7.—(1) Where any fraud compensation levy is payable, the Board shall waive payment of an amount payable by way of such levy if the trustees or managers of the scheme confirm in writing to the Board—
(a)that—
(i)there is no employer in relation to the scheme, or
(ii)the employer is insolvent; and
(b)in the case of a scheme in which all the benefits that may be provided (other than death benefits) are money purchase benefits, there are insufficient unallocated assets in the scheme to meet its liabilities in respect of the payment of the levy in full.
(2) For the purposes of paragraph (1), an employer is insolvent if an insolvency event, within the meaning of section 121 of the Act (insolvency events), has occurred in relation to him.
(3) Paragraph (1) shall not apply in the case of a stakeholder pension scheme.