The government has decided to take forward several proposals that it believes will help The Pensions Regulator (TPR) to be ‘clearer, quicker, and tougher’.
The key proposals being taken forward are in the following three areas:

• Strengthening the notifiable events framework: To improve TPR’s and scheme trustees’ ability to monitor corporate transactions and events, and engage with employers where appropriate, the government intends to strengthen the current notifiable events regime. This will include introducing a new requirement for sponsoring employers to produce a ‘declaration of intent’ prior to certain business transactions.​
• New powers for TPR: TPR will be granted a new power to issue civil penalties of up to a maximum of £1million for more serious breaches. In addition, the government has put forward plans to have tougher punishments for those acting recklessly in relation to a pension scheme.
• Anti-avoidance powers: The government will amend the “reasonableness” test so that there is a stronger focus on the loss or risk caused to a scheme by the ‘act’ when assessing the amount to be demanded under a contribution notice. The Financial Support Direction process will be streamlined to make it simpler and quicker, with tightening up of the forms of financial support so that Financial Support Directions will either require a cash payment or impose a form of statutory guarantee in relation to some or all of the sponsoring employer’s liabilities to the scheme.

The consultation response does not provide a firm timeframe for when the proposals will be introduced but the government intends to ‘bring forward legislation as soon as Parliamentary time allows’.