HM Revenue & Customs (HMRC) is committed to combating pension liberation activity. To build on a number of recent changes to existing legislation and processes, HMRC has introduced new legislation relating to the fit and proper status of scheme administrators.

From 1 September 2014, where HMRC believes that the scheme administrator is not a fit and proper person to be the scheme administrator, they can:

  • refuse to register a new pension scheme
  • de-register an existing registered pension scheme

HMRC assumes that all persons appointed as scheme administrators are fit and proper persons unless they hold or obtain information which calls that assumption into question.

When registering a new pension scheme you must now declare the fit and proper status of the scheme administrator.

HMRC has published detailed guidance about the new legislation and the factors taken into account in determining when a scheme administrator is not a fit and proper person.