The Compendium

Note: Schemes of Arrangement, exit of Administration by dissolution and Members' Voluntary Liquidations are not 'insolvency events'.

Insolvency events happen in relation to pensions, and in particular, the Pension Protection Fund. When an insolvency event occurs, in relation to a sponsoring employer of an occupational pension scheme, a notification under section 120 of the Pensions Act 2004 must be issued by the Insolvency Practitioner (IP) to the Pension Protection Fund, The Pensions Regulator and the trustees of the fund.

If the pension scheme then enters an assessment, the IP must confirm whether the pension scheme can be rescued.

The IP will then:

1. Issue a withdrawal notice to the Pension Protection Fund; the scheme then continues, or winds up outside the Fund; or
2. The IP issues a 'ceasing to act' notice to the Pension Protection Fund; or
3. The IP issues a scheme failure notice and the scheme continues through the assessment.

[See 'Administration', 'Pension Protection Fund', 'Creditors' Voluntary Liquidation', 'Members' Voluntary Liquidation', 'Insolvency Practitioner', 'IP', 'The Pensions Regulator', 'Withdrawal Notice', 'Ceasing to Act Notice', 'Scheme Failure Notice', 'Moratorium' and 'Nominee'.]

Insolvency Practitioner

Insolvency work carried out under the Insolvency Act 1986 is regulated. Only a quali.ed and licenced Insolvency Practitioner (IP) can carry out certain roles. For example, only a fully qualified and licenced Practitioner can act as a Liquidator or an Administrator for a company, a Trustee in Bankruptcy, or a Nominee and Supervisor of a Voluntary Arrangement.

The statute dealing with the qualification of an Insolvency Practitioner (IP) is the Insolvency Practitioners Regulations 2005.

Only individuals (not .rms or companies, etc.) may act as an Insolvency Practitioner.