7 days

7 Days is a weekly round up of developments in pensions, normally published on Monday afternoons. We collate this information from key industry sources, such as the DWP, HMRC and TPR.

In this 7 Days

HMRC issues update to draft guidance on overseas pensions
House of Commons Library briefing paper on Master Trusts
PPF publishes note on risk appetite
TPR issues first chair’s statement fines against master trust schemes

HMRC issues update to draft guidance on overseas pensions

On 3 January 2017, HMRC published updated draft guidance on “pension tax for overseas pensions”, which gives information in relation to the proposed changes to the conditions to be an “overseas pension scheme” and a “recognised overseas pension scheme”.

The updated version includes a new Chapter 3, on the taxation of non-UK registered schemes.

House of Commons Library briefing paper on Master Trusts

The House of Commons Library published a briefing paper on 7 January 2017, looking at the proposed provisions to regulate Master Trusts in the current Pension Schemes Bill (“the Bill”).

The Bill is scheduled to have its third reading in the Lords on 16 January 2017, after which it will proceed to its Commons stages.

PPF publishes note on risk appetite

On 5 January 2017, the PPF published a revised “risk appetite” statement. The note looks at the PPF Board’s attitude towards its key strategic, funding, financial and operational risks. In particular, it sets out the level of risk that the Board chooses to take in pursuit of its strategic objectives.

The risk appetite is set and reviewed annually by the Board, and monitored by the Risk Audit Committee and the Investment Committee.

TPR issues first chair’s statement fines against master trust schemes

On 9 January 2017, TPR announced that it had issued its first fines against a number of master trust schemes for failing to complete a chair’s statement.

The trustee of Nurture Master Trust, MC Trustees Ltd, was ordered to pay a fine of £2,000 for failing to prepare a chair’s statement. The maximum fine of £2,000 was imposed because the scheme had a professional trustee in place and there were no mitigating factors.

In separate action, the trustees of the Save and Prosper Funds were fined a total of £3,020 after failing to prepare a chair’s statement for three master trust schemes.

TPR issued a regulatory intervention report on the cases.

Nicola Parish, Executive Director for Frontline Regulation at TPR, said: “Completion of the chair’s statement by trustees is a basic requirement of good governance and we expect trustees to comply […] These requirements apply equally to trustees of master trusts.”