PART IITHE PENSIONS REGULATOR
Financial support directions
Financial support directionsF1C139
1
This Article applies in relation to an occupational pension scheme other than—
a
a money purchase scheme, or
b
a prescribed scheme or a scheme of a prescribed description.
2
The Regulator may issue a financial support direction under this Article in relation to such a scheme if the Regulator is of the opinion that the employer in relation to the scheme—
a
is a service company, or
b
is insufficiently resourced,
at a time determined by the Regulator which falls within paragraph (9) ( “the relevant time”).
3
A financial support direction in relation to a scheme is a direction which requires the person or persons to whom it is issued to secure—
a
that financial support for the scheme is put in place within the period specified in the direction,
b
that thereafter that financial support or other financial support remains in place while the scheme is in existence, and
c
that the Regulator is notified in writing of prescribed events in respect of the financial support as soon as reasonably practicable after the event occurs.
4
A financial support direction in relation to a scheme may be issued to one or more persons.
5
But the Regulator may issue such a direction to a person only if—
a
the person is at the relevant time a person falling within paragraph (6), and
b
the Regulator is of the opinion that it is reasonable to impose the requirements of the direction on that person.
6
A person falls within this paragraph if the person is—
a
the employer in relation to the scheme,
b
an individual who—
i
is an associate of an individual who is the employer, but
ii
is not an associate of that individual by reason only of being employed by him, or
c
a person, other than an individual, who is connected with or an associate of the employer.
7
The Regulator, when deciding for the purposes of paragraph (5)(b) whether it is reasonable to impose the requirements of a financial support direction on a particular person, must have regard to such matters as the Regulator considers relevant including, where relevant, the following matters—
a
the relationship which the person has or has had with the employer (including, where the employer is a company within the meaning of paragraph (11) of Article 4 of the Insolvency Order, whether the person has or has had control of the employer within the meaning of paragraph (10) of that Article),
b
in the case of a person falling within paragraph (6)(b) or (c), the value of any benefits received directly or indirectly by that person from the employer,
c
any connection or involvement which the person has or has had with the scheme,
d
the financial circumstances of the person, and
e
such other matters as may be prescribed.
8
A financial support direction must identify all the persons to whom the direction is issued.
9
A time falls within this paragraph if it is a time which falls within a prescribed period which ends with the F3giving of a warning notice in respect of the financial support direction in question.
10
For the purposes of paragraph (3), a scheme is in existence until it is wound up.
11
Subject to Article 283 (protected items), no duty to which a person is subject is to be regarded as contravened merely because of any information or opinion contained in a notice given by virtue of paragraph (3)(c).
F212
In this Article “ a warning notice ” means a notice given as mentioned in Article 91(2)(a).