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

17 Mar 2014: PPF guarantees harder to certify
As the 31 March deadline for certifying guarantees looms, some schemes will have struggled for the first time to certify their guarantees (‘Type A contingent assets’).  The declaration that trustees have to make is unchanged – they must have no reason to believe that the guarantor at the date of the certificate could not meet its full commitment under the guarantee.  The difference is that PPF's December 2013 guidance for the 2014/15 levy year provides greater clarity on the factors it expects trustees to consider before making the certification.

In particular when considering the resources the guarantor has available to meet a claim, the knock-on effects on the guarantor of the sponsor’s insolvency should be considered.  This might involve a material fall in the guarantor’s assets given the sponsor is worth less and the guarantor may be unable to make a meaningful recovery from any intra-group amounts owed by the sponsor.  Moreover there may be additional claims on the guarantor under cross-guarantees.  These, together with potentially a section 75 claim under the scheme guarantee, may be sufficiently material to lead to the guarantor’s insolvency.

For guarantees for the 2014/15 levy year, trustees will have had to look more closely at group structure and intra-group obligations to be able to certify the guarantor will be able to meet its commitments.  In some cases this will involve a proportionate insolvency analysis (‘outcome statement’) and even a valuation of the remainder of the guarantor’s business to understand the resources available to the guarantor to meet a claim.

Argyll comment:  There are just under 2 weeks to go to the deadline for certifying guarantees so there is still time to carry out the necessary analysis.  For further details contact Richard Hall or Sean Weaver on 020 3755 5300.

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