It urges pension trustees, advisers and employees to become whistleblowers and expose activities that increase the risk to members’ benefits, private sector schemes and the Pension Protection Fund.
This includes avoiding section 75 debts, which arise when a company leaves a multi-employer defined benefit pension scheme that is in deficit.
It also warns that pension professionals must remain vigilant for inappropriate transfers from pension schemes in deficit, especially those with weak sponsors.
The regulator also identifies employers that induce members to transfer out of defined benefit pension schemes in exercises that do not meet its guidelines.
These stipulate that trustees and employers must provide scheme members with sufficient information to understand fully the implications of the transfer.
The statement refers to an activity known as trust-busting, which is sometimes called pension liberation, where scheme members are targeted by individuals that claim to be able to release pension assets to spend before retirement.
The regulator said this type of fraud is rare, but “the risk is nonetheless real”.
Tony Hobman, chief executive of the regulator, said it would remain vigilant throughout the recession. “We encourage others to do the same and to contact us if they have concerns,” he said.
Following the statement, the Society of Pension Consultants said it would work directly with the regulator to raise awareness of whistleblowing.
“Mismanagement relating to conflicts of interest and, in some cases, criminal behaviour are unfortunate by-products of a recession,” a spokesperson said.
“Corporate crime is expected to rise and we predict that breaches in conduct will increase this year as the credit crunch continues to bite.”
