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<p>The Pensions Regulator does not have jurisdiction over corporate business transactions,
such as the withdrawal of credit insurance, and does not have the power to require
insurance companies to seek approval before withdrawing insurance cover.</p><p> </p><p>The
Pensions Regulator operates a voluntary clearance procedure to those who are considering
transactions involving companies with defined benefit schemes. If clearance is not
applied for and granted, the Regulator may exercise its anti-avoidance powers, if
it considers that the transaction was aimed at avoiding a debt to the pension scheme.
These powers can be applied up to six years after a transaction has taken place.</p><p>
</p><p>Employers sponsoring defined benefit pension schemes are also required to notify
the Regulator of certain prescribed events. These do not include the withdrawal of
credit insurance but should the withdrawal of such insurance trigger a prescribed
event, including insolvency, then the employer would be required to notify the Pensions
Regulator.</p><p> </p><p>Defined benefit pension schemes also go through a valuation
process every three years (tri-annual evaluation), comparing assets against liabilities,
and the withdrawal of credit insurance might be identified by the Regulator as part
of this process.</p>
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