The Risk Transformation Regulations 2017

Reallocations pursuant to mistakes in the records and accounts

56.—(1) This regulation applies where a protected cell company proposes to amend its records and accounts in accordance with regulation 52(1)(b), 53(1)(b) or 54(1)(b) so as to reallocate an asset, liability or obligation from one part of the protected cell company to another part of the protected cell company.

(2) The protected cell company must give written notice of the proposed amendment to the following persons before the beginning of a period of 10 working days ending on the day the amendment is made—

(a) the FCA;

(b) the PRA;

(c) any undertaking from whom the protected cell company has assumed a risk on behalf of a relevant part;

(d) any person to whom the protected cell company has a liability or obligation which has been incurred by the protected cell company on behalf of a relevant part or, so far as the protected cell company is aware, is attributable to a relevant part;

(e) any person holding an investment issued by the protected cell company on behalf of a relevant part.

(3) In paragraph (2), a “relevant part” is a part of the protected cell company referred to in paragraph (1) or, where such a part is a cell, any other cell which has entered into enforceable arrangements with that cell.

(4) The protected cell company may apply to court for an order abridging the time period of 10 working days referred to in paragraph (2) or dispensing with the requirement to notify some or all of the persons mentioned in that paragraph.

(5) On an application made pursuant to paragraph (4), the court may make any order it sees fit.

(6) A person may apply to court for an order—

(a) restraining the protected cell company from making the amendment referred to in paragraph (1); or

(b) if the amendment has already taken place, declaring the amendment to have no effect.

(7) On an application made pursuant to paragraph (6), the court may—

(a) make an order referred to in paragraph (6); or

(b) make any other order the court sees fit (including an order as to the amendment of the protected cell company’s records and accounts).

(8) In this regulation, “court” means the High Court or, in Scotland, the Court of Session.