The Investment Bank Special Administration Regulations 2011

  1. Introductory Text

  2. 1.Citation and commencement

  3. 2.Interpretation

  4. 3.Overview

  5. 4.Special administration order

  6. 5.Application

  7. 6.Grounds for applying

  8. 7.Powers of the court

  9. 8.Notice to appropriate regulator of preliminary steps to other insolvency proceedings

  10. 9.Application where investment bank is a deposit-taking bank

  11. 10.Special administration objectives

  12. 10A.Objective 1—duty of administrator to work with the FSCS

  13. 10B.Objective 1—transfer of client assets

  14. 10C.Restrictions on partial property transfers—general provision

  15. 10D.Restrictions on partial property transfers—set-off and netting arrangements

  16. 10E.Restrictions on partial property transfers—security interests

  17. 10F.Restrictions on partial property transfers—capital market arrangements

  18. 10G.Restrictions on partial property transfers—financial markets

  19. 10H.Objective 1—post-administration reconciliation of accounts and records relating to client money

  20. 10I.Objective 1—removal of right to interest on unsecured claims for the return of client money

  21. 11.Objective 1 – distribution of client assets

  22. 12.Objective 1 - shortfall in client assets held in omnibus account

  23. 12A.Objective 1—distribution of client money

  24. 12B.Objectives 1 and 3—client assets (other than client money) which the administrator is unable to return to clients

  25. 12C.Objectives 1 and 3—client money which the administrator is unable to return to clients

  26. 12D.Powers of the court on application to set a hard bar date

  27. 12E.Bar date notices—procedural requirements

  28. 12F.Costs of making a claim

  29. 13.Objective 2 – engaging with market infrastructure bodies and the Authorities

  30. 14.Continuity of supply

  31. 15.General powers, duties and effect

  32. 16.Appropriate regulator direction

  33. 17.Administrator's proposals in the event of Appropriate regulator direction

  34. 18.Revision of proposals in the event of Appropriate regulator direction

  35. 19.Appropriate regulator direction withdrawn

  36. 19A.Responsibility for certain costs of the administration

  37. 20.Successful rescue

  38. 21.Dissolution or voluntary arrangement

  39. 22.Special administration order as an alternative order

  40. 23.Disqualification of directors

  41. 24.Limited liability partnerships

  42. 25.Partnerships

  43. 26.Northern Irish equivalent enactments

  44. 27.Modifications and consequential amendments to legislation

  45. Signature

    1. SCHEDULE 1

      Special administration (bank insolvency)

      1. 1.This Schedule provides for a procedure known as special administration...

      2. 2.A special administration (bank insolvency) order is an order appointing...

      3. 3.A special administration (bank insolvency) order is to be treated...

      4. 4.(1) An administrator appointed under a special administration (bank insolvency)...

      5. 5.(1) The provisions of the Insolvency Act as applied by...

      6. 6.(1) The provisions of Part 2 of the Act (bank...

      7. 7.Section 120 of the Act is applied with the following...

      8. 8.(1) Section 135 of the Insolvency Act is applied with...

      9. 9.In this Schedule— “eligible depositor” has the meaning set out...

    2. SCHEDULE 2

      Special administration (bank administration)

      1. 1.General provisions

      2. 2.A special administration (bank administration) order is an order appointing...

      3. 3.(1) An administrator appointed under a special administration (bank administration)...

      4. 4.An administrator appointed under a special administration (bank administration) order...

      5. 5.A special administration (bank administration) order is to be treated...

      6. 6.Application of Part 3 of the Act and the Insolvency Act

      7. 7.Statement of proposals

      8. 8.(1) The statement is to be agreed with the Bank...

      9. 9.(1) The administrator shall send the statement to—

      10. 10.Meeting of creditors and clients to approve statement

      11. 11.Revision to the statement of proposals (Objective A not yet achieved)

      12. 12.Revision to the statement of proposals (Objective A achieved and no regulation 16 direction)

      13. 13.Revision to the statement of proposals (Objective A achieved and regulation 16 direction has not been withdrawn)

      14. 14.Powers of the court

      15. 15.Ending of special administration (bank administration) (rescue)

      16. 16.Ending of special administration (bank administration) (dissolution or voluntary arrangement

      17. 17.Interpretation

    3. SCHEDULE 3

      Application of these Regulations to limited liability partnerships

      1. 1.In this Schedule, “the 2001 Regulations” means the Limited Liability...

      2. 2.These Regulations apply where the investment bank is a limited...

      3. 3.(1) Those provisions of the Insolvency Act, as applied and...

      4. 4.(1) The provisions of the Disqualification Act shall apply with...

      5. 5.Application to Scotland

      6. 6.Subordinate legislation

    4. SCHEDULE 4

      Application of these Regulations to partnerships

      1. 1.In this Schedule, “the 1994 Order” means the Insolvent Partnerships...

      2. 2.These Regulations apply where the investment bank is a partnership...

      3. 3.In the application of these Regulations and the Disqualification Act...

      4. 4.(1) The provisions of Schedule B1 as applied by regulation...

      5. 5.(1) The provisions of the Insolvency Act other than those...

    5. SCHEDULE 5

      Table of enactments referred to in these Regulations together with the equivalent enactment having effect in relation to Northern Ireland

    6. SCHEDULE 6

      Modifications and consequential amendments

      1. PART 1

        1. 1.(1) Where this Part of this Schedule applies, the enactments...

        2. Primary Legislation

        3. Secondary Legislation

      2. PART 2 Specific modifications

        1. 2.Where this Part of this Schedule applies, the enactments set...

        2. 3.Financial Services and Markets Act 2000

        3. 4.Pensions Act 2004

        4. 5.Companies Act 2006

        5. 6.Land Registration Rules 2003

        6. 7.Credit Institutions (Reorganisation and Winding Up) Regulations 2004

      3. PART 3 Consequential amendments

        1. 8.Companies Act 1985

        2. 9.Finance Act 1986

  47. Explanatory Note