PPF kept in the dark over insolvent businesses

PPF kept in the dark over insolvent businesses

Pensions Protection Fund complains that increasing number of practitioners are failing to report when they are acting for an insolvent business with a pensions scheme

Pensioners could face having part of their pensions reclaimed by the Pensions
Protection Fund as a direct result of insolvency practitioners failing to do
their statutory duty.

The PPF has complained that an increasing number of practitioners fail to
report when they are acting for an insolvent business with a pension scheme,
which can result in overpayments and claw backs.

The industry was previously warned about the issue in 2006.

Chief executive Partha Dasgupta reiterated the PPF’s concerns to regulatory
bodies after it found that the situation had worsened in recent months: ‘It’s
fair to say that things have got steadily worse, they must not forget it is a
statutory obligation.

‘A long delay between the insolvency and informing the PPF means we have to
recoup overpayments. The quicker we know, the quicker the [pension scheme
members] get certainty,’ she added.

The Insolvency Practitioners’ Association said it was aware of the PPF’s
concerns and instructed its inspectors to check that practitioners undertook
their obligation to inform the PPF of pension scheme liabilities in relation to
insolvent businesses.

The ICAEW said it had ‘taken action’ to remind its practitioners of their
reporting requirements under the Pensions Act. Trade body R3 reminded its
members of their responsibilities to the PPF in its latest technical guidance.

Share

Subscribe to get your daily business insights

Resources & Whitepapers

Why Professional Services Firms Should Ditch Folders and Embrace Metadata
Professional Services

Why Professional Services Firms Should Ditch Folders and Embrace Metadata

3y

Why Professional Services Firms Should Ditch Folde...

In the past decade, the professional services industry has transformed significantly. Digital disruptions, increased competition, and changing market ...

View resource
2 Vital keys to Remaining Competitive for Professional Services Firms

2 Vital keys to Remaining Competitive for Professional Services Firms

3y

2 Vital keys to Remaining Competitive for Professi...

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. Often, clients look at the firms own inf...

View resource
Turn Accounts Payable into a value-engine
Accounting Firms

Turn Accounts Payable into a value-engine

3y

Turn Accounts Payable into a value-engine

In a world of instant results and automated workloads, the potential for AP to drive insights and transform results is enormous. But, if you’re still ...

View resource
Digital Links: A guide to MTD in 2021
Making Tax Digital

Digital Links: A guide to MTD in 2021

3y

Digital Links: A guide to MTD in 2021

The first phase of Making Tax Digital (MTD) saw the requirement for the digital submission of the VAT Return using compliant software. That’s now behi...

View resource