" TPR’s interventionist approach is likely to impact the market, and over time we expect smaller and less robust schemes will wind-up.”"
Stakeholders told the regulator they wanted a 'clearer, tougher and more prescriptive' approach.
In response, TPR says it will develop a broader range of regulatory approaches and use a wider range of regulatory interventions, with a particular focus on higher-risk pension schemes.
Under its new approach, the regulator says it will use its powers "more frequently, and more quickly, drawing on our improved regulatory oversight to decide on the appropriate intervention and moving swiftly to the appropriate resolution".
In its publication, The Pensions Regulator said: "Our ‘educate, enable, enforce’ approach is no longer an appropriate response to all the responsibilities within our remit. We will increase our horizon scanning capability and make better use of technology and data.
"We already intervene through using our regulatory powers, so that trustees and employers become compliant and meet their responsibilities. However, stakeholders have told us that we could be tougher in holding people to account for breaching pensions law. We also know from our experience of implementing AE that visible policing by a regulator affects behaviours, and encourages compliance.
"We therefore intend to broaden the range of our regulatory interventions and draw from the full spectrum of our powers, supplemented by targeted communications with clear guidance."
Kate Smith, head of pensions at Aegon, commented: “Today’s publication by The Pensions Regulator clearly demonstrates that the regulator is upping its game by increasing its scrutiny of all pension schemes, including one-to-one supervision for higher risk schemes.
“The new master trust rules have already shown that the regulator is keen to flex its powers and adopt a more FCA-style approach to regulation. This new regulatory approach should give consumers increased confidence in pension saving, regardless of the type of scheme they invest in. TPR’s interventionist approach is likely to impact the market, and over time we expect smaller and less robust schemes will wind-up.”
