(7-13)

House of Commons

Session 2002 - 03
Internet Publications
Other Bills before Parliament

(  7  )
23
Page 13, line 8, after first “scheme” insert “rules”
24
Page 13, line 17, leave out “under” and insert “towards”
25
Page 13, line 20, leave out “under” and insert “towards”
26
Page 13, line 36, after “scheme” insert “rules”
27
Page 13, line 40, leave out subsection (8)
Clause 21
28
Page 14, line 35, leave out from “prevent” to end of line 37 and insert “—

(a)
giving effect to a pension sharing order or provision, or

(b)
giving effect to a pension earmarking order in a case where—

(i)
the order requires a payment to be made if a payment in

respect of any benefits under the scheme becomes due to a

person, and

(ii)
a direction under section 20(4)(d) or (e) does not prevent the

payment becoming due.”
29
Page 15, line 15, after “section 20(4)(f)” insert “, (g)”
Clause 27
30
Page 17, line 14, after “scheme” insert “rules”
31
Page 17, line 17, at end insert “rules”
32
Page 17, line 29, after “scheme” insert “rules”
Clause 31
33
Page 20, line 9, leave out ““effect”” and insert ““have effect””
Clause 35
34
Page 24, line 5, after “employer,” insert—

“( )
the Regulator is of the opinion that the person, in being a party to

the act or failure, was not acting in accordance with his functions as

an insolvency practitioner in relation to another person,”
35
Page 24, line 7, at end insert—

“( )
But the Regulator may not issue a contribution notice, in such

circumstances as may be prescribed, to a person of a prescribed

description.”
36
Page 24, line 16, leave out from “due” to “would” and insert “, to compromise or

otherwise settle such a debt, or to reduce the amount of such a debt which”
37
Page 24, line 17, leave out “and”
38
Page 24, line 19, leave out “11th June 2003” and insert “27th April 2004”
39
Page 24, line 21, at end insert “, and

( )
it is either—

(  8  )

(i)
an act which occurred during the period of six years ending

with the determination by the Regulator to exercise the

power to issue the contribution notice in question, or

(ii)
a failure which first occurred during, or continued for the

whole or part of, that period.”
40
Page 24, line 38, leave out from “company” to end of line 40 and insert “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),”
41
Page 24, line 46, at end insert—

“( )
all the purposes of the act or failure to act (including whether a

purpose of the act or failure was to prevent or limit loss of

employment),”
42
Page 25, line 1, leave out subsection (7)
43
Page 25, line 16, at end insert—

“( )
For the purposes of this section “insolvency practitioner”, in relation to a

person, means—

(a)
a person acting as an insolvency practitioner, in relation to that

person, in accordance with section 388 of the Insolvency Act 1986

(c. 45), or

(b)
an insolvency practitioner within the meaning of section 115(9)(b)

(persons of a prescribed description).”
Clause 37
44
Page 27, line 2, after “P” insert “, or with P and other persons,”
45
Page 27, line 2, after “for” insert “the debt in respect of”
Clause 38
46
Page 27, line 8, after “person” insert “(“P”)”
47
Page 27, line 34, at end insert—

“(6A)
Where a sum is paid to the trustees or managers of the scheme or, as the

case may be, to the Board in respect of the debt due under section 75 of the

1995 Act, P may make an application under this subsection to the Regulator

for a reduction in the amount of the sum specified in P’s contribution

notice.

(6B)
An application under subsection (6A) must be made as soon as reasonably

practicable after the sum is paid to the trustees or managers or, as the case

may be, to the Board in respect of the debt due under section 75 of the 1995

Act.

(6C)
Where such an application is made to the Regulator, the Regulator may, if

it is of the opinion that it is appropriate to do so—

(a)
reduce the amount of the sum specified in P’s contribution notice

by an amount which it considers reasonable, and

(b)
issue a revised contribution notice specifying the revised sum.

(  9  )

(6D)
For the purposes of subsection (6C), the Regulator must have regard to

such matters as the Regulator considers relevant including, where relevant,

the following matters—

(a)
the amount paid in respect of the debt due under section 75 of the

1995 Act since the contribution notice was issued,

(b)
any amounts paid in respect of the debt due by virtue of that

contribution notice,

(c)
whether contribution notices have been issued to other persons as

a result of the same act or failure to act falling within subsection (4)

of section 35 as the act or failure as a result of which P’s contribution

notice was issued,

(d)
where such contribution notices have been issued, the sums

specified in each of those notices and any amounts paid in respect

of the debt due by virtue of those notices,

(e)
whether P’s contribution notice specifies that P is jointly and

severally liable for the debt with other persons, and

(f)
such other matters as may be prescribed.

(6E)
Where—

(a)
P’s contribution notice specifies that P is jointly and severally liable

for the debt with other persons, and

(b)
a revised contribution notice is issued to P under subsection (6C)

specifying a revised sum,


the Regulator must also issue revised contribution notices to those other

persons specifying the revised sum and their joint and several liability with

P for the debt in respect of that sum.”
After Clause 38
48
Insert the following new Clause—

“Section 35 contribution notices: clearance statements

(1)
An application may be made to the Regulator under this section for the

issue of a clearance statement within paragraph (a), (b) or (c) of subsection

(2) in relation to circumstances described in the application.

(2)
A clearance statement is a statement, made by the Regulator, that in its

opinion in the circumstances described in the application—

(a)
the applicant would not be, for the purposes of subsection (3)(a) of

section 35, a party to an act or a deliberate failure to act falling

within subsection (4)(a) of that section,

(b)
it would not be reasonable to impose any liability on the applicant

under a contribution notice issued under section 35, or

(c)
such requirements of that section as may be prescribed would not

be satisfied in relation to the applicant.

(3)
Where an application is made under this section, the Regulator—

(a)
may request further information from the applicant;

(b)
may invite the applicant to amend the application to modify the

circumstances described.

(4)
Where an application is made under this section, the Regulator must as

soon as reasonably practicable—

(a)
determine whether to issue the clearance statement, and

(  10  )

(b)
where it determines to do so, issue the statement.

(5)
A clearance statement issued under this section binds the Regulator in

relation to the exercise of the power to issue a contribution notice under

section 35 to the applicant unless—

(a)
the circumstances in relation to which the exercise of the power

under that section arises are not the same as the circumstances

described in the application, and

(b)
the difference in those circumstances is material to the exercise of

the power.”
Clause 39
49
Page 28, line 18, leave out from second “to” to end of line 20 and insert “one or

more persons.”
50
Page 28, line 21, leave out subsection (5) and insert—

“(5)
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

(5A), and

(b)
the Regulator is of the opinion that it is reasonable to impose the

requirements of the direction on that person.

(5A)
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.

(5B)
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—

(a)
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),

(b)
in the case of a person falling within subsection (5A)(b) or (c), the

value of any benefits received directly or indirectly by that person

from the employer,

(c)
any connection or involvement which the person has or has had

with the scheme,

(d)
the financial circumstances of the person, and

(e)
such other matters as may be prescribed.”
Clause 40
51
Page 28, line 37, leave out subsection (2) and insert—

“( )
An employer (“E”) is a “service company” at the relevant time if—

(  11  )

(a)
E is a company within the meaning given by section 735(1) of the

Companies Act 1985 (c. 6),

(b)
E is a member of a group of companies, and

(c)
E’s turnover, as shown in the latest available accounts for E

prepared in accordance with section 226 of that Act, is solely or

principally derived from amounts charged for the provision of the

services of employees of E to other members of that group.”
52
Page 29, line 1, leave out from “the” to “a” in line 2 and insert “value of the

resources of the employer is less than the amount which is”
53
Page 29, line 4, leave out from “who” to end of line 6 and insert “falls within

subsection (5A)(b) or (c) of section 39 and the value at that time of that person’s

resources is not less than the amount which is the difference between—

(i)
the value of the resources of the employer, and

(ii)
the amount which is the prescribed percentage of the

estimated section 75 debt.”
54
Page 29, line 7, leave out “a person’s net assets are” and insert “—

(a)
what constitutes the resources of a person is to be determined in

accordance with regulations, and

(b)
the value of a person’s resources is”
Clause 41
55
Page 29, line 28, leave out “companies who are”
56
Page 29, line 29, after “for” insert “the whole or part of”
57
Page 29, line 32, after “company” insert “(within the meaning given in section 736

of the Companies Act 1985 (c. 6))”
58
Page 29, line 33, after “for” insert “the whole or part of”
59
Page 29, line 37, at end insert—

“( )
The Regulator may not issue a notice under subsection (1) approving the

details of one or more arrangements falling within subsection (2) unless it

is satisfied that the arrangement is, or the arrangements are, reasonable in

the circumstances.”
After Clause 41
60
Insert the following new Clause—

“Financial support directions: clearance statements

(1)
An application may be made to the Regulator under this section for the

issue of a clearance statement within paragraph (a), (b) or (c) of subsection

(2) in relation to circumstances described in the application and relating to

an occupational pension scheme.

(2)
A clearance statement is a statement, made by the Regulator, that in its

opinion in the circumstances described in the application—

(a)
the employer in relation to the scheme would not be a service

company for the purposes of section 39,

(  12  )

(b)
the employer in relation to the scheme would not be insufficiently

resourced for the purposes of that section, or

(c)
it would not be reasonable to impose the requirements of a financial

support direction, in relation to the scheme, on the applicant.

(3)
Where an application is made under this section, the Regulator—

(a)
may request further information from the applicant;

(b)
may invite the applicant to amend the application to modify the

circumstances described.

(4)
Where an application is made under this section, the Regulator must as

soon as reasonably practicable—

(a)
determine whether to issue the clearance statement, and

(b)
where it determines to do so, issue the statement.

(5)
A clearance statement issued under this section binds the Regulator in

relation to the exercise of the power to issue a financial support direction

under section 39 in relation to the scheme to the applicant unless—

(a)
the circumstances in relation to which the exercise of the power

under that section arises are not the same as the circumstances

described in the application, and

(b)
the difference in those circumstances is material to the exercise of

the power.”
Clause 42
61
Page 30, line 18, leave out from “company” to end of line 19 and insert “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),”
62
Page 30, line 19, at end insert—

“( )
in the case of a person to whom the financial support direction was

issued as a person falling within section 39(5A)(b) or (c), the value

of any benefits received directly or indirectly by that person from

the employer,”
63
Page 30, line 22, leave out from “company” to end of line 23 and insert “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 that company within the meaning of

subsection (10) of that section),”
64
Page 30, line 28, leave out subsection (5)
Clause 44
65
Page 32, line 6, after “P” insert “, or with P and other persons,”
66
Page 32, line 6, after “for” insert “the debt in respect of”
Clause 45
67
Page 32, line 12, after “person” insert “(“P”)”
68
Page 32, line 37, at end insert—

(  13  )

“(7)
Where a sum is paid to the trustees or managers of the scheme or, as the

case may be, to the Board in respect of the debt due under section 75 of the

1995 Act, P may make an application under this subsection to the Regulator

for a reduction in the amount of the sum specified in P’s contribution

notice.

(8)
An application under subsection (7) must be made as soon as reasonably

practicable after the sum is paid to the trustees or managers or, as the case

may be, to the Board in respect of the debt due under section 75 of the 1995

Act.

(9)
Where such an application is made to the Regulator, the Regulator may, if

it is of the opinion that it is appropriate to do so—

(a)
reduce the amount of the sum specified in P’s contribution notice

by an amount which it considers reasonable, and

(b)
issue a revised contribution notice specifying the revised sum.

(10)
For the purposes of subsection (9), the Regulator must have regard to such

matters as the Regulator considers relevant including, where relevant, the

following matters—

(a)
the amount paid in respect of the debt due under section 75 of the

1995 Act since the contribution notice was issued,

(b)
any amounts paid in respect of the debt due by virtue of that

contribution notice,

(c)
whether contribution notices have been issued to other persons in

respect of the same non-compliance with the financial support

direction in question as the non-compliance in respect of which P’s

contribution notice was issued,

(d)
where such contribution notices have been issued, the sums

specified in each of those notices and any amounts paid in respect

of the debt due by virtue of those notices,

(e)
whether P’s contribution notice specifies that P is jointly and

severally liable for the debt with other persons, and

(f)
such other matters as may be prescribed.

(11)
Where—

(a)
P’s contribution notice specifies that P is jointly and severally liable

for the debt with other persons, and

(b)
a revised contribution notice is issued to P under subsection (9)

specifying a revised sum,


the Regulator must also issue revised contribution notices to those other

persons specifying the revised sum and their joint and several liability with

P for the debt in respect of that sum.”
Clause 46
69
Page 32, leave out lines 40 and 41
70
Page 32, line 43, at end insert “and “member” in relation to such a group is to be

construed accordingly”
Clause 47
71
Page 33, line 24, leave out “11th June 2003” and insert “27th April 2004”