The regulation of pensions—division of roles between the Pensions Regulator and the FCA
The regulation of pensions—division of roles between the Pensions Regulator and the FCA

The following Pensions guidance note provides comprehensive and up to date legal information covering:

  • The regulation of pensions—division of roles between the Pensions Regulator and the FCA
  • Role of the Pensions Regulator
  • Role of the FCA
  • Area of overlap between the Pensions Regulator and the FCA
  • How do the Pensions Regulator and FCA work together?
  • The memorandum of understanding between the Pensions Regulator and the FCA
  • Joint guide on DC governance from the Pensions Regulator and FCA
  • Joint work on developing pensions strategy
  • Joint protocol for DB to DC transfers

Role of the Pensions Regulator

Statutory objectives

The core role of the Pensions Regulator is to fulfil the statutory objectives set out in the Pensions Act 2004, s 5 (PeA 2004).

These are:

  1. to protect the benefits of, or in respect of, members of occupational pension schemes

  2. to protect the benefits of, or in respect of, members of personal pension schemes who are:

    1. employees in respect of whom there are 'direct payment arrangements' (defined below), and

    2. where the scheme is a stakeholder pension scheme, any other members

  3. to reduce the risk of situations arising which may lead to compensation being payable from the Pension Protection Fund

  4. to maximise compliance with auto-enrolment duties (for more information on which, see Practice Note: Auto-enrolment—an introduction

  5. to promote and to improve understanding of the good administration of 'work-based pension schemes', ie:

    1. an occupational pension scheme

    2. a personal pension scheme where there are 'direct payment arrangements' (defined below) in respect of one or more members of the scheme who are employees, or

    3. a stakeholder pension scheme

'Direct payment arrangements' is defined under the Pension Schemes Act 1993, s 111A(2) (PSA 1993) as arrangements under which contributions fall to be paid by or on behalf of the employer towards the scheme:

  1. on the employer’s own account (but in respect of the employee), or

  2. on behalf of the