Part 1The Pensions Regulator

Financial support directions

46Financial support directions: clearance statements

1

An application may be made to the Regulator under this section for the issue of a clearance statement within paragraph (a), (b) or (c) of subsection (2) in relation to circumstances described in the application and relating to an occupational pension scheme.

2

A clearance statement is a statement, made by the Regulator, that in its opinion in the circumstances described in the application—

a

the employer in relation to the scheme would not be a service company for the purposes of section 43,

b

the employer in relation to the scheme would not be insufficiently resourced for the purposes of that section, or

c

it would not be reasonable to impose the requirements of a financial support direction, in relation to the scheme, on the applicant.

3

Where an application is made under this section, the Regulator—

a

may request further information from the applicant;

b

may invite the applicant to amend the application to modify the circumstances described.

4

Where an application is made under this section, the Regulator must as soon as reasonably practicable—

a

determine whether to issue the clearance statement, and

b

where it determines to do so, issue the statement.

5

A clearance statement issued under this section binds the Regulator in relation to the exercise of the power to issue a financial support direction under section 43 in relation to the scheme to the applicant unless—

a

the circumstances in relation to which the exercise of the power under that section arises are not the same as the circumstances described in the application, and

b

the difference in those circumstances is material to the exercise of the power.