FT/PEN/0025/0023 - [2025] UKFTT 01328 (GRC)

The maximum potential penalty could have been £50,000. The penalty imposed was considerably less than this.

The Respondent applied the principles of the Monetary Penalties Policy (“MPP”) which set out how the Respondent will use its powers to impose monetary penalties under the pensions legislation. The appropriate band for a failure to undertake a DVFM assessment was determined to be Band 2, i.e. £0-£25,000 for a corporate entity.

The Respondent applied the reduction which took into account that there were fewer than 5 members: a reduction in the starting point to £12,500. As the number of members had already been taken into account there are no grounds for a further reduction.

The Respondent took into account that the Appellant is liable for the penalty which will not be paid from scheme assets. This means that the membership will not suffer from the imposition of a penalty.

The Respondent took a fair approach notwithstanding that the Respondent has concerns that it did not react particularly promptly.

The role of trustee is a fiduciary one. The responsibility of managing the funds that will provide for other people’s security in retirement is not to be underestimated and should be taken extremely seriously by those in such a position of trust. This was a complete, rather than a partial failure to comply with the annual DVFM assessment requirement for the relevant scheme year ending in 2023.

The penalty of £12,500 was fair and proportionate and should be upheld.