Court of Appeal to scrutinise Lehman FSD

by Hannah Brenton

More from this author

03 Dec 2012

  • Comments
lehman-bros

LEHMAN BROTHERS companies are fighting to be excluded from The Pension Regulator's financial support direction (FSD), having secured a hearing in the Court of Appeal next April.

The 38 companies are due to appear at the Court of Appeal which will scrutinise the Upper Tribunal's powers in pension cases, Accountancy Age's sister publication Professional Pensions reports. 

A source close to the case said the Court of Appeal would grapple with trustees’ role in the regulation of moral hazard cases.

The appeal follows a series of decisions as to the scope of the Lehman FSD.

In the Lehman administration, The Pension Regulator’s Determinations Panel agreed to impose an FSD on six companies – leaving 38 companies off the hook from an original hearing list of 44 targets.

The Lehman Brothers Pension Scheme trustees referred the decision not to impose the FSD on the 38 other companies to the Upper Tribunal.

The companies argued the appeal should be struck out because the trustees should not be able to appeal a negative decision and were out of time.

But Judge Bishopp and Judge Herrington upheld the trustees’ right to appeal as “directly affected” persons (PP Online, 19 June 2012).

The 38 companies have appealed that decision to the Court of Appeal, with the hearing set to take place on the 29 or 30 April 2013.

International law firm Eversheds partner Claire Carroll said the case would be of “great interest” to the industry.

She said: “As a practitioner, the rules are not always necessarily clear as to how the Tribunal are going to process things, so it will be of great interest to the industry to see what the Court of Appeal’s view is to the ambit of the process and the Tribunal’s powers.”

Sackers partner Peter Murphy said if the 38 companies succeed they will not have to fight the FSD further.

He said: “If they succeed on that point then those targets won’t even have to address the substance of whether an FSD should be issued against them.”

A spokesperson from The Pensions Regulator said: “It would be not be appropriate for us to comment on ongoing litigation.”

Visitor comments

blog comments powered by Disqus
display:none

Add your comment

We won't publish your address


By submitting a comment you agree to abide by our Terms & Conditions

Your comment will be moderated before publication

Submit
  • Send

Financial Planning and Performance AnalystCabinet Office-Greater London-Competitive

 
 
 
 
 
 
 
 

 

Newsletters

Get the latest financial news sent directly to your inbox

  • Best Practice
  • Business
  • Daily Newsletter
  • Essentials

Careers

Search for jobs
Click to search our database of all the latest accountancy roles

Create a profile
Click to set up your profile and let the best recruiters find you

Jobs by email
Sign up to receive regular updates with the latest roles suitable for you

Briefings

budget-management

Why budgeting fails: One management system is not enough

If budgeting is to have any value at all, it needs a radical overhaul. In today's dynamic marketplace, budgeting can no longer serve as a company's only management system; it must integrate with and support dedicated strategy management systems, process improvement systems, and the like. In this paper, Professor Peter Horvath and Dr Ralf Sauter present what's wrong with the current approach to budgeting and how to fix it.

cchcover

iXBRL: Taking stock. Looking forward

In this white paper CCH provide checklists to help accountants and finance professionals both in practice and in business examine these issues and make plans. Also includes a case study of a large commercial organisation working through the first year of mandatory iXBRL filing.