Explanatory note

The Pensions Compensation Board is established under section 78 of the Pensions Act 1995. Section 78(5) enables the Board to borrow such sums as they may require for exercising any of their functions. Section 78(6) provides that the aggregate amount outstanding in respect of the principal of any money borrowed must not exceed the prescribed amount. These Regulations provide that the prescribed amount shall be £15 million.

As these Regulations are made before the expiry of the period of 6 months beginning with the coming into force of the provisions of Part I of the Act by virtue of which they are made, the requirement for the Secretary of State to consult such persons as he considers appropriate does not apply.

These Regulations do not impose any costs on business.