Section 45: Meaning of “financial support”
176.This sets out the types of arrangement which may be put in place in order to comply with a direction to secure financial support for the scheme. Subsection (1) provides that such arrangements must be approved by the Regulator.
177.Subsection (2) sets out that a financial support arrangement can be:
the application of joint and several liability for the whole part of the employer’s pension liabilities across the whole company group, so that the debt on the employer could be claimed against any member of the group; or
an agreement by the holding company of the group, which meets prescribed requirements (the prescribed requirements will provide that the holding company of the group must be located in the EU) to meet the whole or part of the employer’s pension liabilities; or
the provision of an arrangement which meets prescribed requirements and whereby additional financial resources are provided to the scheme (for example an appropriate bank guarantee or other arrangement); or
such other arrangements as may be prescribed.
178.Subsection (3) provides that the Regulator cannot issue a notice under subsection (1) unless it is satisfied that the arrangement is or arrangements are reasonable in the circumstances. Subsection (4) defines the meaning of “employer’s pension liabilities”.
