Section 42 — Pensions Act 2004: Section 38 contribution notice: clearance statements

Section 38 contribution notice: clearance statements 42 1 An application may be made to the Regulator under this section for the issue of a clearance statement within paragraph (a), (b) or (c) of subsection (2) in relation to circumstances described in the application.

2 A clearance statement is a statement, made by the Regulator, that in its opinion in the circumstances described in the application—

a the applicant would not be, for the purposes of subsection (3)(a) of section 38, a party to an act or a deliberate failure to act falling within subsection (5)(a) of that section, b it would not be reasonable to impose any liability on the applicant under a contribution notice issued under section 38, or c such requirements of that section as may be prescribed would not be satisfied in relation to the applicant.

3 Where an application is made under this section, the Regulator—

a may request further information from the applicant;

b may invite the applicant to amend the application to modify the circumstances described.

4 Where an application is made under this section, the Regulator must as soon as reasonably practicable—

a determine whether to issue the clearance statement, and b where it determines to do so, issue the statement.

5 A clearance statement issued under this section binds the Regulator in relation to the exercise of the power to issue a contribution notice under section 38 to the applicant unless—

a the circumstances in relation to which the exercise of the power under that section arises are not the same as the circumstances described in the application, and b the difference in those circumstances is material to the exercise of the power.