A £650m government loan to set up the National Employment Savings Trust (NEST) will be "unrecoverable" as the agreement allows the terms of the loan to be renegotiated, a lawyer said.
The agreement, obtained by IFAOnline's sister title Professional Pensions through a Freedom of Information request, shows the Department for Work and Pensions (DWP) has not asked for any security from NEST on the loan. NEST Corporation will be able to renegotiate the agreement if it breaches its lending terms. Pinsent Masons head of strategic development for pensions Robin Ellison said: "It is unrecoverable because there is no security for it. They cannot close NEST down so in real life it is unenforceable. There is no sanction. "Normally if you do not meet your obligations you eit...
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