Commentary on Sections Summary Circumstances in which Board assumes responsibility for eligible schemes Section 130: Board’s duty where application or notification received under section 129
414.This section relates to cases where an application is made under section 129(1) or a notification is given under section 129(4). As there is no insolvency event or insolvency practitioner in these cases the Board takes responsibility for issuing notices confirming the status of the scheme.
415.If the Board is able to confirm a scheme rescue is not possible, subsection (2) provides for it to issue, as soon as reasonably practicable, a “scheme failure notice” confirming this If the Board is able to confirm a scheme rescue has occurred subsection (3) provides for it to issue, as soon as reasonably practicable, a “withdrawal notice”. The Board must give a copy of any notice to the Regulator, the trustees or managers of the scheme and the employer. This notice is not binding until the period for review has expired and any review, reconsideration, reference to the PPF Ombudsman or appeal against the determination has been disposed of and the notice has not been revoked, varied or substituted.
416.Subsection (5) sets out that the Board can only confirm that a scheme rescue has occurred or is not possible when specific conditions (to be prescribed in regulations) are met.
417.Regulations will set out the format and contents of notices made under this section.
418.Subsection (7) states that where a notice issued under subsection (2) or (3) becomes binding, the Board must give a notice to that effect, along with a copy of the binding notice to the Regulator, the trustees or managers of the scheme and the employer. A notice in relation to a scheme rescue must also state when the Board ceases involvement with the scheme.