Parliamentary.ai

Overview

This bill amends the Corporate Insolvency and Governance Bill, primarily focusing on enhancing the protection of pension schemes during company insolvency. It grants additional rights to the Pensions Regulator and the Pension Protection Fund (PPF) to safeguard pension assets. The bill also addresses sales to connected persons during administrations and clarifies regulatory procedures for various sections of the act.

Description

Pension Scheme Protections

The amendments significantly strengthen the role of the Pensions Regulator and the PPF in corporate insolvency proceedings. They gain enhanced powers to access information, intervene in the insolvency process, and even make applications on behalf of pension scheme creditors. These changes aim to improve the protection of occupational pension schemes, especially those not offering money-purchase schemes, during company insolvencies.

Sales to Connected Persons

The bill revises and extends the existing temporary powers regarding the sale of company assets to connected persons during administration. These revised powers allow for better scrutiny of such transactions and require regulatory oversight to prevent potentially unfair or predatory deals.

Regulatory Procedures

The bill revises and clarifies regulatory processes related to the making and approval of various regulations, including those concerning pension schemes, by adjusting deadlines and processes in different parts of the UK.

Government Spending

The bill's financial impact is not explicitly stated in the provided text. However, it is likely to involve increased administrative costs for government bodies such as the Pensions Regulator and the PPF due to their expanded roles and responsibilities in overseeing corporate insolvencies involving pension schemes. The exact figures are unavailable from the provided text.

Groups Affected

• Companies: Companies facing insolvency will face increased scrutiny, particularly regarding pension schemes and sales to connected persons.
• Pension Schemes: Members of occupational pension schemes will benefit from enhanced protection of their benefits during company insolvencies.
• Pensions Regulator: The Regulator will have a significantly increased role in monitoring and acting on behalf of affected pension schemes.
• Pension Protection Fund (PPF): The PPF will have expanded authority to safeguard eligible pension schemes.
• Administrators: Administrators will face additional responsibilities and requirements regarding sales to connected persons.
• Creditors: Creditors of insolvent companies will see changes to the process depending on the nature of their claim.