BHS collapse could cost PPF £300m

News update from CFM (UK) Ltd:  Lesley Titcomb, chief executive of the Pensions Regulator, has told MPs on the Business, Innovation and Skills and Work and Pensions select committee the watchdog was concerned about BHS four years before its collapse. The retailer had devised a 23-year recovery plan in 2012 but this scheme, although “atypical”, did not meet the risk thresholds to launch an investigation. Ms Titcomb said all risk indicators would now be reviewed. Ms Titcomb also revealed the regulator learnt of the sale of BHS through the media despite having ongoing talks with pension trustees, an admission that led Conservative MP Richard Fuller to say: “Not much of regulator are you?” Also giving evidence was Alan Rubenstein, the chief executive of the Pension Protection Fund, who said BHS’s plan was “extraordinary” and “more than twice the average”. Mr Rubenstein suggested the cost to the PPF of BHS’s collapse could rise to £300m, adding that the regulator should intervene more proactively and that perhaps takeovers should require clearance from them before proceeding.

The Morning Account

Posted by Mandy Kemp on May 10th 2016

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