GPG gets warning notices from UK Pensions Regulator, mulls implications
Guinness Peat Group, which has exited more than 50 investments to focus on UK threadmaker Coats, said the UK's Pensions Regulator has issued warning notices over its pension plans.
The regulator has found the Brunel Holdings Pension Scheme and the Staveley Scheme were insufficiently resourced and the warning notices say a "financial support direction" (FSD) may be reasonable.
"The board is reviewing the warning notices with its advisers," GPG said in a statement. "It is too early to be certain that any FSDs will ultimately be issued or of the quantum of any required support for the schemes."
The regulator's determinations panel will now consider whether to issue an FSD and, if it does, the matter may then be considered by the regulator's upper tribunal, GPG said. Any hearing before the determinations panel is unlikely to take place before the second half of 2014.
The regulator has previously advised that it wouldn't be able to conclude its investigation into whether to issue a warning notice over the Coats Pension Plan before December 31. The complex probe into the pension schemes is hindering GPG's plans to return capital to shareholders.
Shares in GPG last traded at 59.5 cents.