Commentary on Sections Summary Restrictions on schemes during the assessment period Section 134: Directions
432.This section enables the Board to give directions to “a relevant person” during the assessment period.
433.Subsection (2) provides for the Board to give directions to a relevant person during the assessment period on matters relating to the investment of the scheme’s assets; any expenditure; the instigation or conduct of legal proceedings; and any other prescribed matters. This enables the Board to ensure that protected liabilities do not exceed assets or, if they do exceed the assets, that excess is kept to a minimum. Assets for this purpose will not include assets relating to money purchase benefits. Subsection (3) defines the relevant person in relation to a scheme as the trustees, managers, sponsoring employer or such other persons as may be prescribed.
434.Subsection (4) enables the Board to revoke or vary any direction it makes under this section. Subsection (5) provides for section 10 of the Pensions Act 1995 (civil penalties) to apply to any trustee or manager of a scheme who fails to take all reasonable steps to secure compliance with any direction issued to the trustees or managers by the Board. Subsection (6) provides for civil penalties to also apply to any other person who fails to comply with a direction given to him by the Board and does not have a reasonable excuse for such a failure.