Importance of Protecting Pension Holders
Pensions represent the long-term savings and financial security of individuals, often built over decades of contributions. When pension operators fail to act with integrity or misuse client funds, the consequences can be severe, leading to financial harm, loss of trust and significant distress for consumers.
Robust regulatory oversight and enforcement action are essential to deter misconduct, ensure firms prioritise customers’ interests, and maintain confidence in the UK’s pension system. By taking decisive steps against alleged wrongdoing, the Financial Conduct Authority (FCA) reinforces high standards of conduct and protects pension holders from foreseeable harm.
The FCA’s Stance
On 15 April 2026, the FCA announced that it has issued Warning Notices setting out its next steps toward enforcement action against Hartley Pensions Limited (in administration) and an individual associated with the firm. Hartley Pensions, a Self-Invested Personal Pension (SIPP) operator, entered administration in July 2022 at the request of the FCA and its directors due to serious operational, financial and regulatory issues.
The FCA alleges that, during the relevant period (broadly 11 December 2019 to 15 June 2022 for the firm, and up to 11 May 2023 for the individual), Hartley breached the following FCA Principles for Businesses:
- Principle 1 (Integrity);
- Principle 3 (Management and Control); and
- Principle 6 (Customers’ Interests).
The individual is alleged to have acted with a lack of integrity in breach of Individual Conduct Rule 1 by dishonestly using pension funds, making false representations to obtain money for a company they owned, and causing the firm to provide false and misleading information to the FCA repeatedly to conceal the misconduct. These actions are said to have prioritised the individual’s own interests over those of pension holders and failed to manage clear conflicts of interest.
These Warning Notices (published as Statements 26/3 and 26/4) are not final decisions. The recipients have the right to make representations to the Regulatory Decisions Committee, and any further action would follow due process, potentially leading to a Decision Notice and possible referral to the Upper Tribunal.
Key Areas for Compliance with FCA Expectations
The FCA’s actions in this case highlight several critical areas that authorised firms, particularly those handling pensions or client assets, must address to meet regulatory standards:
- Integrity and Honest Dealing
Firms and individuals must act with honesty and integrity at all times, avoiding any false or misleading statements to the regulator or clients
- Customers’ Interests
Firms are required to pay due regard to the interests of customers and treat them fairly, including obtaining proper consent for any movements or investments of pension funds.
- Management and Control
Robust systems and controls must be in place to prevent misconduct, manage conflicts of interest and ensure effective oversight of operations.
- Due Diligence on Transactions
Any withdrawal or investment of client funds must follow appropriate due diligence processes and never occur without explicit client consent.
- Clear Communication
Firms must communicate transparently with clients about investments and any material changes affecting their pensions.
- Cooperation with the Regulator
Firms must provide accurate and timely information in response to FCA enquiries or statutory requirements.
- Ethical Standards
Senior individuals must uphold the high ethical standards expected in financial services and avoid prioritising personal benefit over client outcomes.
These expectations reflect core FCA Handbook requirements, particularly within PRIN and COCON, and form part of the FCA’s broader commitment to protecting consumers and upholding market integrity in the pensions sector.
How Complyport can Help
Complyport offers specialist regulatory compliance and governance services to help firms strengthen their controls and meet FCA expectations, particularly in the pensions and SIPP sector. Our expert team conducts thorough reviews of policies, procedures, and conduct frameworks to identify and mitigate risks of misconduct, conflicts of interest, and failures in client asset protection.
We provide tailored guidance on:
- Implementing robust due diligence processes;
- Ensuring accurate and complete regulatory reporting;
- Embedding strong governance and SM&CR frameworks; and
- Enhancing Consumer Duty outcomes and customer protection.
Our detailed reports and ongoing advisory support enable firms to demonstrate compliance, reduce regulatory risk and protect client interests effectively.
Book a Meeting with a Complyport SME
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FCA Next Steps on Enforcement Against Hartley Pensions
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