Clifford Chance

UK Pensions Regulator consults on policy for new criminal sanctions: some comfort for lenders?

29 March 2021

The Pensions Regulator has published a consultation on its draft policy (the "Policy") which sets out the approach it will take in the investigation and prosecution of the new criminal offences introduced by the Pension Schemes Act 2021. While the Policy helpfully provides some indication as to how the Pensions Regulator intends to use its new powers (which includes examples in a lending context of where the Regulator does not intend to use them), there remain uncertainties and gaps.

In this briefing, we consider the Policy and what comfort it may offer lenders. But while the guidance is helpful, its non-binding nature, combined with statements indicating that the Regulator is to a certain extent reserving its position (the Policy outlines circumstances where the Regulator will not “usually” prosecute) and the lack of guidance from other prosecuting authorities mean that lenders cannot ignore the risks.

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