HL UK Pensions Law Digest 12 February 2026

Welcome to our latest update, in which we cover:

Targeted support: Regulated Activities Order

• Legislation to create the new regulated activity of providing targeted support;

Judge criticises the Pensions Regulator for mis-stating the law

• A First Tier Tribunal judge has raised concerns about the approach of the Pensions Regulator (TPR) to an auto-enrolment appeal;

The Pension Protection Fund: levy ceiling for 2026/27 has been published

• The Order increasing the Pension Protection Fund (PPF) levy ceiling has been laid before Parliament;

The Financial Reporting Council: consultation on updated Technical Actuarial Standard 310 on collective money purchase schemes

• The Financial Reporting Council (FRC) has published a revised Technical Actuarial Standard 310, updated to cover unconnected multi-employer collective money purchase schemes.

Targeted support: Regulated Activities Order

An Order has been made to create a new regulated activity of providing targeted support from 6 April 2026 (The Financial Services and Markets Act 2000 (Regulated Activities) (Providing Targeted Support) (Amendment) Order 2026/74).

This follows the consultation response issued by HM Treasury in December 2025 on enabling the provision of targeted support to individuals for whom taking financial advice may not be possible or appropriate. As a reminder:

• Firms will require authorisation by the Financial Conduct Authority (FCA) or the Prudential Regulation Authority (PRA) to provide targeted support. Providing targeted support will be a new specified activity and will be different from “advising on investments”.
• The targeted support regime will apply from early April 2026, with firms able to apply for authorisation from March 2026. The FCA has opened its Pre-Application Support Service (PASS) for firms planning to apply for permission to provide targeted support.
• Authorised firms may provide targeted support with investments and pensions, by making recommendations designed for groups of consumers with similar characteristics and circumstances.
• Alongside targeted support recommendations, consumers must also be given information about the nature and limitations of the service.
• A joint statement by the FCA and the Information Commissioner’s Office (ICO) explains how firms can comply with data protection requirements when delivering targeted support. Secondary legislation will allow workplace pension providers to send targeted support communications to members who have not opted out of direct marketing.
• The government intends to review the operation of targeted support alongside wider policy developments, including guided retirement.

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First Tier Tribunal judge criticises the Pensions Regulator's approach to auto-enrolment appeal

In 4 Wheeler Ltd v the Pensions Regulator, a First Tier Tribunal Judge criticised the Pensions Regulator (TPR)’s approach to an appeal by an employer against certain fixed penalty notices and escalating penalty notices, issued in respect of auto-enrolment breaches. The central issue was whether the employer had been "issued" with the notices; the breaches themselves were not in dispute.

The Judge struck out the employer's appeal on jurisdictional grounds, but went on to raise two specific concerns about TPR's conduct in the case.

TPR mis-stated the applicable law

Firstly, he noted that the "evident zeal" of TPR to enforce auto-enrolment obligations "must not be allowed to override its obligation as a statutory regulator to act fairly and with due regard to applicable law" – especially given that a large proportion of employers who are subject to enforcement action are "small, unrepresented organisations with very limited resources and little if any grasp of the complex legal framework which applies".

The Judge asserted that three of the five core submissions advanced by TPR were "simply wrong", with a fourth being "unhelpful". He noted that the errors could be explained by "stretched resources, pressure of work and similar factors". However, he urged TPR to urgently review its standard pleadings and submissions "to ensure that the curse of 'cut and paste'…does not result in further indefensible arguments being advanced in future which might be seen as prejudicing the fair and proper administration of justice".

TPR should discourage appellants from agreeing to a paper based appeal when running fact-based appeals

Secondly, the Judge believed that TPR, acting as a fair-minded regulator, should discourage appellants from running fact-based appeals based on written representations alone. He thought this particularly important where an appeal turns on disputes about service (as 4 Wheeler did) because case law stresses the relative importance of evaluating evidence in these cases. The Judge recommended that, "at the very least", relevant TPR documentation should warn that an appellant consenting to a "paper determination" may be disadvantaged by failing to take the opportunity to attend a hearing, at which they could explain all of the facts and circumstances and answer any questions from the Tribunal.

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The Pension Protection Fund levy ceiling for 2026/27 financial year has now been published

On 2 February, the annual Order increasing the Pension Protection Fund (PPF) levy ceiling was laid before Parliament. The levy ceiling is the maximum amount of levy which can be charged and is increased annually to reflect the increase in the general level of earnings. The Order increases the PPF levy ceiling from £1,403,184,443 to £1,473,343,665.61 for the financial year beginning on 1 April 2026.

However, as noted in our Digest of 19 November, the PPF is, in any event, proposing to maintain a zero levy for 2026/27 for conventional schemes, provided that there is sufficient legislative progress with the levy provisions in the Pension Schemes Bill. The new ceiling is therefore likely to be of no practical effect.

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The Financial Reporting Council publishes consultation on updated technical actuarial standards for collective money purchase pensions

The Financial Reporting Council (FRC) has published a consultation paper on an updated Technical Actuarial Standard 310 (TAS 310).

The proposed changes to TAS 310 deal primarily with technical actuarial work in relation to the introduction of unconnected multi-employer collective money purchase schemes (CDC UMESs). Legislation implementing the CDC UMES regime and a revised Pensions Regulator Code of Practice will come into force on 31 July 2026. More detail on the proposed CDC UMES regime can be found in our November Digest.

The consultation covers areas where actuarial judgement may be applied or actuarial advice is given, particularly in relation to actuarial equivalence between contributions and benefits.

The consultation closes on 23 March 2026.

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Authored by Jill Clucas and Susanne Wilkins.