Funding arrangement meaning

When considering an arbitration, you should consider: how the dispute will be financed and managed overall can the client realistically cover your professional fees together with the arbitration expenses? could another party or source be prepared to pick up the entire bill? is any relevant insurance already in place and available? would after-the-event insurance cover be an appropriate option? might your firm accept a conditional fee arrangement, a damages-based agreement, or some other funding structure? See Funding Arrangements—Overview (note: this link is not arbitration-specific) is the client open to exploring third-party funding? ...

THIS CHECKLIST APPLIES TO DEFINED BENEFIT SCHEMES ONLY Schemes which require a summary funding statement Trustees of a defined benefit arrangement must draw up and distribute a summary funding statement to the scheme’s members and beneficiaries where the scheme: is an occupational pension scheme that meets the requirements in Schedule 1, paragraph 1 of the Occupational and Personal Pension Schemes (Disclosure of Information) Regulations 2013, SI 2013/2734 (the Disclosure Regs 2013). For further details, see Disclosure requirements applicable to occupational and personal pension schemes after 5 April 2014—Scope of the 2013 Disclosure Regulations; and falls within the scope of Part 3 of the Pensions Act 2004...

THIS CHECKLIST APPLIES TO MULTI-EMPLOYER DEFINED BENEFIT OCCUPATIONAL PENSION SCHEMES General For an employer leaving an underfunded defined benefit occupational scheme, apportionment arrangements provide an option other than paying an s 75 debt in full when an employment-cessation event occurs. There are three forms of apportionment arrangement: scheme apportionment arrangement (SAA) regulated apportionment arrangement (RAA) flexible apportionment arrangement (FAA) The statutory requirements for apportionment are prescribed in the Employer Debt Regs, SI 2005/678, regs 6B, 6E and 7A, together with the definitions in reg 2(1). The Pensions Regulator (TPR) has produced guidance to help employers and trustees understand the available approaches for addressing s 75 debts, including apportionment arrangements. If an apportionment arrangement could adversely affect a scheme’s ability to meet its pension liabilities, the exiting employer and the remaining employers should consider seeking clearance from TPR...

Original news Mr Y (CAS-57893-P0C6)—20 August 2025 / Ms R (CAS-58612-P1X1)—18 July 2025 Summary The Pensions Ombudsman dismissed a complaint concerning a loan note investment. The scheme’s independent trustee bore no responsibility for losses arising from this high-risk, speculative asset. The complainants had completed forms confirming the trustee was not giving investment advice and could not be held accountable for any investment loss. The arrangement ran on an execution-only basis. The trustee also undertook appropriate due diligence before proceeding. In light of these factors, no liability ultimately attached to the trustee for the loan note loss. The determination highlights the perils of placing funds into non-standard investments. Accordingly, the complaint failed. What were the facts? Ms R and Mr Y were members of the Westerby Pension Scheme (the Scheme). The Scheme was a self-directed, self-invested personal pension (SIPP) scheme. Westerby Trustee Services Limited (Westerby) was the Scheme’s independent trustee and administrator...

TPR confirmed that, under the terms of the new agreement, ITV will bring the 2,800 Box Clever scheme members into its own pension arrangement. This move guarantees members their full entitlements, including back payments owed to them, replacing the reduced-level payments they had been receiving since 2014 under the Pension Protection Fund (PPF). 'Today's announcement shows how we deploy our powers to safeguard savers and, if required, vigorously pursue matters through the courts to secure an acceptable outcome,' said Mel Charles, the regulator's interim executive director of regulatory compliance. Box Clever was created in 2000 as a joint venture between Granada (now part of ITV) and Thorn Finance Ltd, which has since been renamed Carmelite Capital Ltd. When the venture failed in 2003, the pension fund was left underfunded and, as a result, prompted TPR to examine whether ITV had potential financial responsibilities to the scheme. In 2011 TPR warned ITV of its intention to issue financial support directions to five companies that were within its group, on the basis...

Re The Sustainable Bathroom Company Ltd [2023] EWHC 2065 (Ch), [2023] All ER (D) 60 (Aug) What are the practical implications of this case? This ruling reassures appointing creditors, their professional representatives and the insurers behind them. Although the judge accepted that the director’s complaints about the creditors’ behaviour had merit, the court still held the administration appointment to be effective. Running through the judgment is the principle that debentures exist to secure indebtedness in favour of creditors, and that this substantive reality ought to trump technical imperfections of form—save, perhaps, where adherence to substance would visit serious injustice on the debtor. What was the background? The applicant was the founding director of a modest enterprise manufacturing electric bamboo toothbrushes supplied to Aldi. To finance the procurement of stock from China, the company entered into a funding arrangement with a financier, agreeing in return to share its profits. To enable the structure, incoming receipts were to be paid to...

Premier Oil is among a number of oil and gas companies that have reassessed their funding options to cope with the effects of an extended period of low crude prices. Brexit impact From exit day (31 January 2020), the UK ceased to be an EU Member State. Nevertheless, under the Withdrawal Agreement, the UK entered an implementation period, during which EU law continued to apply. In many Brexit SIs, references to exit day should be construed as referring to IP completion day (the end of the implementation period, defined in clause 39 as 31 December 2020 at 11.00 pm), unless that wording is expressly disapplied by the relevant SI. For more detail, see News Analysis: Brexit—impact of the Withdrawal Agreement and European Union (Withdrawal Agreement) Act 2020 for R&I lawyers, and Brexit Bulletin—key updates, research tips and resources. While schemes do not fall within the scope of the Recast Regulation on Insolvency, their later recognition frequently depends on Brussels I (recast) (see below and Practice Note: Brexit—impact on...

What is the PCSPS? Until 30 September 2002, the Principal Civil Service Pension Scheme (PCSPS) was the only pension option for the civil service. From 1 October 2002, four distinct sections were introduced within the PCSPS: Classic (the 1972 Section), Classic Plus (a blend of Classic and Premium), Premium (the 2002 Section) and Nuvos (the 2007 Section). The first three operate on a final salary basis, whereas Nuvos is a career-average section. For further details on how these sections were established, see below. Subsequently, on 1 April 2015, a new arrangement, the Civil Service Pension scheme (CSP) alpha, was created to provide benefits on a career average basis. When alpha was brought in, the government acted to close the PCSPS to future accrual, subject to: the retention of a final salary link in the PCSPS for active members, meaning benefits earned in the PCSPS are calculated using final salary at the point of leaving the civil service rather than when active PCSPS membership ended... ...

Export credit agency (ECA) backed financing has long served as a dependable funding route for the shipping and offshore sectors, yet the financial crisis expanded the influence of ECAs across all areas, from cruise vessels to drilling units and liquefied natural gas (LNG) carriers. Banks commonly welcome ECA participation as it enables them to manage capital pressures in a capital‑intensive industry and to address risks tied to exporting to overseas purchasers. ECAs provide, among other measures, direct lending, insurance and guarantees to facilitate ship finance transactions and to safeguard the interests of domestic shipyards selling worldwide. The financing structure and documentation will differ depending on the particular form of support delivered by the ECA. What are Export Credit Agencies? An ECA is typically a governmental body or a quasi‑governmental agency, but it can also be a publicly or privately owned company (acting on behalf of the relevant government) which, in shipping finance transactions, either furnishes...

Standard CFA (success fee and costs insurance premium not recoverable inter partes) We have explored several ways to fund your costs, including: legal expenses insurance, e.g. under your home or car insurance through a trade union or other membership organisation via a third-party funding arrangement through legal aid [any other method you may have discussed] As none of these routes is available or appropriate, we have agreed to act for you on a no-win-no-fee basis. This is a conditional fee agreement (CFA), and we have enclosed the agreement with this letter. We are satisfied that this CFA suits your needs and serves your best interests. Key features of no-win-no-fee The table below sets out what you would be responsible for if you succeed, and whether those sums can be recovered from your opponent. Our base costs, which depend on the time spent on your case and are calculated at the hourly rates stated in...

This precedent is produced on the assumption that the drafter acts for the buyer and on the footing that the target company (the Company) is a subsidiary of the Seller. You are strongly encouraged to engage a pensions specialist at the earliest opportunity. 1 Definitions For the purposes of paragraphs 2 to 9 (inclusive): Employee means any current or former employee, officer or director of the Company [ or of any Group Company ] [ and any other person involved in managing the affairs of the Company ]; Pension Scheme[s] means [ [ name(s) of scheme(s) ] OR an arrangement or practice for the payment of, or contribution towards, an annuity, pension, lump sum, gratuity or similar benefit to be provided on retirement, ill-health, death or change in service status, or pursuant to a pension sharing order, in relation to the service or historic service of an Employee or any other person, or for the benefit of that individual’s dependants ]. ...

What is a DCFA? Most practitioners know the ‘pure’ CFA, commonly referred to as a ‘no win, no fee’ agreement. Working under a pure CFA, the lawyer or legal representative is remunerated only upon a win, as the CFA expressly defines it. If that outcome is not achieved, no fee is payable for the professional work undertaken on the matter. For additional detail, see the subtopic: CFAs and DBAs for further information. A DCFA is often described as a ‘no win, lower fee’ arrangement in contrast to the pure CFA. Under a DCFA, the client agrees to meet the lawyer’s fees in full on success; if the case fails, a reduced fee is payable to the representative. The role of success fees Success fees exist to ensure a solicitor’s portfolio of CFA-backed litigation can operate at nil net loss overall. Put differently, the success uplifts on winning matters are designed to meet the base costs that cannot be recovered on losing matters within that portfolio...