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Press Comment: Crucial changes needed for TPR to avoid another Carillion disaster 


If you’re covering the Work and Pensions Select Committee’s final report on the Carillion collapse please see the following comment from Ian Browne, pensions expert at Old Mutual Wealth

Ian Browne“The Work and Pensions Select Committee is far from subtle in its final report into Carillion’s collapse – it was, in no uncertain terms, a disaster. The report reveals the executive of Carillion did not act in the best interest of their employees and acted against recommendations of best practice.

“The report is equally blunt with its assessment of The Pensions Regulator (TPR). Companies and their directors need to be terrified of the wrath of the TPR, something the committee feel is far from the case currently. Indeed in 13 years of DB scheme regulation, TPR has issued just three Warning Notices relating to its section 231 powers, and has not seen a single case through to imposing a schedule of contributions. So there is some merit to this criticism.

“However, a cultural shift has already begun. In the Defined Benefit White Paper it was suggested TPR be given new powers strong enough to ensure this type of boardroom behaviour doesn’t happen again. The committee report says these powers need to be combined with a shift in attitude by the regulator, to be stricter and more combative with rogue executives.

“The TPR has already begun asserting its authority to ensure that pension schemes remain a priority to all businesses, intervening in a number of merger and acquisitions such as the purchase of FirstGroup and Melrose’s takeover of GKN. It is crucial such a crackdown continues as the fate of thousands of people’s prosperity in retirement rests on such actions.

“Importantly this crackdown also needs to involve current DB schemes and continued scrutiny over directors’ decisions and actions. Pensions are deferred pay and it is crucial that directors view pension schemes as a priority when it comes to funding, not something that is second tier. The disaster created by Carillion’s collapse cannot be repeated.”

For more information contact

Kathleen Gallagher023 8072 629307990

Notes to Editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £95.3 billion in customer investments (as at 31 March 2020).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions; and discretionary fund management.

The business is comprised of two segments: Advice and Wealth Management and Wealth Platforms.

Advice and Wealth Management encompasses the financial advice business, Quilter Financial Planning; the discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

Wealth Platforms includes Old Mutual Wealth UK platform and Quilter International, including AAM Advisory in Singapore.

The Old Mutual Wealth Heritage life assurance business was acquired by ReAssure Group Plc on 2 January 2020.

Since its IPO in June 2018, Quilter plc’s businesses have progressively rebranded to Quilter, as follows: 

  • Quilter Financial Planning (previously Intrinsic)
  • Quilter Private Client Advisers (previously Old Mutual Wealth Private Client Advisers)
  • Quilter Financial Advisers (previously Charles Derby Group)
  • Quilter Financial Adviser School
  • Quilter Cheviot
  • Quilter Investors
  • Old Mutual Wealth (becoming Quilter Investment Platform)
  • Quilter International (previously Old Mutual International)

This press release is for journalists only and should not be relied upon by financial advisers or customers.

Please remember that past performance is not a guide to future performance. The value of investments and the income from them can go down as well as up and investors may not get back any of the amount originally invested. Exchange rate changes may cause the value of overseas investments to rise or fall.

This communication is issued by Quilter plc.  Registered office: Millennium Bridge House, 2 Lambeth Hill, London EC4V 4AJ, United Kingdom. Registered number: 6404270.  Registered in England.