OpenLegislation

Section 86 “Event of concern” and “period of concern”I1

England, Wales and Scotland

(1)

An “event of concern” takes place in relation to a superfund if any of the following takes place—

(a)

any one of the financial thresholds ceases to be met (subject to subsection (4));

(b)

a debt falls due to the trustees of the superfund scheme under section 75 of the Pensions Act 1995;

(c)

the capital buffer is released otherwise than in accordance with the capital buffer arrangement;

(d)

an insolvency event becomes, in the opinion of the directors of the responsible body, likely to occur in relation to the responsible body;

(e)

an insolvency event occurs in relation to a member of the superfund group;

(f)

the responsible body notifies the Regulator that it wishes to cease to be the responsible body;

(g)

a material transaction takes place;

(h)

a superfund transfer is made to the superfund scheme without approval under Chapter 3;

(i)

an application is made under Chapter 3 for approval of a superfund transfer in relation to which the ceding scheme is itself a superfund scheme;

(j)

an application is made under Chapter 3 for approval of a superfund transfer of a kind described in section 61(3) (merger of sections etc);

(k)

the responsible body or the trustees of the superfund scheme receive a notice from the Regulator stating that, in the Regulator’s opinion, the recipient of the notice—

(i)

has breached a requirement of this Part or of any other legislation relating to pensions that applies to them in respect of the superfund, or

(ii)

is likely to breach such a requirement if remedial action is not taken;

(l)

the Regulator withdraws the superfund’s authorisation under section 94.

(2)

“Period of concern”, in relation to an event of concern, means the period beginning when the event takes place and ending—

(a)

when the Regulator gives the responsible body a notice under section 88(5) (event of concern resolved) in respect of the event, or

(b)

when the superfund scheme is wound up.

(3)

In subsection (1)(g) “material transaction” means—

(a)

a change in the person or persons who have control of the responsible body, or

(b)

a sale by a member of the superfund group of all or substantially all of its assets.

(4)

The Secretary of State may by regulations provide that an event of concern within subsection (1)(a) does not take place—

(a)

unless the Regulator is satisfied that the financial threshold in question is not met, or

(b)

unless the threshold is not met for a period, or in circumstances, specified in the regulations (and for that purpose the period or circumstances specified may involve the exercise of a discretion by the Regulator).

(5)

The Secretary of State may by regulations amend this section for the purpose of adding, removing or varying—

(a)

an event of concern in subsection (1);

(b)

a material transaction in subsection (3).

(6)

In this section—

  • “control” has the same meaning as in section 435 of the Insolvency Act 1986;

  • “director” includes any person occupying the position of director, by whatever name called;

  • “insolvency event” has the same meaning as in Part 2 of the Pensions Act 2004 (see section 121 of that Act).

(7)

Regulations under this section are subject to the affirmative procedure.

Annotations

Commencement

I1

S. 86 in force at Royal Assent for specified purposes, see s. 133(1)