The Pensions Regulator

Prohibition of trustees

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Prohibition orders

A prohibition order is an order made by the Pensions Regulator, which has the effect of preventing a trustee from acting as a trustee of:

• a particular scheme;
• a class of schemes; or
• all pension schemes.

What is the effect of a prohibition order?

A trustee affected by a prohibition order will be notified by the regulator, and will be:

• placed on the register of prohibited trustees;
• removed from the trusteeship of all the schemes covered by the order; and
• removed from the register of independent trustees.

Where a trustee has applied for entry to the register of independent trustees, the application will be declined.

Where is this power set out?

This power is set out in Section 3 of the Pensions Act 1995, as amended by the Pensions Act 2004.

Who can be affected by a prohibition order?

Any trustee of a pension scheme can be affected by a prohibition order. Prohibition orders can apply to corporate trustees and trust corporations as well as to individual trustees, and can apply both to member-nominated trustees and to employer-appointed trustees.

What happens if a person who is prohibited acts as a trustee?

If any person or company who is prohibited from being a trustee continues or recommences to act as a trustee of any scheme from which they are prohibited (as defined in the prohibition order), they commit a criminal offence. On conviction they could be liable to a fine and/or a prison sentence, and would get a criminal record.

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