UK - The Pensions Regulator (TPR) sought to reassure companies it would only retrospectively use its new powers in certain situations and would try to avoid hampering market activity or innovation.
A statement said: "We recognise the uncertainty that the retrospective effect of these changes could create, particularly until the new legislation comes into force later this year."
It continued: "Significant checks and balances are already in place, ensuring that our powers are used only when appropriate and that parties have opportunities to challenge our decisions.
"The DWP proposals also build in additional safeguards, which will provide further comfort," the statement concluded.
The National Association of Pension Funds (NAPF) welcomed the clarification.
Joanne Segars, Chief Executive, NAPF, said: "We are pleased the Government has listened to industry calls on the proposed new powers and has undertaken a commitment to provide the industry with greater certainty.
Segars continued: "The guiding principles in this area must be combining innovation with member protection while being mindful of the law of unintended consequences so that regulation does not unduly restrict the potential marketplace."
TPR said new alternative tests that could trigger the issuance of a financial support direction or contribution notice would only be used retrospectively in certain circumstances.
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