Commentary on Sections Part 6 – Private Pensions Section 46: Prohibition and suspension orders: directors of corporate trusteesSchedule 19: Prohibition orders: consequential amendments
191.The Pensions Regulator has the power to suspend and prohibit trustees from acting as trustees in the future if they are not deemed to be a fit and proper person to be a trustee of a scheme. Previously, if a prohibited trustee was found to be or became the director of a company which acted as a trustee of a scheme (a corporate trustee) there was no restriction on the ability of that company to operate as a corporate trustee.
192.This section inserts a new section into the PA 1995 to forbid a company from being a trustee if one or more of its directors have been prohibited by the Regulator. If the director(s) who has/have been prohibited subsequently leave(s) the board of the company, the prohibition will be immediately lifted. In addition, the company is allowed to apply to the Regulator for the prohibition to be waived.
193.The Regulator has the power to suspend a trustee “pending consideration being given to the institution of proceedings against him for an offence involving dishonesty or deception” (section 4(1)(aa) of the PA 1995).
194.Section 45(3) to (5) allows the Pensions Regulator to suspend a corporate trustee where it or one of its directors could be suspended under section 4(1)(aa).