Survey Shows UK Industry Watchdog Lacks Accountability

(December 8, 2010) — A new survey by the National Association of Pension Funds (NAPF) has shown that a large majority of respondents believe the industry watchdog should be more accountable to trustees.

“We think the Regulator needs to engage more with those it regulates,” NAPF Chief Executive Joanne Segars said in a statement. “It should take a less prescriptive approach to regulation to ensure good quality occupational pension schemes thrive,” she said, adding that she feels these findings send a strong message to the government about the Regulator’s accountability.

Trustees and scheme managers asserted the Pensions Regulator should better promote high-quality workplace pensions. Meanwhile, 61% of respondents said they thought the regulator needed a new statutory objective to ensure longevity of schemes.

When asked about their biggest challenge in 2011, about a quarter of surveyed pension officials (23%) said the switch to a new private sector pension indexation was the biggest challenge; 19% cited the implementation of pensions tax changes; 18% said auto-enrolment; and 8% mentioned data cleansing. An additional 31% cited other challenges, including the implementation of the potential public sector pension reform and funding deficits.

The NAPF study conflicts with a previous report from January by the Better Regulation Executive and National Audit Office, which found the regulator’s stakeholders regard the Pensions Regulator as a “transparent and listening” organization. Yet, NAPF’s Segars stated that while she believed the regulator was successful in certain areas, the firm needs to take a broader, longer-term view.