The Pensions Regulator (TPR) has fined Pitmans Trustees (PTL) £6,000 for failing to provide an annual governance statement signed by the chair of trustees for three separate schemes.
The watchdog ordered the professional trustee firm to pay the maximum £2,000 for each of the schemes because, it said, they had failed to meet the statutory requirement and there were no mitigating factors, despite having a professional trustee in place.
PTL notified TPR on 18 May it had failed to prepare a chairman’s statement in its capacity as professional trustee for the Precision Carbide Tools Limited Pension and Life Assurance Scheme.
Following further discussion with PTL, TPR received confirmation that breaches had occurred for two further schemes: the Comshare Retirement and Death Benefits Plan and the EBC Pension Scheme.
Since April 2015, as part of the Occupational Pension Schemes (Charges and Governance) Regulations 2015, defined contribution schemes have been required by law to prepare an annual statement signed by the chairman of the trustees within seven months of the end of each scheme year.
Failure to comply means trustees face a mandatory penalty and TPR said it was legally obliged to impose a fine of between £500 and £2,000.
TPR executive director for frontline regulation Nicola Parish said: “Professional trustees are expected to meet a higher standard of care and to demonstrate a greater level of knowledge and understanding than other trustees.
“We will enforce the law and impose a penalty where trustees fail to prepare an annual governance statement signed by the chair of trustees.”
TPR said the fines were not contested and paid by PTL in full on 11 July.
PTL managing director Richard Butcher (pictured) said: “We regret that these missed deadlines have occurred and, whilst no loss was suffered by members, we take our responsibilities very seriously and accept the fine imposed.
“The omissions occurred due to a delay in implementing our tracking system for this new requirement, but we would like to reassure all clients that the tracking system is now in place and operating well to ensure no further instances should occur.”
In June TPR fined the trustee of the Abbey Manor Group Pension Scheme £500 for failing to meet the same requirement.
