Pensions Act 2004

13 Improvement notices E+W+S

(1) If the Regulator is of the opinion that a person—

(a) is contravening one or more provisions of the pensions legislation, or

(b) has contravened one or more of those provisions in circumstances that make it likely that the contravention will continue or be repeated,

it may issue a notice (an “improvement notice”) to that person directing him to take, or refrain from taking, such steps as are specified in the notice in order to remedy or prevent a recurrence of the contravention.

(2) An improvement notice must—

(a) state that the Regulator is of that opinion and specify the provision or provisions of the pensions legislation in question,

(b) contain a statement of the matters which it is asserted constitute the contravention and of the evidence on which that opinion is based, and

(c) in respect of each step specified in the notice, state the period (being a period of not less than 21 days beginning with the date of the notice) within which it must be complied with.

(3) Directions in an improvement notice—

(a) may be framed to any extent by reference to a code of practice issued by the Regulator under section 90 [F1 or 90A] , and

(b) may be framed so as to afford the person to whom the notice is issued a choice between different ways of remedying or preventing the recurrence of the contravention.

(4) Directions in an improvement notice may be expressed to be conditional on compliance by a third party with a specified direction, or specified directions, contained in a notice under section 14 (third party notices).

(5) An improvement notice may direct the person to whom it is issued to inform the Regulator, within such period as may be specified in the notice, of how he has complied, or is complying, with the notice.

(6) Where a contravention of a provision of the pensions legislation consists of a failure to take action within a time limit, for the purposes of this section the contravention continues until such time as the action is taken.

(7) In this section “pensions legislation” means any enactment contained in or made by virtue of [F2 any of the following]—

(a) the Pension Schemes Act 1993 (c. 48),

(b) Part 1 of the Pensions Act 1995 (c. 26), other than sections 62 to 66A of that Act (equal treatment),

(c) Part 1 or section 33 of the Welfare Reform and Pensions Act 1999 (c. 30), F3 ...

(d) this Act F4 ...

[F5 (e) section 5(4) (pension board: conflicts of interest and representation), 6 (pension board: information), 14 (information about benefits) or 16 (records) of the Public Service Pensions Act 2013], F6 ...

[F7 (f) paragraph 2 of Schedule 18 to the Pensions Act 2014 (c.19)], F8 ...

[F9 (g) the Pension Schemes Act 2015],

[F10 (h) Part 1 of the Pension Schemes Act 2017],

[F11 (i) Part 1 of the Pension Schemes Act 2021.]

(8) If the trustees or managers of an occupational or personal pension scheme fail to comply with an improvement notice issued to them, section 10 of the Pensions Act 1995 (civil penalties) applies to any trustee or manager who has failed to take all reasonable steps to secure compliance.

(9) That section also applies to any other person who, without reasonable excuse, fails to comply with an improvement notice issued to him.

Textual Amendments

F1 Words in s. 13(3)(a) inserted (1.4.2015) by Public Service Pensions Act 2013 (c. 25), s. 41(2), Sch. 4 para. 3(2) (with Sch. 11 para. 8); S.I. 2015/4, art. 4(1)(b)

F2 Words in s. 13(7) inserted (5.9.2018 for specified purposes, 1.10.2018 so far as not already in force) by Pension Schemes Act 2017 (c. 17), s. 44(2), Sch. 3 para. 6(a); S.I. 2018/965, reg. 2

F3 Word in s. 13(7)(c) repealed (1.4.2015) by Public Service Pensions Act 2013 (c. 25), s. 41(2), Sch. 4 para. 3(3)(a) (with Sch. 11 para. 8); S.I. 2015/4, art. 4(1)(b)

F4 Word in s. 13(7)(d) omitted (6.4.2015) by virtue of The Occupational Pension Schemes (Charges and Governance) Regulations 2015 (S.I. 2015/879), regs. 1(2), 25(a)

F5 S. 13(7)(e) and word inserted (1.4.2015) by Public Service Pensions Act 2013 (c. 25), s. 41(2), Sch. 4 para. 3(3)(b) (with Sch. 11 para. 8); S.I. 2015/4, art. 4(1)(b)

F6 Word in s. 13(7)(e) omitted (6.4.2015) by virtue of Pension Schemes Act 2015 (c. 8), s. 89(3)(a), Sch. 2 para. 24(a) (with s. 87)

F7 S. 13(7)(f) and word inserted (6.4.2015) by The Occupational Pension Schemes (Charges and Governance) Regulations 2015 (S.I. 2015/879), regs. 1(2), 25(b)

F8 Word in s. 13(7)(f) omitted (5.9.2018 for specified purposes, 1.10.2018 so far as not already in force) by virtue of Pension Schemes Act 2017 (c. 17), s. 44(2), Sch. 3 para. 6(b); S.I. 2018/965, reg. 2

F9 S. 13(7)(g) and word inserted (6.4.2015) by Pension Schemes Act 2015 (c. 8), s. 89(3)(a), Sch. 2 para. 24(b) (with s. 87)

F10 S. 13(7)(h) inserted (5.9.2018 for specified purposes, 1.10.2018 so far as not already in force) by Pension Schemes Act 2017 (c. 17), s. 44(2), Sch. 3 para. 6(c); S.I. 2018/965, reg. 2

F11 S. 13(7)(i) inserted (11.2.2021 for specified purposes, 1.8.2022 in so far as not already in force) by Pension Schemes Act 2021 (c. 1), s. 131(1)(3)(a), Sch. 3 para. 12; S.I. 2022/721, regs. 1(2), 3(a)

Modifications etc. (not altering text)

C1 S. 13(7) modified (30.12.2005) by The Occupational Pension Schemes (Regulatory Own Funds) Regulations 2005 (S.I. 2005/3380), regs. 1, 13

Commencement Information

I1 S. 13 in force at 6.4.2005 by S.I. 2005/275, art. 2(7), Sch. Pt. 7