While UK politicians have voted against a ‘no-deal’ Brexit, much uncertainty remains about the outcome with more parliamentary votes to come and the approval of the EU yet to be secured. Hogan Lovells’ Faye Jarvis explores the risks for UK trustees.
Key points:
-
UK trustees have a duty to review the effect of a ‘no-deal’ Brexit and should understand the impact on the sponsor’s business
-
EU data transfer and overseas payments are potential issues
-
Restrictions on insurers could affect cross-border payments
-
Trustees should discuss contingencies with non-EU managers and advisers if they have not already done so
-
Contingent asset claims in EU entities could be complex to enforce in practice
One of the biggest risks for pension schemes in a ‘no-deal’ Brexit scenario is an adverse impact on the employer covenant. The Pensions Regulator (TPR) recently issued a statement that “trustees should undertake a review of any actions or contingency plans in the context of ‘no deal’, if they have not already done so”.
Adopting a ‘wait and see’ approach is no longer an option. If they have not already done so, trustees should engage with employers to understand what impact a no-deal Brexit could have on their business and what plans they have in place to mitigate these risks.
Full article
© IPE International Publishers Ltd.
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article