Pensions Bill

House of Commons

Session 2003 - 04
Internet Publications
Other Bills before Parliament

Pensions Bill

Pensions Bill
Part 1 — The Pensions Regulator
49

(a)
the reference to a justice of the peace is to be read as a reference to a
justice within the meaning of the Criminal Procedure (Scotland) Act
1995 (c. 46), and
(b)
the references in subsections (1) and (2)(a) to information are to be read
as references to evidence.
5
68
Sections 61 to 67: interpretation
(1)
This section applies for the purposes of sections 61 to 67.
(2)
“Document” includes information recorded in any form, and any reference to
production of a document, in relation to information recorded otherwise than
in a legible form, is to producing a copy of the information—
10
(a)
in a legible form, or
(b)
in a form from which it can readily be produced in a legible form.
(3)
“Inspector” means a person appointed by the Regulator as an inspector.
Provision of false or misleading information
69
Offences of providing false or misleading information
15
(1)
Any person who knowingly or recklessly provides the Regulator with
information which is false or misleading in a material particular is guilty of an
offence if the information—
(a)
is provided in purported compliance with a requirement under—
(i)
section 51 (the register: duties of trustees or managers),
20
(ii)
section 53 (duty of trustees or managers to provide scheme
return),
(iii)
section 61 (provision of information), or
(iv)
section 64 (inspection of premises: powers of inspectors),
(b)
is provided in applying for registration of a pension scheme under
25
section 2 of the Welfare Reform and Pensions Act 1999 (c. 30)
(registration of stakeholder pension schemes), or
(c)
is provided otherwise than as mentioned in paragraph   (a) or (b) but in
circumstances in which the person providing the information intends,
or could reasonably be expected to know, that it would be used by the
30
Regulator for the purpose of exercising its functions under this Act or
the Pensions Act 1995 (c. 26).
(2)
Any person guilty of an offence under subsection (1) is liable—
(a)
on summary conviction, to a fine not exceeding the statutory
maximum;
35
(b)
on conviction on indictment, to a fine or imprisonment for a term not
exceeding two years, or both.
Use of information
70
Use of information
Information—
40
(a)
contained in the register, or

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(b)
otherwise held by the Regulator in the exercise of any of its functions,
may be used by the Regulator for the purposes of, or for any purpose
connected with or incidental to, the exercise of its functions.
Disclosure of information
71
Restricted information
5
(1)
Except as provided by sections 60(9), 73 to 76 and 216, restricted information
must not be disclosed—
(a)
by the Regulator, or
(b)
by any person who receives the information directly or indirectly from
the Regulator,
10

except with the consent of the person to whom it relates and (if different) the
person from whom the Regulator obtained it.
(2)
For the purposes of this section and sections 72 to 76, “restricted information”
means any information obtained by the Regulator in the exercise of its
functions which relates to the business or other affairs of any person, except for
15
information—
(a)
which at the time of the disclosure is or has already been made
available to the public from other sources, or
(b)
which is in the form of a summary or collection of information so
framed as not to enable information relating to any particular person to
20
be ascertained from it.
(3)
Any person who discloses information in contravention of this section is guilty
of an offence and liable—
(a)
on summary conviction, to a fine not exceeding the statutory
maximum;
25
(b)
on conviction on indictment, to a fine or imprisonment for a term not
exceeding two years, or both.
72
Information supplied to the Regulator by corresponding overseas authorities
(1)
Subject to subsection (2), for the purposes of section 71, “restricted
information” includes information which has been supplied to the Regulator,
30
for the purposes of its functions, by an authority which exercises functions
corresponding to the functions of the Regulator in a country or territory
outside the United Kingdom.
(2)
Sections 73 to 76 do not apply to such information as is mentioned in
subsection (1), and such information must not be disclosed except—
35
(a)
as provided in section 71,
(b)
for the purpose of enabling or assisting the Regulator to discharge its
functions, or
(c)
by or on behalf of—
(i)
the Regulator, or
40
(ii)
any public authority (within the meaning of section 6 of the
Human Rights Act 1998 (c. 42)) which receives the information
directly or indirectly from the Regulator,

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for any of the purposes specified in section 17(2)(a) to (d) of the Anti-
terrorism, Crime and Security Act 2001 (c. 24) (criminal proceedings
and investigations).
(3)
Section 18 of the Anti-terrorism, Crime and Security Act 2001 (restriction on
disclosure of information for overseas purposes) has effect in relation to a
5
disclosure authorised by subsection (2) as it has effect in relation to a disclosure
authorised by any of the provisions to which section 17 of that Act applies.
73
Disclosure for facilitating exercise of functions by the Regulator
(1)
Section 71 does not preclude the disclosure of restricted information in any
case in which disclosure is for the purpose of enabling or assisting the
10
Regulator to exercise its functions.
(2)
Subsection (3) applies where, in order to enable or assist the Regulator properly
to exercise any of its functions, the Regulator considers it necessary to seek
advice from any qualified person on any matter of law, accountancy, valuation
or other matter requiring the exercise of professional skill.
15
(3)
Section 71 does not preclude the disclosure by the Regulator to a person
qualified to provide that advice of such information as appears to the
Regulator to be necessary to ensure that he is properly informed with respect
to the matters on which his advice is sought.
74
Disclosure for facilitating exercise of functions by the Board
20
Section 71 does not preclude the disclosure of restricted information in any
case in which disclosure is for the purpose of enabling or assisting the Board of
the Pension Protection Fund to exercise its functions.
75
Disclosure for facilitating exercise of functions by other supervisory
authorities
25
(1)
Section 71 does not preclude the disclosure by the Regulator of restricted
information to any person specified in the first column of Schedule 3 if the
Regulator considers that the disclosure would enable or assist that person to
exercise the functions specified in relation to him in the second column of that
Schedule.
30
(2)
The Secretary of State may after consultation with the Regulator—
(a)
by order amend Schedule 3 by—
(i)
adding any person exercising regulatory functions and
specifying functions in relation to that person,
(ii)
removing any person for the time being specified in the
35
Schedule, or
(iii)
altering the functions for the time being specified in the
Schedule in relation to any person, or
(b)
by order restrict the circumstances in which, or impose conditions
subject to which, disclosure may be made to any person for the time
40
being specified in the Schedule.

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76
Other permitted disclosures
(1)
Section 71 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 71 does not preclude the disclosure of restricted information—
10
(a)
by or on behalf of—
(i)
the Regulator, or
(ii)
any public authority (within the meaning of section 6 of the
Human Rights Act 1998 (c. 42)) which receives the information
directly or indirectly from the Regulator,
15

for any of the purposes specified in section 17(2)(a) to (d) of the Anti-
terrorism, Crime and Security Act 2001 (c. 24) (criminal proceedings
and investigations),
(b)
in connection with any proceedings arising out of—
(i)
this Act,
20
(ii)
the Welfare Reform and Pensions Act 1999 (c. 30),
(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
25
scheme,
(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
30
(ii)
Article 10 or 11 of the Companies (Northern Ireland) Order 1989
(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
35
(N.I. 19)),

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
40
practitioner,
(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
45
outside the United Kingdom to exercise functions corresponding to
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.

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(3)
In subsection (2)(f), “public servant” means an officer or servant of the Crown
or of any prescribed authority.
(4)
Section 71 does not preclude the disclosure by the Regulator of restricted
information to—
(a)
the Director of Public Prosecutions,
5
(b)
the Director of Public Prosecutions for Northern Ireland,
(c)
the Lord Advocate,
(d)
a procurator fiscal, or
(e)
a constable.
(5)
Section 71 does not preclude the disclosure of restricted information in any
10
case where the disclosure is required by or by virtue of an enactment.
(6)
Section 71 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.
15
(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 71 does not preclude the disclosure by any person mentioned in
subsection (1) or (4) of restricted information obtained by the person by virtue
20
of that subsection, if the disclosure is made with the consent of the Regulator.
(9)
Section 71 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 75(1), if the disclosure is made—
(a)
with the consent of the Regulator, and
25
(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
30
made to it, by the person seeking to make the disclosure, as to the desirability
of the disclosure or the necessity for it.
(11)
Section 18 of the Anti-terrorism, Crime and Security Act 2001 (c. 24) (restriction
on disclosure of information for overseas purposes) has effect in relation to a
disclosure authorised by subsection (2) as it has effect in relation to a disclosure
35
authorised by any of the provisions to which section 17 of that Act applies.
77
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
functions, to tax or duty in the case of an identifiable person (in this section
40
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
its functions.
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(3)
Where tax information is disclosed to the Regulator by virtue of subsection (2)
above or section 19 of the Anti-terrorism, Crime and Security Act 2001 (c. 24)
(disclosure of information held by revenue departments), it must, subject to
subsection (4), be treated for the purposes of section 71 as restricted
information.
5
(4)
Sections 73 to 76 do not apply to tax information, and such information must
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
10
criminal proceedings.
(5)
In this section “tax functions” has the same meaning as in section 182 of the
Finance Act 1989 (c. 26).
Reports
78
Publishing reports etc
15
(1)
The Regulator may, if it considers it appropriate to do so in any particular case,
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.
20
(3)
For the purposes of the law of defamation, the publication of any matter by the
Regulator shall be absolutely privileged.
Codes of practice
79
Codes of practice
(1)
The Regulator may issue codes of practice—
25
(a)
containing practical guidance in relation to the exercise of functions
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 the
30
following matters—
(a)
what constitutes a “reasonable” period for the purposes of any
provision of the pensions legislation (other than any enactment
contained in or made by virtue of Part 2) which requires any action to
be taken within such a period;
35
(b)
the discharge of the duty imposed by section 58 (duty to notify
Regulator of certain events);
(c)
the discharge of the duty imposed by section 59 (duty to report
breaches of the law);
(d)
the discharge of duties imposed on trustees or managers of
40
occupational pension schemes by, or by virtue of, Part 3 (scheme
funding);

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(e)
the discharge of the duty imposed by section 209(2) or (3) of this Act
(duties of trustees or managers of occupational pension schemes etc to
report failures to pay employer contributions etc timeously);
(f)
the discharge of the duties imposed by sections 220 and 221 (member-
nominated trustees and directors);
5
(g)
the obligations imposed by sections 224 and 225 (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
10
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 etc timeously);
(j)
the discharge of the duty imposed by section 111A(7A) of the Pension
15
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.
(3)
The Regulator may from time to time revise the whole or any part of a code of
20
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.

This is subject to section 14(3)(a) and (8) (power for improvement notice to
25
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
tribunal concerned to be relevant to any question arising in the proceedings, it
30
must be taken into account in determining that question.
(7)
In this section—

“legal proceedings” includes proceedings of the Pensions Ombudsman,
proceedings of the Ombudsman for the Board of the Pension Protection
Fund and proceedings of the Board of the Pension Protection Fund
35
under section 190 or 191; and

“the pensions legislation” means any enactment contained in or made by
virtue of—
(a)
the Pension Schemes Act 1993,
(b)
Part 1 of the Pensions Act 1995, other than sections 62 to 66A of
40
that Act (equal treatment),
(c)
Part 1 or section 33 of the Welfare Reform and Pensions Act 1999
(c. 30), or
(d)
this Act.
(8)
Sections 80 and 81 make provision about the procedure to be followed when a
45
code of practice is issued or revoked.