Commentary on Sections Assistance for other European regulators Section 294: Stopping disposal of assets of institutions administered in other Member States
1176.Article 19(3) of the Directive requires Member States to put in place mechanisms to prohibit, in accordance with the provisions of Article 14, the free disposal of assets held by a depositary or custodian located within its territory at the request of the pension scheme’s home Member State.
1177.Subsection (1) provides that this section applies where the Regulator is asked by the competent authority of another Member State for help in prohibiting the disposal of UK held assets of a European pensions institution with its main administration in that Member State (“European pension institution” is defined in section 293(8)). On an application from the Regulator, subsection (2) allows the High Court, or the Court of Session in Scotland (subsection (7) refers), to grant a restraining order preventing a depositary or custodian from disposing of, or otherwise dealing with, UK-held assets of a European pensions institution whose main administration is elsewhere within the EU. Where such an order is granted, the Court may also grant subsequent orders enabling the pension scheme’s own ‘home’ regulatory authority to take any appropriate action in respect of the UK-held assets concerned.
1178.Subsection (4) ensures that the trustees or managers of a cross-border scheme involved in such proceedings have equal participation rights.
1179.Subsection (5) gives the Court discretion to award appropriate costs and/or expenses to any of the parties to proceedings concerned.