Pensions: what's new this week - 12 September 2022
12 September 2022
Welcome to your weekly update from the Allen & Overy Pensions team, covering all the latest legal and regulatory developments in the world of workplace pensions.
This week we cover topics including: PASA guidance: administrator exit agreements; HMRC guidance: starting a new business relationship.
The Pensions Administration Standards Association (PASA) has published guidance on the provisions schemes should have in place for the end of an administration contract, to ensure a smooth transfer to a new provider. This aims to address key problems identified by PASA through its experience on administrator handovers: delays, unreasonable charges and deterioration in service. The guidance notes that an exit agreement should clarify: the terms on exit, including service level agreements for provision of information and data and stated responsibilities; the scope of services covered; and fees, including any additional out of scope charges and the charge rates applied. The guidance includes template exit clauses and PASA’s updated Code of Conduct on Administration Provider Transfers; the updates will apply from 1 January 2023. PASA encourages trustees to review the terms in their current administration contracts and put exit terms in place if appropriate, even if they do not anticipate being involved in an imminent transfer of services.
HMRC has updated its trusts guidance to include sections on providing information when starting new business relationships. Under new requirements, ‘relevant persons’ (organisations working in a professional capacity that must carry out due diligence checks under anti-money laundering regulations, including financial institutions and legal professionals) must ask for proof of a trust’s registration with HMRC before beginning a new business relationship. The updated guidance gives trustees details of how to obtain copies of the necessary documents from HMRC when requested.