Pensions is a highly technical and regulated area where trustees and employers are increasingly relying on solicitors to advise. As a result of poor investment terms and improving mortality rates, defined benefit schemes are, across the board, in deficit. In the recession, where many companies are becoming insolvent, leaving schemes in deficit and without an employer to make good the shortfall, trustees are more inclined to scrutinise the advice they have received to assess whether this has exposed the scheme.
Areas where solicitors may be exposed to claims include:
- Drafting scheme documents and amendments to schemes – this remains the principal area of exposure for solicitors.
- Conflicts of interest where solicitors act both for the employer of a pension scheme and the trustees.
- Failure to give or to qualify advice.
This article considers the areas of potential exposure and steps that can be taken to reduce the risk of claims. Please click here to read the article that first appeared in Legal Week on 23 July 2009.
This article was written for Law-Now, CMS Cameron McKenna's free online information service. To register for Law-Now, please go to www.law-now.com/law-now/mondaq
Law-Now information is for general purposes and guidance only. The information and opinions expressed in all Law-Now articles are not necessarily comprehensive and do not purport to give professional or legal advice. All Law-Now information relates to circumstances prevailing at the date of its original publication and may not have been updated to reflect subsequent developments.
The original publication date for this article was 04/09/2009.