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<p>The government has recently carried out a review of the impact of voluntary industry
measures introduced in 2015 to improve confidence in pre-packaged sales in administration.
The review will inform a decision on whether further regulation is required where
a business is sold via a pre-pack sale to a person connected with the old company.
We expect to publish the outcome of the review shortly.</p><p> </p><p>As part of the
review the Government liaised with the Pension Protection Fund, which made clear in
its response to concerns raised by the Chair of the DWP Select Committee, that it
does not fundamentally take issue with pre-packs but where there are concerns, these
are referred to The Pensions Regulator for investigation.</p><p> </p><p>The government
already has robust measures in place to prevent directors of insolvent companies who
are guilty of poor behaviour from taking part in the management of companies in the
future. When a company enters a formal insolvency procedure, such as administration,
the insolvency practitioner has a legal duty to report to the Insolvency Service on
the conduct of the directors and where wrongdoing is identified, action can be taken
to disqualify them for up to 15 years.</p><p> </p><p>The government response to the
2018 White Paper “Protecting Defined Benefit Pension Schemes” proposes additional
powers for The Pensions Regulator with a tougher approach to the minority of employers
whose irresponsible behaviour does put pension schemes at risk.</p>
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