Commentary on Sections Summary Reconsideration Section 152: Duty to assume responsibility following reconsideration
515.This section sets out the circumstances in which the Board will assume responsibility for a scheme on reconsideration.
516.Subsection (2) provides for the Board to assume responsibility for a scheme if it is satisfied that the value of the assets of the scheme as at the reconsideration date is less than the aggregate of: the amount quoted in the protected benefits quotation accompanying the application (i.e. the amount required to buy out the protected liabilities); the amount of the liabilities of the scheme not related to scheme members; and the estimated costs of winding up the scheme.
517.Subsection (3) provides that where the Board makes a determination under this section it must issue a ‘determination notice’ and give a copy of that notice to the trustees or managers of the scheme and the Regulator. Subsection (5) states that the Board is not required to assume responsibility for the scheme under subsection (2) until the determination notice issued under subsection (3) becomes binding.
518.Subsection (7) states that where a determination notice issued under subsection (3) becomes binding, the Board must give a notice to that effect and a copy of the binding notice to the trustees or managers of the scheme and the Regulator. Subsection (8) sets out the power to make regulations prescribing the form of the notice under subsection (7) and the information to be contained within it.
519.Subsection (9) allows the Board to obtain its own valuation of the assets of the scheme as at the reconsideration date if it wishes –rather than relying on the audited scheme accounts. Subsection (10) provides that for the purpose of calculating the estimated costs of winding-up, regulations and guidance under section 143(4) and (6) will apply as they apply for the purposes of section 143. Subsection (12) provides that this section is subject to sections 146 and 147 under which the Board can refuse to assume responsibility for a scheme in certain circumstances.