The Pensions Regulator (the Regulator) has published its response to the December 2008 consultation on the “material detriment” test draft code of practice. The code has been finalised and is awaiting Parliamentary approval (see above).
In its response the Regulator comments that it does not intend to issue Contribution Notices (CNs) under the new material detriment test in “routine business transactions”. To provide further reassurance the Regulator intends to issue more guidance at the same time as the code receiving Parliamentary approval.
In the meantime the Regulator has issued draft illustrative examples of transactions/circumstances where it will not use its new powers. The table sets out these examples
The Regulator cautions that the above examples look at situations in isolation and that some of the situations taken together, with other acts or failures to act, may constitute a series which could be materially detrimental.