Commentary on Sections New powers in respect of occupational and personal pension schemes Section 13: Improvement Notices
61.This section provides that if the Regulator is of the opinion that someone has not complied with the “pensions legislation” (as defined in subsection (7)), it may issue an improvement notice directing the person to act to remedy or prevent a recurrence of the contravention. An improvement notice must specify the nature of the contravention and the evidence on which the Regulator has based its opinion that the contravention has occurred. For each step which the notice requires to be taken, the notice must specify the period within which the step must be taken (the time period must not be less than 21 days from the date of the notice).
62.Subsection (3) provides that an improvement notice may be framed by reference to a code of practice issued by the Regulator under section 90 and may allow the person to whom the notice is made a choice of ways to remedy or prevent the recurrence of the contravention. Subsection (4) states that the requirement to comply with directions in an improvement notice can be dependent on compliance by a third party with a direction or directions contained in a notice under section 14 (which concerns third party notices – see below). The improvement notice can direct the person to whom it was issued to inform the Regulator, within the period specified in the notice, of the measures taken following issue of the notice. Subsections (8) and (9) make provision for the imposition of civil penalties under section 10 of the Pensions Act 1995 (civil penalties) in cases where this section is contravened.