2.—(1) This regulation applies to a section of a segregated scheme with one employer in relation to that section in circumstances where—
(a)an insolvency event occurs in relation to an employer in relation to that section; or
(b)the trustees or managers of the scheme become aware that the employer in relation to that section is unlikely to continue as a going concern and meets the requirements prescribed under subsection (1)(b) of section 129 of the Act (applications and notifications for the purposes of section 128).
(2) Except as otherwise provided in this Part, in a case to which this regulation applies—
(a)Part 2 of the Act, except Chapter 4, shall be read as if it contained the modifications provided for by this Part; and
(b)references in Part 2 of the Act, except in Chapter 4, to—
(i)“scheme rules” shall be read as if they were references to “scheme rules relating to the section”;
(ii)“the scheme” shall be read as if they were references to “the section”;
(iii)“the employer” shall be read as if they were references to “the employer in relation to the section”; and
(iv)“trustees or managers of the scheme” shall, in relation to a section of a segregated scheme, be read as if they were references to “trustees or managers with ultimate responsibility for the administration of the section”.
(3) Paragraph (2) shall not have effect in relation to section 174 of the Act (initial levy).