The purpose of the notifiable events regime is to assist TPR in reducing the risks of situations arising that may lead to calls on the PPF. When an event is notified to TPR, it is intended to serve as an early warning mechanism of potential financial difficulties, which in turn might result in the PPF having to assist a scheme.
However, as the Code of Practice points out, a notifiable event, taken in isolation, gives no indication of the financial position of an employer or a pension scheme. Once TPR receives a report of an event made in accordance with the provisions of the Code, it will use other information such as that included in the annual return to determine its response. If it believes a scheme to be at risk, it has a range of actions available including imposing improvement notices or appointing an independent trustee.
As the purpose is to safeguard the PPF, the duty to notify only applies in relation to schemes which are eligible to enter into the PPF (broadly, occupational defined benefit schemes).
There are 2 kinds of notifiable events, scheme-related notifiable events, which the trustees are obliged to notify to TPR and employer-related notifiable events, which the employer must notify.