Investigations and Prosecutions : The Regulator’s Perspective

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Investigations and Prosecutions:

The Regulator’s Perspective

30 June 2015Grace Guy

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Focus

• Section 18 – investigations• Section 58A – non-remittance of pension

contributions• Section 3 – prosecutions • Experiences and practical issues

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The Pensions Authority:

• Regulator of company pension schemes and PRSAs

• Functions– Monitor and supervise the Pensions Act – Information and guidance– Policy advice

• Who we regulate– Trustees, employers, RAs, PRSA providers– Approx 62,000 OPS, 733,000 members, €80bn assets

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How the Authority Supervises:Hierarchy of risk priorities

• 1st priority: misappropriation of pension assets or contributions

• 2nd priority: failure to pay benefits due• 3rd priority: inadequate funding of defined

benefits• 4th priority: inappropriate investment• 5th priority: failure to provide prescribed

information to members

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Regulatory Powers

• Information and investigations

• Statutory reliefs from High Ct

• Power to suspend or withdraw approval

• Prosecutions (on the spot fines)

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Regulatory Context

• Mission, strategy, regulatory aim

• Governing legislation

• Resources

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Section 18 - Investigations

• Broad power to obtain information and conduct investigations

• Can enter premises, inspect and take copies of documents and remove records

• Make enquires • Can obtain search warrants if required

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Investigations (continued)…

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Investigations (continued)...

• Be prepared

• Process/housekeeping

• Staff training

• Behaviours

• Interaction with Other Regulators

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Prosecutions

• Section 3 – all breaches of Pensions Act a criminal offence

• Summary (Pensions Authority) • Indictment (DPP)• Penalties

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Prosecutions – Section 58A Strategy

• Section 58A – non-remittance of pension contribution

• Evolvement of strategy from 2008 + • Change in legislation – 2009 – admissibility of

payroll evidence • Formal prosecution policy

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Prosecutions – Practical Issues

• In house function• Separation of investigation and prosecution

functions• Knowledge and experience • District Court interactions• Counsel• Costs

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Results

• 100 plus convictions since 2010• Various fines, community service and

suspended prison sentences imposed• Since April 2008 over €8 million of restored

contributions to pension schemes as a result of Authority activities

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Any Questions