Part 2The Board of the Pension Protection Fund
Chapter 3Pension protection
Restrictions on schemes during the assessment period
134Directions
(1)
This section applies where there is an assessment period in relation to an eligible scheme.
(2)
With a view to ensuring that the scheme’s protected liabilities do not exceed its assets or, if they do exceed its assets, that the excess is kept to a minimum, the Board may give a relevant person in relation to the scheme directions regarding the exercise during that period of his powers in respect of—
(a)
the investment of the scheme’s assets,
(b)
the incurring of expenditure,
(c)
the instigation or conduct of legal proceedings, and
(d)
such other matters as may be prescribed.
(3)
In subsection (2)—
(a)
“relevant person” in relation to a scheme means—
(i)
the trustees or managers of the scheme,
(ii)
the employer in relation to the scheme, or
(iii)
such other persons as may be prescribed, and
(b)
the reference to the assets of the scheme is a reference to those assets excluding any assets representing the value of any rights in respect of money purchase benefits under the scheme rules.
(4)
The Board may revoke or vary any direction under this section.
(5)
Where a direction under this section given to the trustees or managers of a scheme is not complied with, section 10 of the Pensions Act 1995 (c. 26) (civil penalties) applies to any such trustee or manager who has failed to take all reasonable steps to secure compliance with the direction.
(6)
That section also applies to any other person who, without reasonable excuse, fails to comply with a direction given to him under this section.