In January 2018, The Pensions Regulator (TPR) concluded that a series of factors during the collapse of the high street retailer, were materially detrimental to the various pension schemes operated at the retailer. These factors included the acquisition of BHS management decisions, the appointment of inexperienced board members, the implementation of an inadequate business plan, and the way in which money was distributed to Dominic Chappell, the director and majority shareholder of the organisation that purchased BHS as well as Mr Chappell’s, advisers, directors and family members.
In February 2018, Mr Chappell was sentenced at Barkingside Magistrates Court and fined £87,170 for failing to provide information to The Pensions Regulator (TPR) during the sale of the British retail organisation.
In December 2018, Chappell was ordered to pay more than £124,000 for failing to hand over information to the TPR after refusing to provide information to the TPR under section 72 of the pensions act 2004, this followed the TPR’s investigation into the sale and then collapse of BHS. He also failed to provide information about a possible unauthorised disclosure of restricted material.
Dominic Chappell has also recently been ordered by TPR, to pay over £9.5 million into the various BHS Pension schemes. On Tuesday 14 January 2020, TPR issued contribution notices against Mr Chappell which included £9,447,555 to be paid to the BHS Pension Scheme, and £95,430 to the BHS Senior Management Scheme. The issuing of the two contribution notices concludes the end of TPR’s anti-avoidance enforcement against Mr Chappell.
The executive director of frontline regulation at TPR, Nicola Parish, commented that: “We are pleased that the decision to issue two contribution notices to pay money into the BHS pension schemes stands”
“This case illustrates how TPR is willing to pursue a case through the courts to seek redress for pension savers. It illustrates the situations our anti-avoidance powers were designed to meet and which allow us to protect the retirement incomes that savers deserve.”
