A former owner of Norton Motorcycles has admitted illegally investing money into the business from three pension schemes for which he was the sole trustee.
Stuart James Garner, of Park Lane, Castle Donington, pleaded guilty to three charges of breaching employer-related investment (ERI) rules by investing more than 5% of assets from each scheme into his business, Norton Motorcycle Holdings Ltd.
Derby Magistrates’ Court heard yesterday (Monday 7 February) how the offences were in relation to three defined contribution schemes: Dominator 2012, Commando 2012 and Donington MC which had a total of 227 scheme members. The investments, which were made in return for preference shares, were made between 2012 and 2013.
Nicola Parish, executive director of frontline regulation at The Pensions Regulator, said: “As a trustee, Stuart Garner failed to comply with restrictions on investments which are designed to protect the funds of pension schemes.
“Trustees have a vital role in protecting the benefits of members and we will take action where that responsibility is abused. Trustees should be clear on when a pension scheme can invest in its sponsoring employer.”
As set out in Regulation 12(2) of the Occupational Pension Schemes (Investment) Regulations 2005, subject to certain exceptions, it is a criminal offence to invest more than 5% of the current market value of scheme resources in ERIs.
Mr Garner is due to appear at 10am on 28 February at Derby Crown Court for sentencing.
