Seven case investigations into scheme record-keeping have been opened by The Pensions Regulator (TPR) following its thematic review.

TPR said in its report that although on the whole it found good practice in the industry, it said that there were areas that "caused concern and posed risks" to schemes and the payment of members' benefits.

Schemes with lower levels of engagement with their advisers, which tended to be smaller schemes, were less able to demonstrate that they had effectively tackled record-keeping challenges, TPR said.

TPR executive director for defined contribution (DC), governance and administration Andrew Warwick-Thompson said: "We've opened seven case investigations as a result of our first major review of record-keeping, involving DC and defined benefit (DB) schemes, which may ultimately lead to enforcement action.

"Trustees and administrators should really be treating the maintenance of complete and accurate data as business as usual – it underpins the running of the entire scheme and it is only with the right records that they can ensure the right benefits are being paid to the right members at the right time."

The review was launched to identify whether schemes had met the targets the regulator set for common data, the actions schemes were taking to manage and mitigate errors and gaps in data, and how schemes were managing data as part of their internal controls frameworks.

TPR said that scheme data remained an "ever-important" issue.

First published 01.04.2014

monique_simpson@wilmington.co.uk