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ARTICLE · 03 AUGUST 2012

Pensions Regulator Statement: FSDs And Insolvency

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The Pensions Regulator (the "Regulator") has published a statement setting out its approach to the issuing of financial support directions ("FSDs") in insolvency situations.

United KingdomInsolvency/Bankruptcy/Re-Structuring
Devi Shah
Devi Shah
Andrew Block
Andrew Block
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Originally published on July 31, 2012

Keywords: pension schemes, financial support directions, FSDs

The Pensions Regulator (the "Regulator") has published a statement setting out its approach to the issuing of financial support directions ("FSDs") in insolvency situations. The statement is designed to calm fears following the decision in the joined Nortel and Lehman cases that the "super priority" of FSDs could have a negative impact on the corporate rescue and lending industries.

Background

An FSD requires the recipient to put in place arrangements for the financial support of a defined benefit occupational pension scheme. It may only be issued to a party who is connected or associated with a participating employer in the scheme.

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