Wealth Options Trustees Limited (WOTL) has agreed to retire and cease acting as trustee to small self-administered pension schemes (SSAPs) following legal action by the Irish Pensions Authority.

In June 2021, the Pensions Authority applied to the High Court to remove WOTL as the professional trustee of seven sample SSAPs, which invested in Dolphin loan notes issued by MUT 116 Limited, and replace it with Pillar 2 Pension Trustees.

The authority has suspended its legal proceedings indefinitely on the basis that WOTL has agreed to retire and cease to act as trustee of the seven SSAPs referred to in the High Court application and co-operate with the appointment of a replacement professional trustee firm.

WOTL has also agreed to retire and cease to act as trustee of all other SSAPs for which its acts as a professional trustee and co-operate in the appointment of a different professional trustee.

Furthermore, WOTL or its current directors will not accept any new appointment to act as a trustee of a pension scheme, including SSAPs, for five years.

It will also communicate with affected scheme members and employers to inform them of the process of it ceasing to act as the trustee for their scheme and be replaced by another professional trustee.

Pillar 2 has stated that it is willing to act as replacement trustee for any scheme that WOTL ceases to be trustee of, where requested by the relevant employer/persons under scheme rules.

The authority will oversee the transfer of trusteeship to Pillar 2 to ensure that there is minimal disruption to members.

WOTL has agreed that it will do its best in ensuring that transfers are carried out with minimal disruption, particularly in ensuring that members do not bear any of the costs relating to the transfers.

For schemes transferring to a trusteeship other than Pillar 2, WOTL has committed to do so with minimal disruption and cost to scheme members.

“It is a fundamental trustee responsibility to avoid circumstances where a trustee’s personal/financial interests can cause a potential conflict of interest with the member’s interests,” commented Pensions Authority head of supervision and enforcement, Grace Guy.

“This applies to all pension scheme trustees including trustees of SSAPs and to all investments including member directed investment.

"Trustees should consider these matters carefully and take whatever steps are necessary to ensure members’ interests are not compromised, recognising that there are real consequences if they do not do so.

"The Pensions Authority believes that the resolution achieved today is, in these circumstances, the best outcome for members by avoiding protracted legal proceedings, minimising costs and reducing the risk of a disorderly transfer process.

“The authority will continue to oversee and investigate pension scheme trustees and will take enforcement action when it is appropriate to do so’’.

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