New Pension Rules 'Will Trigger Rethink Over Dividends'

By Martin Croucher (August 31, 2021, 2:30 PM BST) -- The largest businesses in Britain could be forced to rein in payouts to shareholders amid fears that the country's retirement savings watchdog could launch legal action against them, a consultancy has warned.

Lane Clark & Peacock LLP said on Monday that companies with defined benefit schemes could face "more frequent regulatory intervention," which could make them think twice about paying out large dividends.

The Pensions Regulator will gain a new mandate from Oct. 1, which will allow it to investigate and fine company bosses for making excessive dividend payouts or remuneration for directors, under the Pensions Schemes Act.

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