Britain sets up pensions watchdog

BRITAIN yesterday launched a new watchdog for the country's 200,000 occupational pension schemes.

Called the Occupational Pensions Regulatory Authority (OPRA), the body was set up in the wake of the pension scandal surrounding publishing mogul the late Robert Maxwell.

The independent watchdog, which will be based in Brighton and starts operations on Monday, was established under the Pensions Act 1995.

OPRA will ensure that occupational schemes, which control some £500 billion of assets, abide by the new rules and are adequately funded to cover members' pensions.

It will have powers to investigate suspected breaches of the law and take legal, disciplinary or regulatory action against employers or trustees where breaches are found.

Under the Pensions Act legislation, it will have the power to investigate trustees, search company offices and seize documents.

Actuaries and auditors will be under a new statutory duty to report clients if they find rules being breached.

In the event of any wrongdoing, OPRA will be able to fine trustees, remove them from their posts, disqualify them and, if necessary, replace them with its own nominees.

It can also wind up schemes and apply for injunctions to prevent the misuse of pension scheme assets.