Climate change and ESG will be among the regulator's key priorities in 2022
The Pensions Regulator chief executive Charles Counsell has set out the watchdog’s key priorities for 2022 in a blog published today (24 January).
In the article - republished with kind permission on Professional Pensions - Counsell said the regulator would continue its work on defending savers from scams; progressing the defined benefit (DB) funding code and the single code of practice; ensuring that savers get value for money; and continuing its efforts on diversity and inclusion.
Counsell also said TPR would work towards innovations for savers and employers - continuing its work on DB superfunds and also on collective defined contribution (CDC) schemes.
He said the regulator would consult on a new code of practice for the authorisation and supervision of CDC this month - a draft code that will reflect regulations for CDC schemes published by the Department for Work and Pensions and laid before parliament last month.
Counsell said the regulator also wanted trustees to continue to build their capability around climate and ESG.
He said: "We will be monitoring decision-making to ensure it stands up to scrutiny. Our research shows too few schemes are integrating climate change into their decision making, which means investment performance and savers could suffer. We want to see this change."
In his blog, Counsell also reiterated that the regulator would use its new criminal powers responsibly.
He said: "It should by now be crystal clear to all that we don't intend to prosecute behaviour that we consider to be ordinary commercial activity."
He added: "We will investigate and prosecute the most serious examples of intentional or reckless conduct that were already within the scope of our contribution notice power - or would be in scope if the person was connected with the scheme employer.
"What we will not do is overstretch the intent and purpose behind the powers. We will always take an appropriate and proportionate approach."
Above all, Counsell said the regulator wanted the industry to work together to help it achieve its goals.
He said: "We cannot realise our commitments without our regulated community all pulling in the same direction and trusting we are doing the right things as a regulator.
"Last year we published results from our perceptions tracker survey which showed 95% of respondents thought we were trustworthy and 77% thought were fair and evidence based. We want to ensure we continue to build and maintain that confidence and trust so that we can all work successfully together to achieve the best for all savers."
