Anyone involved in the running of a pension scheme has a duty to report breaches of legislation, including (but not limited to) trustees, advisers, administrators and sponsoring employers. Such breaches could include, for example, the misappropriation of funds or making an investment decision without taking appropriate advice. This duty is often referred to as the requirement to “whistle-blow”.

If there is “reasonable cause to believe” that a breach has occurred which is “likely to be of material significance” to The Pensions Regulator then a report should be made “as soon as reasonably practicable”. Not every breach has to be reported, but it is possible that failure to report may lead to a civil offence.

Trustees should consider keeping a log of any breaches that are not reported, with the rationale for not reporting. A build-up of similar unreported breaches may itself be reportable.