Pensions Bill

House of Commons

Session 2003 - 04
Internet Publications
Other Bills before Parliament

Pensions Bill

Pensions Bill
Part 1 — The Pensions Regulator
42

(8)
That section also applies to any other person who, without reasonable excuse,
fails to comply with a report notice issued to him.
(9)
Where a report notice is issued, any person who is providing (or who at any
time has provided) services to the notified person in relation to a matter on
which the report is required must give the person appointed to make the report
5
such assistance as he may reasonably require.
(10)
The duty imposed by subsection (9) is enforceable, on the application of the
Regulator, by an injunction or, in Scotland, by an order for specific
performance under section 45 of the Court of Session Act 1988 (c. 36).
(11)
In this section—
10

“specified”, in relation to a report notice, means specified in the notice;

“work-based pension scheme” has the same meaning as in section 5
(Regulator’s objectives).
Gathering information
61
Provision of information
15
(1)
The Regulator may, by notice in writing, require any person to whom
subsection (2) applies to produce any document, or provide any other
information, which is—
(a)
of a description specified in the notice, and
(b)
relevant to the exercise of the Regulator’s functions.
20
(2)
This subsection applies to—
(a)
a trustee or manager of an occupational or personal pension scheme,
(b)
a professional adviser in relation to an occupational pension scheme,
(c)
the employer in relation to—
(i)
an occupational pension scheme, or
25
(ii)
a personal pension scheme where direct payment arrangements
exist in respect of one or more members of the scheme who are
employees, and
(d)
any other person appearing to the Regulator to be a person who holds,
or is likely to hold, information relevant to the exercise of the
30
Regulator’s functions.
(3)
Where the production of a document, or the provision of information, is
required by a notice given under subsection (1), the document must be
produced, or information must be provided, in such a manner, at such a place
and within such a period as may be specified in the notice.
35
62
Inspection of premises
(1)
An inspector may, for the purposes of investigating whether, in the case of any
occupational pension scheme, the occupational scheme provisions are being,
or have been, complied with, at any reasonable time enter premises liable to
inspection.
40
(2)
In subsection (1), the “occupational scheme provisions” means provisions
contained in or made by virtue of—
(a)
any of the following provisions of this Act—

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this Part;

Part 3 (scheme funding);

sections 220 to 222 (member-nominated trustees and directors);

sections 224 to 226 (requirement for knowledge and
understanding);
5

Part 7 (miscellaneous and supplementary);
(b)
either of the following provisions of the Welfare Reform and Pensions
Act 1999 (c. 30)—

section 33 (time for discharge of pension credit liability);

section 45 (information);
10
(c)
any of the provisions of Part 1 of the Pensions Act 1995 (c. 26)
(occupational pension schemes), other than—
(i)
sections 51 to 54 (indexation), and
(ii)
sections 62 to 65 (equal treatment);
(d)
any of the following provisions of the Pension Schemes Act 1993
15
(c. 48)—

Chapter 4 of Part 4 (transfer values);

Chapter 2 of Part 4A (pension credit transfer values);

section 113 (information);

section 175 (levy);
20
(e)
any provisions in force in Northern Ireland corresponding to any
provisions within paragraphs (a) to (d).
(3)
An inspector may, for the purposes of investigating whether, in the case of a
stakeholder scheme—
(a)
sections 1 and 2(4) of the Welfare Reform and Pensions Act 1999
25
(stakeholder pension schemes: registration etc), or
(b)
any corresponding provisions in force in Northern Ireland,

are being, or have been, complied with, at any reasonable time enter premises
liable to inspection.
(4)
An inspector may, for the purposes of investigating whether, in the case of any
30
trust-based personal stakeholder scheme, the trust-based scheme provisions
are being, or have been, complied with, at any reasonable time enter premises
liable to inspection.
(5)
In subsection (4)—

“trust-based personal stakeholder scheme” means a personal pension
35
scheme which—
(a)
is a stakeholder scheme, and
(b)
is established under a trust; and

the “trust-based scheme provisions” means any provisions contained in
or made by virtue of—
40
(a)
any provision which applies in relation to trust-based personal
stakeholder schemes by virtue of paragraph 1 of Schedule 1 to
the Welfare Reform and Pensions Act 1999, as the provision
applies by virtue of that paragraph, or
(b)
any corresponding provision in force in Northern Ireland.
45
(6)
Premises are liable to inspection for the purposes of this section if the inspector
has reasonable grounds to believe that—
(a)
members of the scheme are employed there,

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(b)
documents relevant to the administration of the scheme are being kept
there, or
(c)
the administration of the scheme, or work connected with that
administration, is being carried out there.
(7)
In this section, “stakeholder scheme” means an occupational pension scheme
5
or a personal pension scheme which is or has been registered under—
(a)
section 2 of the Welfare Reform and Pensions Act 1999 (c. 30) (register
of stakeholder schemes), or
(b)
any corresponding provision in force in Northern Ireland.
63
Inspection of premises in respect of employers’ obligations
10
(1)
An inspector may, for the purposes of investigating whether an employer is
complying, or has complied, with the requirements under—
(a)
section 3 of the Welfare Reform and Pensions Act 1999 (duty of
employers to facilitate access to stakeholder pension schemes), or
(b)
any corresponding provision in force in Northern Ireland,
15

at any reasonable time enter premises liable to inspection.
(2)
Premises are liable to inspection for the purposes of subsection (1) if the
inspector has reasonable grounds to believe that—
(a)
employees of the employer are employed there,
(b)
documents relevant to the administration of the employer’s business
20
are being kept there, or
(c)
the administration of the employer’s business, or work connected with
that administration, is being carried out there.
(3)
In subsections (1) and (2), “employer” has the meaning given in section 3(9) of
the Welfare Reform and Pensions Act 1999 (or, where subsection (1)(b) applies,
25
in any corresponding provision in force in Northern Ireland).
(4)
An inspector may, for the purposes of investigating whether, in the case of any
direct payment arrangements relating to a personal pension scheme—
(a)
section 111A of the Pension Schemes Act 1993 (c. 48) (monitoring of
employers’ payments to personal pension schemes), or
30
(b)
any corresponding provision in force in Northern Ireland,

is being, or has been, complied with, at any reasonable time enter premises
liable to inspection.
(5)
Premises are liable to inspection for the purposes of subsection (4) if the
inspector has reasonable grounds to believe that—
35
(a)
employees of the employer are employed there,
(b)
documents relevant to the administration of—
(i)
the employer’s business,
(ii)
the direct payment arrangements, or
(iii)
the scheme to which those arrangements relate,
40

are being kept there, or
(c)
either of the following is being carried out there—
(i)
the administration of the employer’s business, the
arrangements or the scheme;
(ii)
work connected with that administration.
45

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(6)
In the application of subsections (4) and (5) in relation to any provision
mentioned in subsection (4)(b) (a “corresponding Northern Ireland
provision”), references in those subsections to—

direct payment arrangements,

a personal pension scheme,
5

the employer, or

employees of the employer,

are to be read as having the meanings that they have for the purposes of the
corresponding Northern Ireland provision.
64
Inspection of premises: powers of inspectors
10
(1)
Subsection (2) applies where, for a purpose mentioned in subsection (1), (3) or
(4) of section 62 or subsection (1) or (4) of section 63, an inspector enters
premises which are liable to inspection for the purposes of that provision.
(2)
While there, the inspector—
(a)
may make such examination and inquiry as may be necessary for the
15
purpose for which he entered the premises,
(b)
may require any person on the premises to produce, or secure the
production of, any document relevant to compliance with the
regulatory provisions for his inspection,
(c)
may take copies of any such document,
20
(d)
may take possession of any document appearing to be a document
relevant to compliance with the regulatory provisions or take in
relation to any such document any other steps which appear necessary
for preserving it or preventing interference with it,
(e)
may, in the case of any such document which consists of information
25
which is stored in electronic form and is on, or accessible from, the
premises, require the information to be produced in a form—
(i)
in which it can be taken away, and
(ii)
in which it is legible or from which it can readily be produced
in a legible form, and
30
(f)
may, as to any matter relevant to compliance with the regulatory
provisions, examine, or require to be examined, either alone or in the
presence of another person, any person on the premises whom he has
reasonable cause to believe to be able to give information relevant to
that matter.
35
65
Inspection of premises: supplementary
(1)
This section applies for the purposes of sections 62 to 64.
(2)
Premises which are a private dwelling-house not used by, or by permission of,
the occupier for the purposes of a trade or business are not liable to inspection.
(3)
Any question whether—
40
(a)
anything is being or has been done or omitted which might by virtue of
any of the regulatory provisions give rise to a liability for a civil penalty
under or by virtue of section 10 of the Pensions Act 1995 (c. 26) or
section 168(4) of the Pension Schemes Act 1993 (c. 48) (or under or by
virtue of any provision in force in Northern Ireland corresponding to
45
either of them), or

Pensions Bill
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(b)
an offence is being or has been committed under any of the regulatory
provisions,

is to be treated as a question whether the regulatory provision is being, or has
been, complied with.
(4)
An inspector applying for admission to any premises for the purposes of
5
section 62 or 63 must, if so required, produce his certificate of appointment.
(5)
When exercising a power under section 62, 63 or 64 an inspector may be
accompanied by such persons as he considers appropriate.
(6)
Any document of which possession is taken under section 64 may be
retained—
10
(a)
if the document is relevant to proceedings against any person for any
offence which are commenced before the end of the retention period,
until the conclusion of those proceedings, and
(b)
otherwise, until the end of the retention period.
(7)
In subsection (6), “the retention period” means the period comprising—
15
(a)
the period of 12 months beginning with the date on which possession
was taken of the document, and
(b)
any extension of that period under subsection (8).
(8)
The Regulator may, by a direction made before the end of the retention period
(including any extension of it under this subsection), extend it by such period
20
not exceeding 12 months as the Regulator considers appropriate.
(9)
“The regulatory provisions”, in relation to an inspection under subsection (1),
(3) or (4) of section 62 or subsection (1) or (4) of section 63, means the provision
or provisions referred to in that subsection.
66
Penalties relating to sections 61 to 64
25
(1)
A person who, without reasonable excuse, neglects or refuses to provide
information or produce a document when required to do so under section 61 is
guilty of an offence.
(2)
A person who without reasonable excuse—
(a)
intentionally delays or obstructs an inspector exercising any power
30
under section 62, 63 or 64,
(b)
neglects or refuses to produce, or secure the production of, any
document when required to do so under section 64, or
(c)
neglects or refuses to answer a question or to provide information
when so required,
35
is guilty of an offence.
(3)
A person guilty of an offence under subsection (1) or (2) is liable on summary
conviction to a fine not exceeding level 5 on the standard scale.
(4)
An offence under subsection (1) or (2)(b) or (c) may be charged by reference to
any day or longer period of time; and a person may be convicted of a second
40
or subsequent offence by reference to any period of time following the
preceding conviction of the offence.
(5)
Any person who intentionally and without reasonable excuse alters,
suppresses, conceals or destroys any document which he is or is liable to be

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required under section 61 or 64 to produce to the Regulator is guilty of an
offence.
(6)
Any person guilty of an offence under subsection (5) is liable—
(a)
on summary conviction, to a fine not exceeding the statutory
maximum;
5
(b)
on conviction on indictment, to a fine or imprisonment for a term not
exceeding two years, or both.
67
Warrants
(1)
A justice of the peace may issue a warrant under this section if satisfied on
information on oath given by or on behalf of the Regulator that there are
10
reasonable grounds for believing—
(a)
that there is on, or accessible from, any premises any document—
(i)
whose production has been required under section 61 or 64, or
any corresponding provision in force in Northern Ireland, and
(ii)
which has not been produced in compliance with that
15
requirement,
(b)
that there is on, or accessible from, any premises any document whose
production could be so required and, if its production were so required,
the document—
(i)
would not be produced, but
20
(ii)
would be removed, or made inaccessible, from the premises,
hidden, tampered with or destroyed, or
(c)
that—
(i)
an offence has been committed,
(ii)
a person will do any act which constitutes a misuse or
25
misappropriation of the assets of an occupational pension
scheme or a personal pension scheme,
(iii)
a person is liable to pay a penalty under or by virtue of section
10 of the Pensions Act 1995 (c. 26) (civil penalties) or section
168(4) of the Pension Schemes Act 1993 (c. 48) (civil penalties for
30
breach of regulations), or under or by virtue of any provision in
force in Northern Ireland corresponding to either of them, or
(iv)
a person is liable to be prohibited from being a trustee of an
occupational or personal pension scheme under section 3 of the
Pensions Act 1995 (prohibition orders), including that section as
35
it applies by virtue of paragraph 1 of Schedule 1 to the Welfare
Reform and Pensions Act 1999 (c. 30) (stakeholder schemes), or
under or by virtue of any corresponding provisions in force in
Northern Ireland,

and that there is on, or accessible from, any premises any document
40
which relates to whether the offence has been committed, whether the
act will be done or whether the person is so liable, and whose
production could be required under section 61 or 64 or any
corresponding provision in force in Northern Ireland.
(2)
A warrant under this section shall authorise an inspector—
45
(a)
to enter the premises specified in the information, using such force as is
reasonably necessary for the purpose,
(b)
to search the premises and—

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(i)
take possession of any document appearing to be such a
document as is mentioned in subsection (1), or
(ii)
take in relation to such a document any other steps which
appear necessary for preserving it or preventing interference
with it,
5
(c)
to take copies of any such document,
(d)
to require any person named in the warrant to provide an explanation
of any such document or to state where it may be found or how access
to it may be obtained, and
(e)
in the case of any such document which consists of information which
10
is stored in electronic form and is on, or accessible from, the premises,
to require the information to be produced in a form—
(i)
in which it can be taken away, and
(ii)
in which it is legible or from which it can readily be produced
in a legible form.
15
(3)
In subsection (1)—
(a)
any reference in paragraph (a) or (b) to a document does not include
any document which—
(i)
is relevant to whether a person has complied with subsection (3)
of section 219 (information and advice to employees) or
20
regulations under subsection (4) of that section, and
(ii)
is not relevant to the exercise of the Regulator’s functions for
any other reason, and
(b)
any liability to pay a penalty under section 10 of the Pensions Act 1995
(c. 26) which might arise out of a failure to comply with subsection (3)
25
of section 219 or regulations under subsection (4) of that section is to be
disregarded for the purposes of paragraph (c)(iii);

and the references in subsection (2) to such a document as is mentioned in
subsection (1) are to be read accordingly.
(4)
When executing a warrant under this section, an inspector may be
30
accompanied by such persons as he considers appropriate.
(5)
A warrant under this section continues in force until the end of the period of
one month beginning with the day on which it is issued.
(6)
Any document of which possession is taken under this section may be
retained—
35
(a)
if the document is relevant to proceedings against any person for any
offence which are commenced before the end of the retention period,
until the conclusion of those proceedings, and
(b)
otherwise, until the end of the retention period.
(7)
In subsection (6), “the retention period” means the period comprising—
40
(a)
the period of 12 months beginning with the date on which possession
was taken of the document, and
(b)
any extension of that period under subsection (8).
(8)
The Regulator may, by a direction made before the end of the retention period
(including any extension of it under this subsection), extend it by such period
45
not exceeding 12 months as the Regulator considers appropriate.
(9)
In the application of this section in Scotland—