Section 28H — Pensions Act 2008: Risk notices

Risk notices 28H 1 The Regulatory Authority (“ the Authority ”) may give a risk notice to the trustees or managers of a relevant Master Trust if the Authority considers that—

a there is an issue of concern in relation to the relevant Master Trust, and b the relevant Master Trust will, or is likely to, cease to meet the conditions for approval under section 28A or 28C if the issue is not resolved.

2 A “risk notice” is a notice that requires the trustees or managers of a relevant Master Trust to submit to the Authority a plan (a “resolution plan”) setting out proposals for resolving the issue of concern.

3 A risk notice must—

a identify the issue of concern;

b specify the date by which the resolution plan is to be submitted.

4 If the Authority is not satisfied that the proposals in a resolution plan are likely to be adequate to resolve the issue of concern, the Authority may give a further notice to the trustees or managers requiring them to submit a revised plan by a date specified in the notice.

5 The trustees or managers must implement the proposals in a resolution plan if the Authority—

a is satisfied that the proposals are likely to be adequate to resolve the issue of concern, and b notifies the trustees or managers accordingly.

6 The Authority may direct the trustees or managers to comply with the requirement imposed by subsection (5).

7 Where the trustees or managers are required by subsection (5) to implement the proposals in a resolution plan, they must—

a submit to the Authority, before the end of a period specified in regulations, a report setting out what progress they are making in implementing the proposals (a “progress report”);

b submit further progress reports to the Authority at intervals specified by the Authority.

8 Resolution plans and progress reports must be provided in the manner and form specified by the Authority.

9 A reference to a resolution plan in subsections (4) to (8) includes a reference to a resolution plan as revised under subsection (4).

10 Regulations may—

a specify information that a risk notice must contain;

b provide that the date referred to in subsection (3)(b) or (4) must fall before the end of a period specified in the regulations.

11 Section 10 of the Pensions Act 1995 (civil penalties) applies to a trustee or manager of a relevant Master Trust who fails to comply with—

a a notice under subsection (1) or (4),

b a direction under subsection (6), or c a requirement imposed by subsection (7).