Clearance – more obstacles in the way?


Clearance was introduced in April 2005 as a voluntary process to meet concerns about how the Pensions Regulator was going to use its anti-avoidance pwoers. The original clearance guidance was understandably focused on process. But reflecting three years of experience, the revised guidance now looks at when clearance may be available. The guidance is structured on a set of “guiding principles” which ask the parties to look at the true effect of an event on the pension scheme. The draft guidance was published for consultation in September 2007. The 6 month wait before the final guidance was published on 20 March shows the industry concern caused by the Regulator’s increasing confidence in this area.

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