The Payment and Electronic Money Institution Insolvency Regulations 2021

Powers of the court

10.—(1) On an application for a special administration order the court may—

(a) grant the application in accordance with paragraph (2);

(b) dismiss the application;

(c) adjourn the hearing (generally or to a specified date);

(d) make an interim order;

(e) on the application of the FCA, treat the application as an application by the FCA for Schedule B1 administration in accordance with section 359(1) of the FSMA 2000(1);

(f) make any other order which the court thinks appropriate.

(2) The court may make a special administration order if it is satisfied that the institution is incorporated in, or formed under the law of, England and Wales, or Scotland—

(a) on the application of persons listed in regulation 8(1)(a) to (e) or the FCA, that Ground A or Ground B in regulation 9 is satisfied, or

(b) on the application of the Secretary of State, if satisfied that Grounds B and C in regulation 9 are satisfied.

(3) Where the application for a special administration order is made by members of the institution as contributories on the basis that Ground B in regulation 9 is satisfied, the court must make a special administration order if it is of the opinion that—

(a) the applicants are entitled to relief either by a special administration order being made in respect of the institution or by some other means, and

(b) in the absence of any other remedy it would be fair that the special administration order be made in respect of the institution.

(4) But paragraph (3) does not apply if the court is also of the opinion that an alternative remedy is available to the applicants and that they are acting unreasonably in applying for a special administration order instead of pursuing that other remedy.

(5) A special administration order takes effect in accordance with its terms.

(1)

Section 359(1) was amended by the Financial Services Act 2012 (c. 21).