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Part 2U.K.The Board of the Pension Protection Fund

Modifications etc. (not altering text)

C4Pt. 2 applied in part (24.7.2014) by The Pensions Act 2011 (Transitional, Consequential and Supplementary Provisions) Regulations 2014 (S.I. 2014/1711), regs. 1(1), 42(1), 53, 57 (with regs. 6, 41, 44(1), 47(1), 69(2), 72(1), 76(1)); coming into force immediately after s. 29 of 2011 c. 19 - see S.I. 2014/1683, art. 2

Chapter 1U.K.The Board

Modifications etc. (not altering text)

C5Pt. 2 modified (8.3.2005 for specified purposes, 6.4.2005 in so far as not already in force) by The Pension Protection Fund (Partially Guaranteed Schemes) (Modification) Regulations 2005 (S.I. 2005/277), regs. 1(1), 2-11

C6Pt. 2 modified in part (9.3.2005 for specified purposes, 1.4.2005 for specified purposes, 6.4.2005 in so far as not already in force (except ch. 4)) by The Pension Protection Fund (Multi-employer Schemes) (Modification) Regulations 2005 (S.I. 2005/441), regs. 1, 2-60, 71, 72

C7Pt. 2 applied in part (with modifications) (20.7.2005 for specified purposes, 1.9.2005 for specified purposes, 5.12.2005 for specified purposes) by The Financial Assistance Scheme Regulations 2005 (S.I. 2005/1986), regs. 1(1), 4, Sch. 1

Financial mattersU.K.

113Investment of fundsU.K.

(1)The Board may invest for the purposes of the prudent management of its financial affairs.

(2)When exercising the power conferred by subsection (1) in relation to the Pension Protection Fund, the Board must have regard to—

(a)the interests of persons who are or may become entitled to compensation under the pension compensation provisions (see section 162) or any corresponding provisions in force in Northern Ireland, and

(b)the effect of the exercise of the power on the rate of any levy which may be imposed under section 174 or 175 or any corresponding provision in force in Northern Ireland and the interests which persons have in the rate of any such levy.

(3)When exercising the power conferred by subsection (1) in relation to the Fraud Compensation Fund, the Board must have regard to—

(a)the interests of members of occupational pension schemes in relation to which section 189(1), or any corresponding provision in force in Northern Ireland, applies, and

(b)the effect of the exercise of the power on the level of any levy which may be imposed under section 189 or any corresponding provision in force in Northern Ireland and the interests which persons have in the rate of any such levy.

(4)For the purposes of subsection (1) there must be at least two fund managers.

(5)For this purpose “fund manager” means an individual who or firm which is appointed by the Board to manage the fund maintained under section 173 (the Pension Protection Fund).

(6)The Board must not appoint an individual or firm as a fund manager unless it is satisfied—

(a)in the case of an individual, that the individual has the appropriate knowledge and experience for managing the investments of the Pension Protection Fund, or

(b)in the case of a firm, that arrangements are in place to secure that any individual who will exercise functions which the firm has as fund manager will, at the time he exercises those functions, have the appropriate knowledge and experience for managing the investments of that Fund.

Commencement Information

I1S. 113 in force at 6.4.2005 by S.I. 2005/275, art. 2(7), Sch. Pt. 7

114Investment principlesU.K.

(1)The Board must secure—

(a)that a statement of investment principles is prepared and maintained, and

(b)that the statement is reviewed at such intervals, and on such occasions, as may be prescribed and, if necessary, revised.

(2)In this section “statement of investment principles” means a written statement of the investment principles governing determinations about investments made by or on behalf of the Board.

(3)Before preparing or revising a statement of investment principles, the Board must comply with any prescribed requirements.

(4)A statement of investment principles must be in the prescribed form and cover, amongst other things, the prescribed matters.

Commencement Information

I2S. 114(1)(a)(2) in force at 6.4.2005 by S.I. 2005/275, art. 2(7), Sch. Pt. 7

I3S. 114(1)(b)(3)(4) in force for the purpose only of conferring power to make regulations, orders or rules, as the case may be, 10.2.2005; and for all other purposes at 6.4.2005 in so far as not already in force by S.I. 2005/275, art. 2(3), Sch. Pt. 3

115BorrowingU.K.

(1)The Board may—

(a)borrow from a deposit-taker such sums as it may from time to time require for exercising any of its functions;

(b)give security for any money borrowed by it.

(2)The Board may not borrow [F1under this section] if the effect would be—

(a)to take the aggregate amount outstanding in respect of the principal of sums borrowed by it [F2under this section] over its borrowing limit, or

(b)to increase the amount by which the aggregate amount so outstanding exceeds that limit.

(3)In this section—

(4)The definition of “deposit-taker” in subsection (3) must be read with—

(a)section 22 of the Financial Services and Markets Act 2000,

(b)any relevant order under that section, and

(c)Schedule 2 to that Act.

Textual Amendments

Commencement Information

I4S. 115(1)(2)(4) in force at 8.3.2005 by S.I. 2005/275, art. 2(5), Sch. Pt. 5

I5S. 115(3) in force at 10.2.2005 for specified purposes by S.I. 2005/275, art. 2(1), Sch. Pt. 1

I6S. 115(3) in force at 8.3.2005 in so far as not already in force by S.I. 2005/275, art. 2(5), Sch. Pt. 5

[F5115ALoans made by the Secretary of StateU.K.

(1)The Secretary of State may lend money to the Board for the purposes of the exercise of the Board’s functions under Chapter 4 of this Part and any corresponding provision in force in Northern Ireland.

(2)A loan under this section may be made on such terms (including as to repayment and interest) as the Secretary of State may determine.]

Textual Amendments

116GrantsE+W+S

The Secretary of State may pay the Board out of money provided by Parliament such sums as he may determine towards any of its expenses, other than expenditure which by virtue of section 173(3) or 188(3) is payable out of—

(a)the Pension Protection Fund, or

(b)the Fraud Compensation Fund.

Commencement Information

I7S. 116 in force at 17.12.2004 by S.I. 2004/3350, art. 2, Sch.

117Administration levyE+W+S

(1)Regulations may provide for the imposition of a levy (“administration levy”) in respect of eligible schemes (see section 126) for the purpose of meeting—

(a)expenditure of the Secretary of State relating to the establishment of the Board;

(b)any expenditure of the Secretary of State under section 116.

(2)An administration levy is payable to the Secretary of State by or on behalf of—

(a)the trustees or managers of an eligible scheme, or

(b)any other prescribed person.

(3)An administration levy is payable at the prescribed rate and at prescribed times.

(4)Before prescribing a rate under subsection (3), the Secretary of State must consult the Board.

(5)An amount payable by a person on account of an administration levy is a debt due from him to the Secretary of State.

(6)An amount so payable is recoverable by the Secretary of State or, if he so determines, by the Regulator on his behalf.

(7)Without prejudice to the generality of subsections (1), (5) and (6), regulations under this section may include provision relating to—

(a)the collection and recovery of amounts payable by way of levy under this section;

(b)the circumstances in which any such amount may be waived.

Commencement Information

I8S. 117(1)(3)(7)(a) in force at 10.2.2005 for specified purposes and at 1.4.2005 in so far as not already in force by S.I. 2005/275, art. 2(2), Sch. Pt. 2

I9S. 117(2)(a)(5)(6) in force at 1.4.2005 by S.I. 2005/275, art. 2(6), Sch. Pt. 6

I10S. 117(4) in force at 10.2.2005 by S.I. 2005/275, art. 2(4), Sch. Pt. 4

I11S. 117(7)(b) in force at 1.1.2007 for specified purposes and 1.3.2007 in so far as not already in force by S.I. 2006/2272, art. 2(6)

Prospective

118FeesU.K.

(1)Regulations may authorise the Board—

(a)to charge prescribed fees;

(b)to charge fees sufficient to meet prescribed costs.

(2)Regulations under subsection (1) may prescribe, or authorise the Board to determine, the time at which any fee is due.

(3)Any fee which is owed to the Board by virtue of regulations under this section may be recovered as a debt due to the Board.