19/05/2010 Pitmans Trustees Limited warn of another ‘nail in the coffin’ for lay trustees

19 May 2010

Pitmans Trustees Limited (PTL) warned today that, under new rules, trustees could face fines up to £500,000 if they fail to meet data protection requirements.

Richard Butcher, Managing Director at PTL, commented, ‘Last month many of the provisions of the Criminal Justice and Immigration Act 2008 (CIJA) came into force. CIJA gives the Information Commissioner far greater powers than before including being able to impose monetary penalties of up to £500,000 in certain circumstances. While these powers are aimed primarily at criminals and unscrupulous individuals who knowingly and recklessly obtain or disclose data, there is an argument that they could be extended to pension scheme trustees.’

Butcher added, ‘This has just made the job of being a pension scheme trustee much riskier. Without good governance schemes could be in the firing line for very significant fines. The impact that this will have on lay trustees will be huge. While these new penalties are only designed to apply in extreme circumstances, the fact that they exist at all will, we think, make it far harder to find people to volunteer. Another, unfortunate, nail in the coffin for lay trustees.’

The timing of the new law coincides with the Pension Regulators tougher approach towards record keeping, thus there is a clear incentive for trustees to review their procedures and policies in this area.

The new fines can also be imposed on directors, managers and secretaries of corporate trustees.

For more information or any other PR enquires please contact:

Kate Boyle
kate@kateboyle-pr.co.uk
07930 442883