Pensions (Amendment) Act, 1996

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Compulsory and voluntary reporting to Board, etc.

38.—The Principal Act is hereby amended by the insertion after section 81 of the following Part:

“PART VIII

Compulsory and Voluntary Reporting to the Board

Definition (Part VIII).

82.—In this Part ‘relevant person’ means, in relation to a scheme, a person who—

(a) is an auditor of the scheme, or

(b) is an actuary of the scheme, or

(c) is a trustee of the scheme, or

(d) is an insurance intermediary (within the meaning of section 2 of the Insurance Act, 1989 ), in relation to the scheme, or

(e) is an investment business firm (within the meaning of section 2 of the Investment Intermediaries Act, 1995 ), and—

(i) has advised on the scheme, or

(ii) has received any payment in relation to the investment of any of the resources of the scheme, or

(f) has been instructed to prepare, or who has prepared, an annual report of the scheme in accordance with section 55, or

(g) has been appointed by the trustees of the scheme to carry out, or who is carrying out, any of the duties of the trustees of the scheme under section 59.

Obligation to disclose misappropriation, etc., of resources of schemes to Board.

83.—(1) Subject to subsection (2), where a relevant person has reasonable cause to believe that a material misappropriation or a fraudulent conversion of the resources of a scheme to which he is a relevant person has occurred, is occurring or is to be attempted, that person shall, as soon as practicable, give to the Board a report in writing of the particulars of the misappropriation or conversion, as the case may be.

(2) Subsection (1) does not apply to any belief formed as a result of information obtained before the passing of the Pensions (Amendment) Act, 1996.

(3) A relevant person shall be guilty of an offence if the person—

(a) fails to comply with subsection (1), or

(b) knowingly or wilfully makes a report under subsection (1) which is incorrect.

(4) Where a relevant person is found guilty of an offence under this section the person shall be liable—

(a) on summary conviction to a fine not exceeding £1,500 or to imprisonment for a term not exceeding one year, or to both,

(b) on conviction on indictment to a fine not exceeding £10,000 or to imprisonment for a term not exceeding two years, or to both.

(5) In a prosecution for an offence under subsection (3) it shall be a defence for the accused to show that the contravention to which the offence relates was attributable to another person failing to comply with subsection (1) and that the accused took such reasonable steps in the circumstances as were open to him to secure the compliance of that other person with that subsection.

(6) In a prosecution for an offence under subsection (3) in relation to a failure to comply with subsection (1) it shall be a defence for the accused to show that he was, in the ordinary scope of professional engagement as a barrister or solicitor, assisting or advising in the preparation of legal proceedings and would not have had reasonable cause to believe that a material misappropriation or a fraudulent conversion of the resources of the scheme had taken place if he had not been so assisting or advising.

Protection of person making report to Board.

84.—Where a person makes a report, whether in writing or otherwise, in good faith to the Board of any matter concerning the state and conduct of a scheme, whether or not that person is a relevant person and whether or not the report is required to be made under section 83(1), no duty to which the person may be subject shall be regarded as contravened and no liability or action shall lie against the person in any court for so doing.

Privilege for Board publishing reports made to it under section 83, etc.

85.—For the purposes of the law of defamation, the publication by the Board of any report made to it—

(a) under section 83(1), or

(b) otherwise of any matter concerning the state and conduct of a scheme,

shall be absolutely privileged.”.