Regulator publishes guidance on employer-related investments

 The Regulator has published guidance reminding trustees and employers about the restrictions on using pension scheme funds for employer-related investments and the risk of criminal prosecution. 

The guidance clarifies that, aside from certain exceptions, no more than 5 per cent of the current market value of pension scheme assets may, at any time, be invested in employer-related investments, and no assets may be loaned to the employer. Breach of the restrictions is a criminal offence.

The Regulator has highlighted recent examples of rule breaches and emphasises that trustees should be in no doubt that where the Regulator sees scheme funds being illegally invested, it will take firm action, which could result in a prison term. The guidance sets out the restrictions and the responsibilities that apply and trustees are urged to read and understand it.