• Guy Opperman steps down – for a day
• Restoring trust in audit and corporate governance – the FRC sets out its position
• DWP proposes new Pensions Ombudsman

Guy Opperman steps down – for a day

Amongst the ministerial carnage last week as Conservative MPs took drastic action to bring Boris Johnson’s premiership to an end, was the announcement last Thursday morning that Guy Opperman MP had also stepped down as pensions minister.  However, it seemed only for a day as he was reappointed, on Friday afternoon in what seems to be a caretaker role, pending the formation of the post-Johnson Government later this summer.

Mr Opperman has had a record-breaking run at the DWP, narrowly eclipsing Sir Steve Webb in his length of tenure.  And just like his predecessor, he achieved much (including significant progress on climate change, pensions dashboards and collective defined contribution schemes).  However, he has left a significant agenda of unfinished business.  This includes policy on auto-enrolment, DB superfunds and the need to resolve the state pension payment errors scandal.  The landmark Pension Schemes Act 2021 is also not yet fully delivered.

No doubt he is fully aware of this, as in his tweet, following his reappointment, he listed a very full agenda of things he is intending to do.

Comment

So, for the time being, it seems to be a return to business as usual at the DWP.  Hopefully, this will mean that matters which would otherwise be delayed, will go ahead in a timely manner.  For example, we are still waiting for the DWP to consult on the scheme funding regulations and to lay the final version of the notifiable events regulations.  Maybe we will see both before the summer recess which starts next Thursday.

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Restoring trust in audit and corporate governance – the FRC sets out its position

Following the publication of the Government’s response to its White Paper on a number of reforms to the UK’s audit and corporate governance regime (see Pensions Bulletin 2022/21), the Financial Reporting Council has published a Position Paper setting out its next steps as it transitions into the Audit, Reporting and Governance Authority (ARGA).

In particular, the FRC says that it intends to produce a revised UK Corporate Governance Code to apply to periods commencing on or after 1 January 2024.  Consultation on the proposed new Code and supporting material is scheduled to take place in Q1 2023.

There is also a section on actuarial regulation which lists the work that needs to be completed in order that ARGA can take up its actuarial regulation powers that will be assigned to it under the forthcoming Audit Reform Bill.  However, no dates are even hinted at and so the timescales over which this work will be completed remain unclear.

Comment

The FRC promises a “rigorous due process” as it tackles this workload, including public consultation and stakeholder outreach, including how its actions “supports the public interest”.  Whilst this is welcome there is a danger that the FRC will feel empowered, through successive Government reports and the Bill to come, to pursue its proposed actions no matter what those it regulates have to say.

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DWP proposes new Pensions Ombudsman

The DWP is proposing that Dominic Harris, currently a partner in the pensions team at CMS, should take up the role of Pensions Ombudsman and Pension Protection Fund Ombudsman when Anthony Arter steps down at the end of July.  A pre-appointment hearing by the Work and Pensions Select Committee was held on 13 July following which the appointment should be finalised.

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