Commentary on Sections Summary The fund Section 188: Fraud Compensation Fund
688.As well as the Pension Protection Fund maintained under section 173, the Board has to maintain a Fraud Compensation Fund. This section identifies the amounts to be payable into the Fraud Compensation Fund, and lists the categories of expenditure that may be charged to that Fund. Subsection (1) sets out that the Fraud Compensation Fund will consist of:
	designated assets transferred from the Pensions Compensation Board when it is abolished under Part 9 of this Act;
	the fraud compensation levy;
	money borrowed from a deposit taker to enable the Board to meet liabilities under this Chapter (section 115);
	interim compensation payments recovered under section 186 by the Board;
	any income or capital gain arising from assets of the fund.
689.Subsection (3) lists permitted payments out of the Fund:
	sums needed to meet any outstanding liabilities of the Pensions Compensation Board which are designated as liabilities of the Pension Compensation Fund;
	fraud compensation payments made to the trustees or managers of schemes under section 185;
	interim compensation payments made to the trustees or managers of schemes under section 186;
	fraud compensation transfer payments made to the Pension Protection Fund under section 187;
	capital repayments on loans under section 115 (borrowing) and interest payments on the capital borrowed.
690.Only those amounts specified in subsection (3) may be paid out of the Fraud Compensation Fund (subsection (4)).