In more FAS news, the DWP has issued regulations which bar trustees of collapsed pension schemes eligible for the FAS from buying annuities on behalf of members for nine months from the effective date of the regulations, except in specified circumstances. The Financial Assistance Scheme (Halting Annuitisation) Regulations came into force on 26 September 2007. Although trustees can still apply to the FAS Scheme Manager for permission to purchase annuities, the nine-month embargo follows a recommendation by government actuary Andrew Young in July that buying annuities is not necessarily the best use of assets for such schemes.
The DWP has also issued guidance to trustees explaining the implications of the new regulations. The regulations, guidance and related press release are available at http://www.dwp.gov.uk/fas