PART IIITHE BOARD OF THE PENSION PROTECTION FUND
CHAPTER 4FRAUD COMPENSATION
Entitlement to fraud compensation
Fraud compensation payments168
1
Where the Board determines to make one or more fraud compensation payments, it must make the payment or payments to the trustees or managers of the scheme in accordance with this Article.
2
A fraud compensation payment may be made on such terms (including terms requiring repayment in whole or in part) and on such conditions as the Board considers appropriate.
3
The amount of the payment (or, if there is more than one, the aggregate) must not exceed the difference between—
a
the amount of the reduction (or, if more than one, the aggregate amount of the reductions) within Article 165(1)(b), and
b
the amount of any recoveries of value obtained before the settlement date (within the meaning of Article 167(2)).
4
Subject to paragraph (3), the Board—
a
must determine the amount of any fraud compensation payment in accordance with regulations made for the purposes of this paragraph, and
b
must take account of any interim payment already made under Article 169.
5
The Board must give written notice of its determination under paragraph (4) to—
a
the Regulator,
b
the trustees or managers of the scheme,
c
if the trustees or managers did not make the application under Article 165 (fraud compensation payments), the person who made that application, and
d
any insolvency practitioner in relation to the employer or, if there is no such insolvency practitioner, the employer.