UK - Pensions schemes may be duped into adopting unnecessary data protection measures, lawyers warn.
Law firm Laytons said the statutory obligation for companies to notify the government of data held on scheme members has prompted individuals to get businesses to pay for unnecessary services.
It said the agents – often with official sounding names – send confusing messages and use “scare-mongering” tactics to persuade businesses to incur extra compliance costs.
The warning follows the naming and shaming of seven agents which offer such services by the Information Commissioner, which oversees the Data Protection Act 1998.
These are Data Protection Act Registration Service, Data Protection Agency Services, Data Protection Registration Agency, Data Collection Enforcement Agency, Data Registration Agency, DPA Registration Agency and Data Protection Act Registration Agency.
Laytons solicitor Gary Fotios said: “These agents are cashing in on the fear factor.
“While it is true in most instances that businesses processing personal data need to notify the Information Commissioner, notification itself is a relatively painless and inexpensive process.”
Enhanced powers for The Pensions Regulator (TPR) to prosecute and fine company directors who "wilfully or recklessly" put their defined benefit (DB) pension scheme at risk will be hard to enforce, commentators say.
Melrose has pledged to contribute up to £1bn to GKN's pension schemes as part of a final offer to acquire the engineering business.
Existing master trusts will be forced to pay £41,000 when applying for authorisation under the upcoming regime, the government has confirmed.
UPDATE 2 - DWP publishes DB white paper: Stronger powers for TPR, DB chair statements to be introduced
The Pensions Regulator (TPR) will be given the power to fine company bosses who deliberately puts their defined benefit (DB) schemes at risk, the government has confirmed.