Clearance – the present danger?


The Regulator’s anti-avoidance powers (and its guidance on the availability of clearance) have been at the heart of many corporate transactions which involve significant UK pension liabilities. Trustees have quickly learned to flex their muscles to ensure that members are protected as clearance is often only available if trustees receive a quid pro quo (called “mitigation” in the guidance) where there is a materially detrimental event relating to the scheme. Therefore, the Regulator’s guidance is an increasingly important negotiating tool for trustees.

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