Part 3: The Pensions Regulator Sanctions for avoidance of employer debt etc Section 107: Sanctions for avoidance of employer debt etc S58C: Financial penalty for avoidance of employer debt
Subsection (1) of new section 58C states that it applies to occupational pension schemes other than from money purchase schemes and other schemes as prescribed.
	Subsection (2) enables the Regulator to issue a financial penalty under section 88A of the Pensions Act 2004 to a person for avoidance of employer debt. The subsection provides that the Regulator can issue the penalty if the person was party to an act or failure where the main purpose was to:
prevent the recovery of the whole or any part of a debt due from the employer under section 75 of the Pensions Act 1995,
prevent such a debt becoming due,
compromise or otherwise settle such a debt, or
reduce the amount of such a debt which would otherwise become due,
and it was not reasonable for the person to act or fail to act in the way that the person did.
	Subsection (3) provides that the penalty does not apply to a person who is acting in accordance with their function as an insolvency practitioner. "Insolvency practitioner" is defined in accordance with section 58A(9) of the Pensions Act 2004.
	Subsection (4) sets out that, for the purposes of this section, a debt due under section 75 of the Pensions Act 1995 includes a contingent debt under that section.
	Subsection (5) further sets out that in the case of such a contingent debt, the reference in subsection 2(b), of this section, to preventing a debt becoming due is to be read as including a reference to preventing the occurrence of any of the events specified in section 75(4C)(a) or section 75(4C)(b) of the Pensions Act 1995 upon which the debt is contingent.
	Subsection (6) of new section 58C outlines that for this section, parties to an act or deliberate failure to act include persons who knowingly assist in the act.
	Subsection (7) of new section 58C provides that where the Regulator is of the opinion that a person was party to a series of acts or failures to act, and the requirements of subsection (2) are met in relation to the series, the series of acts or failures to act is to be regarded as an act or failure in relation to which the requirements of subsection (2) are met.