The bark becomes a bite: first contribution notice issued

The Pensions Regulator has issued its first contribution notice (CN).

It has become a universally accepted truth that, since its creation, the Regulator's powers have been used more in the form of a threat, as opposed to fully executed (the exception being the two financial support directions (FSDs) issued in respect of the Sea Containers pension schemes). A couple of months ago, an article appeared in the pensions press quoting the Regulator's delivery director, June Mulroy, as saying that the Regulator had on 12 occasions taken the threat of a CN or FSD to "a very high level - in some of these cases right to the courtroom steps". The Belgian company Michel Van De Wiele is now on the receiving end of the first CN which made it all the way to a Determinations Panel hearing.

There are some general points to take away from this Determination which may be of interest to other schemes. Wragge & Co's experts provide further information.