Pensions Bill

moved Amendment No. 90Q: 90Q: Clause 32, page 15, line 11, leave out ““the contravention”” The noble Lord said: I shall speak also to the other amendments in this group. Clause 32, to which these amendments relate, enables the Pensions Regulator to issue a third-party compliance notice of the kind that we have just discussed to a person who has contributed to a contravention of an employer duty set out in Clauses 2 to 10. This provision recognises that a third party may bear some responsibility for a failure to meet one of those duties and allows the regulator to issue a notice to that third party requiring that the situation be remedied. Indeed, we were slightly ahead of ourselves in our discussion on the other amendment. These minor amendments would ensure that the provisions reflect the policy intent and that they are consistent with other provisions both in this chapter and the equivalent position in the 2004 Pensions Act. I shall try briefly to explain each of them. Amendment No. 90Q addresses subsection (2), which, as currently drafted, directs the third party to take steps to remedy the contravention or prevent a recurrence of the failure. However, a person who is not bound by a duty cannot remedy a contravention of that duty. The third party can take steps only to remedy or prevent a recurrence of its failure. This drafting amendment means that the third-party compliance notice will not direct a third party to do something that it is not able to do. Amendment No. 90R ensures that the third-party compliance notice states the period within which a third party should stop taking a particular action where that action is contributing to a breach of an employer duty. It will make this clause consistent with Clause 31(3)(a), reflecting the fact that the principle behind both compliance notices and third-party compliance notices is the same, to ensure that failures can be addressed and put right. It will also ensure consistency with the regulator’s existing third-party notice provision in Section 14 of the Pensions Act 2004. Finally, Amendment No. 90S states that a third-party compliance notice can inform the recipient that he may be subject to fixed penalties if the notice is not complied with. This is consistent with Clause 31(3)(d). The power to issue fixed penalty notices to third parties is already provided for in Clause 35. Those who receive compliance notices will have every opportunity to contact the regulator and to seek help before penalties are applied. Notifying the recipient of the possibility of financial penalties ensures that recipients are fully informed of the consequences of failure to comply. I beg to move. On Question, amendment agreed to.