REGULATIONS

The regulatory authority, furthermore, has powers to authorise or direct an occupational pension scheme to be wound-up in certain circumstances, eg if the scheme ought to be replaced by a different scheme, the scheme is no longer required, or it is necessary to wind-up the scheme to protect the interests of generality of the members (s 11(1)). Orders for winding-up may only be made on application of the trustees or managers of the scheme, the employer or any other person empowered to alter the rules of the scheme (s 1(3)). The statute confirms that a winding-up of this nature is as legally effective as if the scheme had been wound-up under the provisions of the scheme itself (s 11(5)). The power to wind-up public service schemes is also conferred on the authority (s 12)). The authority is empowered under ss 13 and 14 of the 1995 Act to apply to the High Court for an injunction to prevent either single or repeated acts which amount to misuse/appropriation of scheme assets. It may also apply for restitution where the trustees have lent money to the employer or provided other forms of financial assistance, or where a power to distribute assets has been exercised in contravention of the repayment of surplus provisions. In Scotland an injunction (interdict) or restitution is available on application to the Court of Sessions. By s 15, the Authority can direct the trustees to pay benefits directly if the employer has failed to set up the required separate account under s 49(5). Section 49(5) requires the establishment of a separate account at a bank into which benefits which have not been paid to members within a fixed period shall be paid. Under s 15 the Authority may direct the trustees to include in their annual report and accounts a report from the Authority and direct that the Authority’s report is sent to all members. Non-compliance is punishable by a fine.