Regulation 6 Provision for Liabilities

(1)

This regulation applies where a direction is given by the Secretary of State under regulation 3 which contains an instruction to convert a financial asset or gilt to cash or to transfer a gilt to the Treasury Solicitor or specified nominee.

(2)

The Secretary of State must secure that the trustee company is able to meet any relevant liability it has or may have as such liabilities arise.

(3)

Arrangements to secure the liabilities under paragraph (2)—

(a)

may include arrangements for financial provision agreed with the trustee company and AWE PLC from time to time;

(b)

must come into effect by no later than the day on which the first such direction is given;

(c)

must continue until all qualifying accrued rights^f1 have been transferred to a new public scheme by regulations under section 112(2) of the 2026 Act^f2.

(4)

For the purposes of this regulation, a relevant liability—

(a)

includes any liability that could lawfully be paid by or on behalf of the trustee company from the trust assets or by AWE PLC under the AWE Trust Deed and Rules;

(b)

includes any liability arising or incurred before provision under this regulation comes into effect.

(5)

This regulation does not affect the Crown Guarantee (but see regulation 11).

Annotations

Footnotes

f1: “qualifying accrued rights” are defined in section 112(4) of the 2026 Act.
f2: Section 112(2) enables the Secretary of State to make regulations to transfer qualifying accrued rights under the AWE Pension Scheme to a new public scheme.