C7Part 1The Pensions Regulator
Financial support directions
C2C1C3C4C6C543C2Financial support directions
1
This section applies in relation to an occupational pension scheme other than—
I2a
a money purchase scheme, or
I1b
a prescribed scheme or a scheme of a prescribed description.
I22
The Regulator may issue a financial support direction under this section 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 subsection (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—
I2a
that financial support for the scheme is put in place within the period specified in the direction,
I2b
that thereafter that financial support or other financial support remains in place while the scheme is in existence, and
I1c
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.
I24
A financial support direction in relation to a scheme may be issued to one or more persons.
I25
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 subsection (6), and
b
the Regulator is of the opinion that it is reasonable to impose the requirements of the direction on that person.
I26
A person falls within this subsection 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 subsection (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—
I2a
the relationship which the person has or has had with the employer (including, where the employer is a company within the meaning of subsection (11) of section 435 of the Insolvency Act 1986 (c. 45), whether the person has or has had control of the employer within the meaning of subsection (10) of that section),
I2b
in the case of a person falling within subsection (6)(b) or (c), the value of any benefits received directly or indirectly by that person from the employer,
I2c
any connection or involvement which the person has or has had with the scheme,
I2d
the financial circumstances of the person, and
e
such other matters as may be prescribed.
I28
A financial support direction must identify all the persons to whom the direction is issued.
I19
A time falls within this subsection if it is a time which falls within a prescribed period which ends with the F2giving of a warning notice in respect of the financial support direction in question.
I210
For the purposes of subsection (3), a scheme is in existence until it is wound up.
I211
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 subsection (3)(c).
This is subject to section 311 (protected items).
F112
In this section “a warning notice” means a notice given as mentioned in section 96(2)(a).
Pt. 1 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 Pt. 1 (as amended (17.7.2008) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2008 (S.I. 2008/1903), regs. 1, 5(2), 13; (10.7.2009) by The Financial Assistance Scheme (Miscellaneous Provisions) Regulations 2009 (S.I. 2009/1851), regs. 1, 5, 18; (2.4.2010) by The Financial Assistance Scheme (Miscellaneous Amendments) Regulations 2010 (S.I. 2010/1149), regs. 1, 5, 15)