The Pensions Regulator’s Determination Panel issued its first Financial Support Directions (FSDs) on 5 February 2008.
It was able to do so because Sea Containers Limited withdrew its appeal against the Pensions Regulator’s earlier decision to issue FSDs allowing the Pensions Regulator’s Determination Panel to now issue the determinations.
Sea Containers Limited, the Bermudan parent company, must now provide a form of financial support to two pensions schemes belonging to its London-based UK subsidiary. It has 30 days to comply.
This is the first time that the Pensions Regulator has used its 'moral-hazard' powers created under the Pensions Act 2004.