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You can find the current article at its original source at https://www.theguardian.com/business/2016/nov/02/philip-green-may-be-forced-to-pay-money-into-bhs-pension-scheme
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| Philip Green may be forced to pay into BHS pension scheme | |
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| Philip Green faces being made to pay money into the BHS pension scheme to help plug a black hole of hundreds of millions of pounds left when the firm went under, the pensions watchdog has announced. | Philip Green faces being made to pay money into the BHS pension scheme to help plug a black hole of hundreds of millions of pounds left when the firm went under, the pensions watchdog has announced. |
| The regulator said it had begun formal enforcement action on Wednesday against Green and the man to whom he sold BHS in 2015 for £1, Dominic Chappell, to seek redress on behalf of 20,000 pension scheme members. | The regulator said it had begun formal enforcement action on Wednesday against Green and the man to whom he sold BHS in 2015 for £1, Dominic Chappell, to seek redress on behalf of 20,000 pension scheme members. |
| “Our decision to launch enforcement action is an important milestone in our work to attain redress for the thousands of members of BHS schemes who have been placed in this position through no fault of their own,” Lesley Titcomb, the Pensions Regulator’s chief executive, said on Wednesday. | “Our decision to launch enforcement action is an important milestone in our work to attain redress for the thousands of members of BHS schemes who have been placed in this position through no fault of their own,” Lesley Titcomb, the Pensions Regulator’s chief executive, said on Wednesday. |
| The regulator has issued warning notices to Green and Chappell, as well as companies owned by the men and their families. The 300-page documents set out the evidence the watchdog believes will demonstrate why they are liable to cover the deficit, which stood at £571m when BHS went bust earlier this year. | The regulator has issued warning notices to Green and Chappell, as well as companies owned by the men and their families. The 300-page documents set out the evidence the watchdog believes will demonstrate why they are liable to cover the deficit, which stood at £571m when BHS went bust earlier this year. |
| “We have been clear in our public commitment to make significant progress by the end of 2016 and the issue of these notices meets that commitment. | “We have been clear in our public commitment to make significant progress by the end of 2016 and the issue of these notices meets that commitment. |
| “Issuing warning notices at this time reflects the outcome of our investigations and that we are yet to receive a sufficiently credible and comprehensive offer in respect of the BHS schemes. | “Issuing warning notices at this time reflects the outcome of our investigations and that we are yet to receive a sufficiently credible and comprehensive offer in respect of the BHS schemes. |
| “We continue to pursue the best deal for members of the BHS pension schemes. If parties wish to approach us with settlement offers, that course remains open to them,” Titcomb said. | “We continue to pursue the best deal for members of the BHS pension schemes. If parties wish to approach us with settlement offers, that course remains open to them,” Titcomb said. |
| Green had made a public commitment to “sort” the scheme out. But reports had suggested it was unlikely the billionaire retail tycoon would be made to pay any money into the ailing pension scheme because, in the view of one expert, there was little evidence of a case against him in documents made public. | Green had made a public commitment to “sort” the scheme out. But reports had suggested it was unlikely the billionaire retail tycoon would be made to pay any money into the ailing pension scheme because, in the view of one expert, there was little evidence of a case against him in documents made public. |
| But the decision to issue warning notices represented a “serious escalation” in the regulator’s work, a source told Sky News. | But the decision to issue warning notices represented a “serious escalation” in the regulator’s work, a source told Sky News. |
| The notices inform the men that the regulator intends to use both its contribution notice (CN) and financial support direction (FSD) powers to demand a specific sum of money towards the scheme and to require ongoing backing to the pension scheme, respectively. No details of the scale of those contributions, which must be agreed with the regulator, have been released. | The notices inform the men that the regulator intends to use both its contribution notice (CN) and financial support direction (FSD) powers to demand a specific sum of money towards the scheme and to require ongoing backing to the pension scheme, respectively. No details of the scale of those contributions, which must be agreed with the regulator, have been released. |
| Green and Chappell will now be asked to respond to the warnings with their comments and representations. The case will then be passed to the regulator’s determinations panel for a decision on how to proceed. | Green and Chappell will now be asked to respond to the warnings with their comments and representations. The case will then be passed to the regulator’s determinations panel for a decision on how to proceed. |
| Responding to the pension regulator’s announcement Green said: “I have provided the regulator with what I believe to be a credible and substantial proposal, with evidence and bank confirmation of cash availability, which would prevent the scheme from entering the Pension Protection Fund. This is in order to achieve a better outcome for the BHS pensioners. | |
| “I have also spoken to the chairman of the trustees who is supportive of the proposal on the basis that it provides members with better benefits than they would receive from the PPF. | |
| “I believe the above statement confirms the statement of intent that I made in regard to the BHS pensioners.” | |
| Frank Field, the Commons work and pensions committee chair, said: “We are not surprised that the Pensions Regulator has, like all the rest of us, lost patience with Sir Philip Green’s excuses and empty promises. His answer throughout our inquiry was always that he was going to ‘sort’ the disastrous position he left the pension fund in when he sold off BHS to Dominic Chappell for £1. | Frank Field, the Commons work and pensions committee chair, said: “We are not surprised that the Pensions Regulator has, like all the rest of us, lost patience with Sir Philip Green’s excuses and empty promises. His answer throughout our inquiry was always that he was going to ‘sort’ the disastrous position he left the pension fund in when he sold off BHS to Dominic Chappell for £1. |
| “We are glad to see TPR [the Pensions Regulator] is now calling his bluff and instigating enforcement proceedings. | “We are glad to see TPR [the Pensions Regulator] is now calling his bluff and instigating enforcement proceedings. |
| “It seems clear Sir Philip would rather kick the can down the road and avoid responsibility than come up with any fair, sustainable settlement for BHS pensioners.” | “It seems clear Sir Philip would rather kick the can down the road and avoid responsibility than come up with any fair, sustainable settlement for BHS pensioners.” |
| Clive Lewis, shadow business secretary, said: “Four months after Sir Philip Green promised to make good the pensions deficit created by his shoddy management of BHS, and weeks after MPs voted unanimously to strip Green of his knighthood, tens of thousands of pensioners are still waiting to find out the fate of their pensions. | Clive Lewis, shadow business secretary, said: “Four months after Sir Philip Green promised to make good the pensions deficit created by his shoddy management of BHS, and weeks after MPs voted unanimously to strip Green of his knighthood, tens of thousands of pensioners are still waiting to find out the fate of their pensions. |
| “Let’s hope that, by stepping up their investigations, the Pensions Regulator will finally hold Philip Green to account and give those pensioners the security they deserve.” | “Let’s hope that, by stepping up their investigations, the Pensions Regulator will finally hold Philip Green to account and give those pensioners the security they deserve.” |