Lexis®Library update: The research briefing provides an overview of the Bill, the result of the Commons second reading of the Bill and the Public Committee stage. The report also refers to the High Court’s ruling in Board of the PPF v Dalriada [2020] EWHC 2960 (Ch), which made ‘pension liberation’ schemes eligible to apply to the Financial Compensation Fund for compensation.
The resulting claims arising from this ruling will likely exceed that which can be recovered from levy income, which is subject to a statutory maximum. The Bill therefore gives the Secretary of State powers to make a loan to the Board of the Pensions Protection Fund, which will be repaid by levy over 10–15 years.
According to the briefing, Dame Elizabeth Gloster’s critical report into the Financial Conduct Authority’s regulation of London Capital & Finance plc induced the government to set up a compensation scheme for those affected. The Bill provides the financing for this scheme.
The full report can be read here.
This content was first published by LNB News / Lexis®Library, a LexisNexis® company, on 29 June 2021 and is published with permission. Further information can be found at: https://www.lexisnexis.co.uk/
