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

28 Feb 2017: TPR agrees settlement with Sir Philip Green
On 28 February 2017 the Pensions Regulator has agreed a settlement leading to the cessation of regulatory action against Sir Philip Green and associated companies Taveta Investments Ltd and Taveta Investments (No.2) Ltd.
 
TPR had opened its anti-avoidance investigation following the sale of BHS to Retail Acquisitions Ltd in March 2015, although it had been in correspondence with the trustees and employer for some years previously.

TPR issued Warning Notices for Contribution Notices and Financial Support Directions on 2 November 2016 to Sir Philip Green, his associated Taveta investment companies, Dominic Chappell and Mr Chappell's company, Retail Acquisitions Ltd, which had acquired BHS (see article).
 
As a note to other employers, TPR’s section 89 report issued in June 2017 points out that while TPR considered various options of settlement leading up to the issue of the Warning Notices, it will nonetheless not be “distracted or deterred” from its investigations.

The settlement involves £343m placed in escrow to fund a new scheme with a further £20m to be separately held to cover expenses.  It had been reported previously that prior to the issue of the Notices Sir Philip had offered £250m whereas TPR wanted £350m.  BHS members now have the option to transfer to the new scheme, opt for a lump sum (if eligible) or remain in the current scheme which is expected to transfer to the PPF.  This should enable benefits to be provided to members that transfer at a level at least as great as PPF benefits and in many cases higher.

Regulatory action is continuing against Dominic Chappell and Retail Acquisitions Ltd.

Further details of the background to the BHS case can be found here.

Argyll comment:  This BHS case has been extraordinary in several aspects, not least of which was the fact that its events were played out very publicly as the various parties, including TPR, were scrutinised and criticised by two select committees.  On the one hand the June 2017 section 89 report is a clear case study of TPR’s policies in approaching anti-avoidance cases and what it expects from settlement proposals.  However perhaps taking on board suggestions of failings from the select committees, the report hints at future change.  The Government’s consultation “Security and Sustainability in Defined Benefit Pension Schemes” (the ‘Green Paper’) was largely influenced by the BHS case and picks up some of the themes from it (eg use of Regulated Apportionment Arrangements).
Back  

Clear and concise analysis
Our
team
Our approach
Our experience