Clause 23 - Validation of action in contravention of freezing order
Pensions Bill
10:15 am
Mr Chris Pond (Parliamentary Under-Secretary, Department for Work and Pensions; Gravesham, Labour)
That is a valid point—no pun intended. As I have explained on several occasions, the purpose of the freezing order is to make sure that the members' interests overall are neither enhanced nor diminished during the period for which it is in force. That is why any action is treated as void unless validated by the regulator. The purpose of the clause is to allow the regulator to provide a proportionate and flexible response to circumstances as they arise. Therefore, there may be actions that, as I have explained, do not affect the generality of interests of members of the scheme. In those circumstances, it is sensible for the regulator to have the power to validate those actions.
This is a positive power, whereby the regulator must decide whether the actions would be validated. The hon. Gentleman's anxiety about the provision simply defusing the whole purpose of the freezing order is probably unjustified. The regulator will have a keen eye to see whether the trustees, or anyone else involved in the scheme, are trying to pull a fast one in that way, or are acting unwisely by arguing that certain actions should be validated. We must look to the expertise of the regulator to make sure that that danger is minimised.
Question put and agreed to.
Clause 23 ordered to stand part of the Bill.