NEWS   |    March 5, 2021

Arc Pensions Law to present webinar on the Pension Schemes Act 2021’s impact on commercial activity, corporate rescue and restructurings

Arc Pensions Law is presenting a webinar on Thursday 29 April on the impact of the Pension Schemes Act 2021 on commercial activity, corporate rescue and restructurings.

Any transaction directly or indirectly involving a group with a UK defined benefits (final salary) pension scheme risks being brought to the attention of the Pensions Regulator, who has statutory anti-avoidance ‘moral hazard’ powers to require parties connected and/or associated with the scheme employer to fund or otherwise support that scheme.

The Government, however, decided to strengthen the regulatory framework and get tougher on groups unable or unwilling to meet their pension liabilities. As a result, the Regulator is getting new powers in the Pension Schemes Act 2021 aimed at increasing the long term support provided to ongoing schemes, as well as their recovery on employer insolvency.

These new powers will be relevant to anyone, irrespective of jurisdiction, working on any form of commercial activity, distressed or otherwise, involving groups with a UK defined benefits scheme.

During this webinar, partners from Arc Pensions Law, explain what now needs to go on the commercial radar, including:

  • Criminal offences for ‘wrongdoing’ relating to a defined benefits scheme (applying to any person – so buyers, sellers, professional advisers, lenders, investors etc are all caught and risk up to 7 years in prison).
  • Wider circumstances in which the Regulator can issue Contribution Notices (piercing the corporate veil).
  • New reporting obligations (not just catching share sales, but also business transfers and granting security in priority to the scheme, requiring earlier involvement of both trustees and Regulator).
  • Increased powers of investigation by the Regulator.
  • Potential £1 million fines.

For more information and to register for the event, please click here.

The views in this article are intended for general information purposes only and should not be used as a substitute for professional advice. Arc Pensions Law and the author(s) are not responsible for any direct or indirect result arising from any reliance placed on content, including any loss, and exclude liability to the full extent. Always seek appropriate legal advice from a suitably qualified lawyer before taking, or avoiding taking, any action. If you have any questions on the points raised in the above, please do not hesitate to get in touch.

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