Financial Services and Markets Act 2000

215[F1Rights of the scheme in insolvency]U.K.

This adran has no associated Nodiadau Esboniadol

[F2(1)The compensation scheme may make provision—

(a)about the effect of a payment of compensation under the scheme on rights or obligations arising out of matters in connection with which the compensation was paid;

(b)giving the scheme manager a right of recovery in respect of those rights or obligations.]

(2)Such a right of recovery conferred by the scheme does not, in the event of [F3a person's insolvency], exceed such right (if any) as the claimant would have had in that event.

[F4(2A)Any payment made by the scheme manager under section 214B(2) in connection with the exercise of a stabilisation power in respect of a bank, building society or credit union is to be treated as a debt due to the scheme manager from that bank, building society or (as the case may be) credit union.

(2B)In subsection (2)—

  • “bank” has the meaning given in section 2 of the Banking Act 2009;

  • “building society” has the meaning given in the Building Societies Act 1986;

  • “credit union” means a credit union within the meaning of—

    (a)

    the Credit Unions Act 1979; or

    (b)

    article 2 of the Credit Unions (Northern Ireland) Order 1985.]

(3)If a person other than the scheme manager [F5makes an administration application under Schedule B1 to the 1986 Act or [F6Schedule B1 to] the 1989 Order] in relation to [F7—

(a)a company or partnership which is a relevant person; or

(b)a body corporate or unincorporated association which is a relevant exchange;

the scheme manager has the same rights as are conferred on the regulators by section 362.]

[F8(3A)In subsection (3) the reference to making an administration application includes a reference to—

(a)appointing an administrator under paragraph 14 or 22 of Schedule B1 to the 1986 Act [F9or paragraph 15 or 23 of Schedule B1 to the 1989 Order], or

(b)filing with the court a copy of notice of intention to appoint an administrator under [F10any] of those paragraphs.]

(4)If a person other than the scheme manager presents a petition for the winding up of a body which is a relevant person [F11or relevant exchange] , the scheme manager has the same rights as are conferred on the [F12regulators] by section 371.

(5)If a person other than the scheme manager presents a bankruptcy petition to the court in relation to an individual who, or an entity which, is a relevant person, the scheme manager has the same rights as are conferred on the [F12regulators] by section 374.

(6)Insolvency rules may be made for the purpose of integrating any procedure for which provision is made as a result of subsection (1) into the general procedure on the administration of a company or partnership or on a winding-up, bankruptcy or sequestration.

(7)“Bankruptcy petition” means a petition to the court—

(a)under section 264 of the 1986 Act or Article 238 of the 1989 Order for a bankruptcy order to be made against an individual;

(b)under section [F132 or 5 of the 2016] Act for the sequestration of the estate of an individual; or

(c)under section 6 of the [F142016] Act for the sequestration of the estate belonging to or held for or jointly by the members of an entity mentioned in subsection (1) of that section.

(8)“Insolvency rules” are—

(a)for England and Wales, rules made under sections 411 and 412 of the 1986 Act;

(b)for Scotland, rules made by order by the Treasury, after consultation with the Scottish Ministers, for the purposes of this section; and

(c)for Northern Ireland, rules made under Article 359 of the 1989 Order and section 55 of the M1Judicature (Northern Ireland) Act 1978.

(9)F15... “the 1986 Act”, “the 1989 Order” [F16, “the 2016 Act”] and “court” have the same meaning as in Part XXIV.

Textual Amendments

F1S. 215: heading substituted (17.2.2009 for certain purposes and 21.2.2009 otherwise) by virtue of Banking Act 2009 (c. 1), ss. 175(4), 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch.

F2S. 215(1) substituted (17.2.2009 for certain purposes and 21.2.2009 otherwise) by Banking Act 2009 (c. 1), ss. 175(2), 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch.

F3Words in s. 215(2) substituted (17.2.2009 for certain purposes and 21.2.2009 otherwise) by Banking Act 2009 (c. 1), ss. 175(3), 263(1)(2) (with s. 247); S.I. 2009/296, arts. 2, 3, Sch.

F5Words in s. 215(3) substituted (15.9.2003) by Enterprise Act 2002 (c. 40), ss. 248(3), 279, Sch. 17 para. 54(2); S.I. 2003/2093, art. 2(1), Sch. 1 (subject to arts. 1(3)-(5), 3-8 (as amended by S.I. 2003/2332, art. 2))

F7Words in s. 215(3) substituted (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 2 para. 25(2) (with reg. 7)

F11Words in s. 215(4) inserted (29.6.2017 for specified purposes, 3.7.2017 for specified purposes, 31.7.2017 for specified purposes, 3.1.2018 in so far as not already in force) by The Financial Services and Markets Act 2000 (Markets in Financial Instruments) Regulations 2017 (S.I. 2017/701), reg. 1(2)(3)(4)(6), Sch. 2 para. 25(3) (with reg. 7)

F12Word in s. 215 substituted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 10 para. 5 (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

Modifications etc. (not altering text)

C4S. 215(3)(4)(6) applied (with modifications) (6.4.2001 for E.W.S and 13.9.2004 for N.I.) by S.I. 2001/1090, regs. 1, 6; S.R. 2004/307, reg. 6

Commencement Information

I1S. 215 wholly in force at 18.6.2001; s. 215 not in force at Royal Assent see s. 431(2); s. 215(6)(8)(9) in force at 25.2.2001 by S.I. 2001/516, art. 2(a), Sch. Pt. 1; s. 215 in force in so far as not already in force at 18.6.2001 by S.I. 2001/1820, art. 2, Sch.

Marginal Citations