4 May 2021: Argyll opens Leeds office

17 Jun 2020: TPR updates Contribution Deferral guidance

5 Aug 2019: TPR's tougher stance on recovery plans

7 Mar 2019: TPR’s Annual Funding Statement a game-changer

7 Dec 2018: DWP publishes superfund consultation

26 Jun 2017: TPR agrees settlement with Coats

30 Apr 2017: PM promises TPR M&A powers

28 Feb 2017: TPR agrees settlement with Sir Philip Green

9 Nov 2016: Brexit so far

8 Nov 2016: BHS ripple effect

2 Nov 2016: Sir Philip Green sent warning notice

1 Nov 2016: Argyll Financial becomes Argyll Covenant

3 Oct 2016: Tata Steel update

2 Jun 2016: BHS to be liquidated

29 Mar 2016: Tata plans sale of UK Steel

3 Sep 2015: TPR takes dim view of late valuations

13 Aug 2015: New TPR covenant guidance

28 May 2015: Contribution notice in Carrington Wire case

22 Dec 2014: Third warning notice for Guinness Peat

18 Dec 2014: New PPF rules for Asset-Backed Contributions

19 Aug 2014: TPR announces Lehman Brothers settlement

10 Jun 2014: TPR publishes revised funding code

27 Mar 2014: EC postpones holistic balance sheet

20 Mar 2014: PPF announces new insolvency risk model

17 Mar 2014: PPF guarantees harder to certify

7 Feb 2014: Argyll Financial submits consultation response

2 Dec 2013: Regulator publishes new draft funding code

19 Nov 2013: Asset-backed contributions guidance from TPR

22 Oct 2013: FSD warning helps MF Global scheme buyout

10 Sep 2013: TPR supportive of Kodak restructuring

31 Jul 2013: Schneider Electric acquires Invensys for £3.4bn

24 Jul 2013: Supreme Court overturns FSD super-priority

8 May 2013: Support for employers in TPR's Statement

22 Oct 2013: FSD warning helps MF Global scheme buyout
TPR has issued a ‘section 89’ report setting out its involvement in helping the trustees of MF Global’s UK scheme achieve a buyout.

MF Global was a US-based broker-dealer business which filed for Chapter 11 bankruptcy protection in the US on 31 October 2011.  The sponsor of the UK Scheme, MF Global UK Services Limited, which provided employee and pension services for the UK operations of the MF Global group, went into administration on the same date.  As a result the scheme entered the PPF assessment period.

Shortly after the Group’s insolvency, the Regulator began an investigation to determine whether it would be appropriate to issue a Financial Support Direction (FSD) against another Group company in the UK. The regulator worked closely with the scheme trustees to finalise a ‘warning notice’ making the case for an FSD, which it intended to issue by 30 October this year.

In parallel, the trustees of the scheme entered into discussions with the administrators and on 16 October accepted a sum of money sufficient to buy out members’ benefits with an insurance company at a ‘broadly similar´ level to those promised prior the sponsor’s administration.

The Regulator will now not proceed with regulatory action and the scheme will wind up outside the PPF.

Argyll comment:  this looks like a text book example of TPR’s moral hazard powers (or at least the threat of them) working in practice.  The only employer was a service company and appears to have been ‘insufficiently resourced’ as defined in legislation.  The Regulator would also have satisfied itself that an FSD would have been reasonable, for example if the other the benefit derived from the employer by the other subsidiary.

Clear and concise analysis
Our approach
Our experience