The Work and Pensions Committee is to look at the lessons that
can be learned from the experience of the collapse of the Norton
pension schemes with the aim of ensuring members of collapsed
pension schemes are better protected and supported in the future.
The assets in the Norton pension schemes were invested in the
Norton Motorcycle Holdings Ltd which went into administration in
2020. The sole trustee of the schemes, Stuart Garner, was also
the sole director of the company. Whistleblowers raised concerns
with the Pensions
Regulator (TPR) in 2013 and independent trustees were
appointed in 2019.
In March 2022, Mr Garner was given a suspended jail sentence for
illegally investing pension schemes’ money into his business. The
independent trustee said in April this
year that it expects to be able to recover a small
proportion of the funds owed through the liquidation and
bankruptcy processes. It is waiting to be able to make a claim to
the Fraud Compensation Fund.
The inquiry will consider the Pensions Regulator’s approach to
preventing loss of pension assets through fraud or dishonesty and
whether there is scope to speed up the process of assessing
eligibility for compensation and making payments. It will also
examine the role played by bodies such as independent trustees,
the Pensions Ombudsman, the Pensions Regulator, the Pension
Protection Fund (in its role as administrator of the Fraud
Compensation Fund).
Chair's comment
Work and Pensions Committee Chair, Rt Hon MP, said:
“The collapse of the Norton pension schemes has caused a huge
amount of worry and financial hardship for the members, who fear
they have lost their pensions and have been left in limbo when it
comes to whether they will receive any compensation at all.
“Our inquiry will look at the lessons that can be learned from
this experience to ensure the right regulatory arrangements are
in place both to protect pension rights better and ensure
compensation is paid promptly when things go wrong.”
Terms of reference
The Committee would welcome submissions covering all or some of
the following questions by Friday 27 October. The Committee would
like to hear from Norton pension scheme members and plans to hold
an event to discuss their experiences. Further information on how
to register interest will be published shortly.
1. Does TPR have the powers it needs to prevent trustees acting
dishonestly and in breach of their trustee duties, leading to the
loss of pension scheme assets, as happened in the Norton case
according to the Pensions Ombudsman;
a) Are the right regulatory arrangements to prevent a similar
case happening again;
2. Could different regulatory arrangements have delivered a
faster resolution of the Norton case, or a similar case;
3. How could co-ordination with other (non-pension) bodies be
improved;
4. How could communications with scheme members of collapsed
pension schemes be improved while at the same time protecting
scheme assets;
5. How could the process for applying to the Fraud Compensation
Fund (FCF) be simplified and sped-up; and
6. What claims might the FCF expect in future and are there
schemes which might be eligible but do not have the support to
make a claim.
