Arcadia Pension Fund

Lord Blencathra Excerpts

Tuesday 8th December 2020 Lords Chamber

[Baroness Stedman-Scott (Con)]

As always, the noble Baroness raises an important point for people who are in difficult positions. Since January 2018, following its work on the British Steel pension scheme, the Financial Conduct Authority has been working closely with the Pensions Regulator and the Money and Pensions Service to ensure that they monitor pension transfer activity in defined benefit pension schemes that may be subject to increased transfer activity. The three organisations have increased the frequency of their meetings during Covid-19 to consider schemes at risk of higher transfer activity.

[Lord Blencathra (Con)]

My Lords, let us be blunt. Debenhams collapsed after three ruthless vulture funds loaded it with debt and then cleaned it out to the tune of £1.2 billion in dividends. Arcadia was legally robbed by the Greens to the tune of another £1.2 billion in dividends. In the United States, the regulator would have gotten back every cent and they would all be serving life without parole. When are we in this country going to get some proper regulation and legislation to tackle people whose behaviour is de facto criminal, but at the moment technically legally okay?

[Baroness Stedman-Scott (Con)]

I and the whole House absolutely agree that we need to ensure our legislation can deal with those who would plunder pension schemes. That is why we currently have a Pension Schemes Bill going through Parliament. Let me be clear. Where there is mishandling of a pension scheme, the Bill extends the Pensions Regulator’s sanction regime, introducing the power to issue civil penalties of up to £1 million and three new criminal offences, including a new sentence of up to seven years in prison for bosses who run pension schemes into the ground or plunder them to line their own pockets.