Examples of Financial Support Direction in a sentence
The Regulator must also show that imposition of a Financial Support Direction is reasonable.A Financial Support Direction can generally only be issued to a corporate entity, not an individual (in contrast to a Contribution Notice), and the Regulator must commence its case within a two year ‘lookback period’.
However, under the current regime, a Financial Support Direction does not impose a specific enforceable obligation on a target – instead, it is up to the recipient of the Financial Support Direction to propose a form of financial support for consideration by the Regulator.
This structure allows for flexibility in the form of financial support which is potentially acceptable; however the multi-stage approach means that it might be a very long time before support is actually obtained for a scheme.There are various tests which the Regulator must satisfy in order to be able to issue a Financial Support Direction – including that the sponsoring employer is either a service company or is “insufficiently resourced”.
We propose to strengthen and improve the way Financial Support Directions work by:• Creating a single-stage process, under which the Financial Support Direction would create a specific and enforceable obligation on the target (rather than this occurring at some later stage as in the current regime).