View more on these topics

Pension schemes braced for crucial Supreme Court ruling


The Supreme Court will commence a three-day hearing today to determine where the claims of UK defined benefit schemes rank when a firm enters administration.

The case stems from the collapse of communications giant Nortel Networks, a company which went into administration in January 2009.

In July 2010, The Pensions Regulator issued Nortel with a ‘Financial Support Direction’ which required the company to provide financial support to the Nortel pension scheme worth up to £2.1bn.

Nortel has already unsuccessfully argued that it should not be required to support the pension scheme ahead of other creditors in both the High Court and the Court of Appeal.

Both courts ruled the FSD liabilities would rank as an expense in administration, meaning the FSD liability would be paid out ahead of the general pool of unsecured creditors.

PricewaterhouseCoopers partner Jonathan Land, who advises Nortel Networks’ UK pension interests, says: “The ranking of FSDs has remained a key area of contention over the past few years.

“The final ruling could have a significant impact on the ways in which pension schemes look to safeguard themselves against insolvency situations.

“The knock on impact could be far reaching, affecting insolvency practitioners and the restructuring world more widely.”



Ian McKenna: Cofunds best at supporting advisers’ digital efforts

Two weeks ago I looked at the various microsite options Cofunds make available to advisers to enable them to provide clients with online access to their portfolios. While this is helpful, ideally, an adviser firm wanting to take full advantage of the digital world should be looking to provide an holistic summary of a client’s […]

The changing world of professional connections

The Legal Services Act of 2007, which opened up the legal market to competition, has put the cat among the professional pigeons. In the words of a 2015 Law Society report on what the legal profession is likely to look like in five years’ time: “Business as usual is not an option for many, if […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm