),

(g)   

the power to give directions under section 72B of that Act (directions

facilitating winding up), and

10

(h)   

such other functions of the Regulator as may be prescribed.

(3)   

The Determinations Panel must determine the procedure to be followed by it

in relation to any exercise by it on behalf of the Regulator of—

(a)   

the power to determine whether to exercise a regulatory function, and

(b)   

where the Panel so determines to exercise a regulatory function, the

15

power to exercise the function in question.

(4)   

The procedure determined under this section—

(a)   

must provide for the procedure required under—

(i)   

section 70 (standard procedure), and

(ii)   

section 72 (special procedure), and

20

(b)   

may include such other procedural requirements as the Regulator or, as

the case may be, the Panel considers appropriate.

(5)   

This section is subject to—

(a)   

sections 73 to 78 (the remaining provisions concerning the procedure in

relation to the regulatory functions), and

25

(b)   

any regulations made by the Secretary of State under paragraph 19 of

Schedule 1.

68      

Publication of procedure in relation to regulatory functions

(1)   

The Regulator must issue a statement of the procedure determined under

section 67.

30

(2)   

The Regulator must arrange for the statement to be published in the way

appearing to it to be appropriate.

(3)   

The Regulator may charge a reasonable fee for providing a person with a copy

of the statement.

(4)   

If the procedure determined under section 67 is changed in a material way, the

35

Regulator must publish a revised statement.

(5)   

The Regulator must, without delay, give the Secretary of State a copy of any

statement which it issues under this section.

69      

Application of standard and special procedure

(1)   

The Regulator must comply with the standard procedure (see section 70) or,

40

where section 71 applies, the special procedure (see section 72) in a case

where—

(a)   

the Regulator considers that the exercise of one or more of the

regulatory functions may be appropriate, or

 

 

Pensions Bill
Part 1 — The Pensions Regulator

44

 

(b)   

an application is made under or by virtue of any of the provisions listed

in section 11(6) for the Regulator to exercise a reserved regulatory

function.

(2)   

For the purposes of section 70, references to the regulatory action under

consideration in a particular case are—

5

(a)   

in a case falling within subsection (1)(a), references to the exercise of the

one or more regulatory functions which the Regulator considers that it

may be appropriate to exercise, and

(b)   

in a case falling within subsection (1)(b), references to the exercise of the

reserved regulatory function which is the subject-matter of the

10

application.

(3)   

Neither section 70 (standard procedure) nor section 72 (special procedure)

apply in relation to a determination whether to exercise a regulatory function

on a review under section 73 (compulsory review of regulatory action).

70      

Standard procedure

15

(1)   

The procedure determined under section 67 must make provision for the

standard procedure.

(2)   

The “standard procedure” is a procedure which provides for—

(a)   

the giving of notice to such persons as it appears to the Regulator

would be directly affected by the regulatory action under consideration

20

(“a warning notice”),

(b)   

those persons to have an opportunity to make representations,

(c)   

the consideration of any such representations and the determination

whether to take the regulatory action under consideration,

(d)   

the giving of notice of the determination to such persons as appear to

25

the Regulator to be directly affected by it (“a determination notice”),

(e)   

the determination notice to contain details of the right of referral to the

Tribunal under subsection (3),

(f)   

the form and further content of warning notices and determination

notices and the manner in which they are to be given, and

30

(g)   

the time limits to be applied at any stage of the procedure.

(3)   

Where the standard procedure applies, the determination which is the subject-

matter of the determination notice may be referred to the Tribunal (see section

76) by—

(a)   

any person to whom the determination notice is given as required

35

under subsection (2)(d), and

(b)   

any other person who appears to the Tribunal to be directly affected by

the determination.

(4)   

Where that determination was a determination to exercise a regulatory

function, the Regulator must not exercise the function—

40

(a)   

during the period within which the determination may be referred to

the Tribunal (see section 77(1)), and

(b)   

if the determination is so referred, until the reference, and any appeal

against the Tribunal’s determination, has been finally disposed of.

(5)   

Subsection (4) does not apply where the determination is a determination to

45

exercise any of the following functions—

 

 

 
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