PART IITHE PENSIONS REGULATOR
Transactions at an undervalue
Restoration orders: supplementary49
1
This Article applies in relation to a restoration order under Article 48 in respect of a transaction involving assets of a scheme (“the transaction”).
2
The restoration order may in particular—
a
require any assets of the scheme (whether money or other property) which were transferred as part of the transaction to be transferred back—
i
to the trustees or managers of the scheme, or
ii
where the Board has assumed responsibility for the scheme, to the Board;
b
require any property to be transferred to the trustees or managers of the scheme or, where the Board has assumed responsibility for the scheme, to the Board if it represents in any person’s hands—
i
any of the assets of the scheme which were transferred as part of the transaction, or
ii
property derived from any such assets so transferred;
c
require such property as the Regulator may specify in the order, in respect of any consideration for the transaction received by the trustees or managers of the scheme, to be transferred—
i
by the trustees or managers of the scheme, or
ii
where the Board has assumed responsibility for the scheme, by the Board,
to such persons as the Regulator may specify in the order;
d
require any person to pay, in respect of benefits received by him as a result of the transaction, such sums (not exceeding the value of the benefits received by him) as the Regulator may specify in the order—
i
to the trustees or managers of the scheme, or
ii
where the Board has assumed responsibility for the scheme, to the Board.
3
A restoration order is of no effect to the extent that it prejudices any interest in property which was acquired in good faith and for value or any interest deriving from such an interest.
4
Nothing in paragraph (3) prevents a restoration order requiring a person to pay a sum of money if the person received a benefit as a result of the transaction otherwise than in good faith and for value.
5
Where a person has acquired an interest in property from a person or has received a benefit as a result of the transaction and—
a
he is one of the trustees or managers or appropriate persons who entered into the transaction as mentioned in paragraph (6) of Article 48, or
b
at the time of the acquisition or receipt—
i
he has notice of the fact that the transaction was a transaction at an undervalue,
ii
he is a trustee or manager, or the employer, in relation to the scheme, or
iii
he is connected with, or an associate of, any of the persons mentioned in sub-paragraph (a) or (b)(ii),
then, unless the contrary is shown, it is to be presumed for the purposes of paragraphs (3) and (4) that the interest was acquired or the benefit was received otherwise than in good faith.
6
For the purposes of this Article—
a
Article 7 of the Insolvency Order (connected persons) applies as it applies for the purposes of any provision of Parts II to VII of that Order, and
b
Article 4 of that Order (associated persons) applies as it applies for the purposes of that Order.
7
For the purposes of this Article “property” includes—
a
money, goods, things in action, land and every description of property wherever situated, and
b
obligations and every description of interest, whether present or future or vested or contingent, arising out of, or incidental to, property.
8
References in this Article to where the Board has assumed responsibility for a scheme are to where the Board has assumed responsibility for the scheme in accordance with Chapter 3 of Part III (pension protection).