17.—(1) The notice of appointment under paragraph 46(2)(b) to be given by the administrator as soon as is reasonably practicable after appointment—
(a)must be gazetted, and
(b)may be advertised in such other manner as the administrator thinks fit.
(2) In addition to the standard contents, the notice must state that an administrator has been appointed and the date of the appointment.
(3) The administrator must as soon as is practicable after appointment give notice of the appointment to—
(a)any enforcement officer who, to the administrator’s knowledge, is charged with execution or other legal process against the institution,
(b)any person who, to the administrator’s knowledge, has distrained against the institution, and
(c)any supervisor of a voluntary arrangement under Part 1 of the IA 1986.
(4) The administrator shall send the notice of appointment to the registrar of companies within seven days of the date of the order appointing them.
(5) Any notice required to be sent by the administrator under these Rules or under Schedule B1 must—
(a)contain details of the court where the proceedings are and the relevant court reference number,
(b)contain the full name, registered address, registered number, all trading names and principal trading office of the institution,
(c)contain the name, business address and IP number of the person or persons appointed as administrator and the date of their appointment, and
(d)be authenticated and dated by the administrator.
Commencement Information
I1Rule 17 in force at 12.11.2021, see rule 2
18.—(1) In this Part, “relevant person” has the meaning given to it in paragraph 47(3) and “nominated person” is the relevant person who has been required by the administrator to make out and deliver a statement of affairs to the administrator.
(2) The administrator must deliver notice to each relevant person who the administrator deems appropriate requiring that relevant person to make out and deliver a statement of the institution’s affairs.
(3) The notice must be headed “notice requiring statement of affairs” and must inform each of the nominated persons—
(a)that the proceedings are being held in the court and the court reference number,
(b)of the full name, registered address and registered number of the institution,
(c)of the name and the business address of the administrator,
(d)of the name and addresses of all others (if any) to whom the same notice has been sent,
(e)of the date by which the statement must be delivered to the administrator, being before the end of the period of eleven days beginning with the day on which the nominated person receives notice of the requirement,
(f)of the effect of paragraph 48(4), and
(g)of the application to that nominated person, and to each other relevant person, of section 235 of the IA 1986(1).
(4) The administrator must, on request, provide details to the nominated person as to how the statement should be prepared.
Commencement Information
I2Rule 18 in force at 12.11.2021, see rule 2
19.—(1) The statement of the institution’s affairs must be headed “Statement of affairs” and must—
(a)identify the institution immediately below the heading, and
(b)state that it is a statement of the affairs of the institution on a specified date, being the date on which it entered special administration.
(2) The statement of affairs must contain (in addition to the matters required by paragraph 47(2))—
(a)a summary of the assets of the institution, setting out the book value and the estimated realisable value of—
(i)any assets subject to a fixed charge,
(ii)any assets subject to a floating charge,
(iii)any uncharged assets, and
(iv)the total value of all the assets available for preferential creditors,
(b)a summary of the liabilities of the institution, setting out—
(i)the amount of preferential debts,
(ii)an estimate of the deficiency with respect to preferential debts or the surplus available after paying the preferential debts,
(iii)an estimate of the prescribed part, if applicable,
(iv)an estimate of the total assets available to pay debts secured by floating charges,
(v)the amount of debts secured by floating charges,
(vi)an estimate of the deficiency with respect to debts secured by floating charges or the surplus available after paying the debts secured by fixed or floating charges,
(vii)the amount of unsecured debts (excluding preferential debts),
(viii)an estimate of the deficiency with respect to unsecured debts or the surplus available after paying unsecured debts,
(ix)any issued and called-up capital, and
(x)an estimate of the deficiency with respect to, or surplus available to, members of the institution,
(c)a list of the institution’s creditors with the further particulars required by paragraph (3) indicating—
(i)any creditors under hire-purchase, chattel leasing or conditional sales agreements, and
(ii)any creditors claiming retention of title over property in the institution’s possession, and
(d)the name and address of each member of the institution and the number, nominal value and other details of the shares held by each member.
(3) Subject to paragraphs (4) and (5), the list of creditors required by paragraph 47(2) and paragraph (2)(c) of this rule must contain the following details—
(a)the name and postal address of the creditor,
(b)the amount of the debt owed to the creditor,
(c)details of any security held by the creditor,
(d)the date on which the security was given, and
(e)the value of any such security.
(4) Paragraph (5) applies where the particulars required by paragraph (3) relate to creditors who are either-
(a)employees or former employees of the institution, or
(b)consumers claiming amounts paid in advance for the supply of goods or services.
(5) Where this paragraph applies—
(a)the statement of affairs itself must state—
(i)the number of employees or former employees of the institution and the total of the debts owed to them, and
(ii)the number of consumers claiming amounts paid in advance for the supply of goods or services and the total of the debts owed to them, and
(b)the particulars required by paragraph (3) must be set out in a separate schedule to the statement of affairs for each of the employees, former employees and consumers referred to in paragraphs (4)(a) and (b).
(6) Subject to paragraph (7), the administrator must not—
(a)disclose to any person any schedule or any of the details contained in any schedule provided under paragraph (5)(b),
(b)send or deliver to any person (including the registrar of companies) any schedule provided under paragraph (5)(b) at the same time as sending or delivering the statement of affairs, or
(c)include a schedule or any of the details contained in any schedule provided under paragraph (5)(b) in a statement of proposals or revised statement of proposals under rule 26 or rule 32.
(7) Following a written request from the FCA, the administrator must, as soon as is reasonably practicable, send or deliver to the FCA a copy of any schedule provided under paragraph (5)(b).
Commencement Information
I3Rule 19 in force at 12.11.2021, see rule 2
20.—(1) In addition to the matters required by paragraph 47(2) and under rule 19, the statement of affairs must include particulars of the asset pool including the relevant funds held by the institution.
(2) The particulars must include—
(a)subject to paragraph (3), the names and contact details of each customer of the institution and each such customer’s relevant funds claim,
(b)details of the asset pool including details of—
(i)the safeguarding measures employed by the institution and the amount of relevant funds safeguarded in accordance with each of such measures,
(ii)any relevant funds invested (in the case of a payment institution) in secure, liquid assets approved by the FCA in accordance with regulation 23(6) of the PSR 2017(2) or (in the case of an electronic money institution) in secure, liquid low-risk assets in accordance with regulation 21(2) of the EMR 2011(3),
(iii)any insurance policy covering relevant funds,
(iv)the accounts in which relevant funds are held,
(v)any guarantee given by an authorised insurer or authorised credit institution covering relevant funds, and
(c)details as to any security interest held by the institution or another person in respect of the asset pool.
(3) Where the particulars required by paragraph (2)(a) relate to customers who are individuals—
(a)the particulars must be set out in a separate schedule from the statement of affairs, and
(b)the statement of affairs must state the number of customers who are individuals and the total of the debts owed to them.
(4) Subject to paragraph (5), the administrator must not—
(a)disclose to any person any schedule or any of the details contained in any schedule provided under paragraph (3)(a),
(b)send or deliver to any person (including the registrar of companies) any schedule provided under paragraph (3)(a) at the same time as sending or delivering the statement of affairs, or
(c)include any schedule or any of the details contained in any schedule provided under paragraph (3)(a) in a statement of proposals or revised statement of proposals under rule 26 or rule 32.
(5) Following a written request from the FCA, the administrator must, as soon as is reasonably practicable, send or deliver to the FCA a copy of any schedule provided under paragraph (3)(a).
Commencement Information
I4Rule 20 in force at 12.11.2021, see rule 2
21.—(1) The statement of affairs must be verified by a statement of truth by the nominated person.
(2) The administrator may require any relevant person to submit a statement of concurrence.
(3) Where the administrator requires a statement of concurrence, the nominated person making the statement of affairs must be informed of that fact.
(4) The nominated person must deliver the statement of affairs together with the statement of truth, together with a copy, to the administrator.
(5) The nominated person must also deliver a copy of the statement of affairs to every person who has been required to submit a statement of concurrence.
(6) The relevant person required to submit a statement of concurrence must deliver the statement of concurrence together with a copy before the end of the period of five business days (or such other period as the administrator may agree) beginning on the day on which the statement of affairs being concurred with is received by that relevant person.
(7) A statement of concurrence—
(a)must identify the institution, and
(b)may be qualified in respect of matters dealt with by the statement of affairs, where the relevant person making the statement of concurrence-
(i)is not in agreement with the nominated person,
(ii)considers the statement of affairs to be erroneous or misleading, or
(iii)is without the direct knowledge necessary for concurring with it.
(8) Subject to paragraph (9) and rule 22, the administrator must as soon as is reasonably practicable deliver a copy of the statement of affairs and any statement of concurrence to the registrar of companies and file them with the court.
(9) The administrator must not deliver to the registrar of companies with the statement of affairs and any statement of concurrence any schedule required by rule 19(5)(b) or rule 20(3)(a).
Commencement Information
I5Rule 21 in force at 12.11.2021, see rule 2
22.—(1) Where the administrator thinks that it would prejudice the conduct of the special administration (or might reasonably be expected to lead to violence against any person) for the whole or part of a statement of affairs or a statement of concurrence to be disclosed, the administrator may apply to the court for an order of limited disclosure in respect of the whole or any part of a statement of affairs or a statement of concurrence.
(2) The court may, on such application, order that the statement of affairs or any statement of concurrence or, as the case may be, a specified part of either must not be filed with the registrar of companies.
(3) The administrator must, as soon as is reasonably practicable, deliver a copy of the order, the statement of affairs and any statement of concurrence (to the extent provided by the order) to the registrar of companies.
(4) If a creditor or a customer seeks disclosure of a statement of affairs, a statement of concurrence or a specified part of either in relation to which an order has been made under this rule, that person may apply to the court for an order that the administrator disclose it or a specified part of it.
(5) An application under paragraph (4) must be supported by written evidence in the form of a witness statement.
(6) The applicant must give the administrator notice of the application at least three business days before the hearing.
(7) The court may make any order for disclosure subject to [F1such] conditions as to:
(a)confidentiality,
(b)duration,
(c)the scope of the order in the event of any change of circumstances, or
[F2(d)other matters,
as it thinks just.]
(8) If there is a material change in circumstances rendering the limit on disclosure or any part of it unnecessary, the administrator must, as soon as is reasonably practicable after the change, apply to the court for the order or any part of it to be rescinded.
(9) The administrator must, as soon as is reasonably practicable after the making of an order under paragraph (8), file a copy of the statement of affairs and any statement of concurrence to the extent provided by the order with the registrar of companies.
(10) When the statement of affairs or a statement of concurrence is filed in accordance with paragraph (9), the administrator must, where they have sent a statement of proposals under paragraph 49, provide the creditors and the customers with a copy or summary of the statement of affairs and any statement of concurrence as filed.
(11) The provisions of CPR Part 31(4) do not apply to an application under this rule.
Textual Amendments
F1Word in rule 22(7) substituted (10.8.2022) by The Payment and Electronic Money Institution Insolvency (England and Wales) (Amendment) Rules 2022 (S.I. 2022/847), rules 1(2), 2(2)(a)
F2Rule 22(7)(d) and words substituted for rule 22(7)(d) (10.8.2022) by The Payment and Electronic Money Institution Insolvency (England and Wales) (Amendment) Rules 2022 (S.I. 2022/847), rules 1(2), 2(2)(b)
Commencement Information
I6Rule 22 in force at 12.11.2021, see rule 2
23.—(1) The power of the administrator under paragraph 48(2) to revoke a requirement to submit a statement of affairs or to extend the period within which it must be submitted may be exercised at the administrator’s own discretion, or at the request of any nominated person who has been required to provide the statement of affairs.
(2) The nominated person may, if they request a revocation or extension and it is refused by the administrator, apply to the court for it and when such an application is made, the period referred to in paragraph 48(1) and rule 18(3)(e) is suspended pending the court’s decision.
(3) The court may, if it thinks that no sufficient cause is shown for the application, dismiss it without giving notice to any other party other than the applicant.
(4) If the application is not dismissed under paragraph (3), the court must fix a venue for it to be heard, and give notice to the relevant person and to the FCA accordingly.
(5) Where an application has been made under paragraph (2), the FCA may appear and be heard at the hearing or may make written representations.
(6) The applicant must, at least fourteen days before the hearing, deliver to the administrator a notice stating the venue and accompanied by a copy of the application and of any evidence on which the applicant intends to rely.
(7) The administrator may appear and be heard on the application and, whether or not they appear, the administrator may file a written report of any matters which they consider ought to be drawn to the court’s attention.
(8) If a report is filed under paragraph (7), a copy of it must be delivered by the administrator to the applicant not later than five business days before the hearing.
(9) Sealed copies of any order made on the application must be delivered by the court to the applicant and the administrator.
(10) On any application under this rule, the applicant’s costs must be paid in any event by the applicant and, unless the court otherwise orders, no allowance towards them must be made as an expense of the special administration.
Commencement Information
I7Rule 23 in force at 12.11.2021, see rule 2
24.—(1) A nominated person making the statement of affairs or a relevant person making a statement of concurrence must be allowed, and paid by the administrator as an expense of the special administration, any expenses incurred by the nominated person or relevant person in so doing which the administrator considers reasonable.
(2) Any decision by the administrator under this rule is subject to appeal to the court.
(3) Nothing in this rule relieves a nominated person or a relevant person from any obligation with respect to:
(a)the preparation, verification and submission of the statement of affairs or a statement of concurrence, or
(b)the provision of information to the administrator.
Commencement Information
I8Rule 24 in force at 12.11.2021, see rule 2
25.—(1) Any of the persons specified in section 235(3) of the IA 1986 must, at the request of the administrator, provide the administrator with the institution’s accounts as at such date and for such period as the administrator may specify.
(2) The period specified may begin from a date up to 3 years preceding the date the institution entered special administration, or from an earlier date to which the audited accounts of the institution were last prepared.
(3) The court may, on the administrator’s application, require accounts for an earlier period.
(4) Rule 24 applies (with the necessary modification) in relation to the accounts to be provided under this rule as it applies to the statement of affairs.
(5) The accounts must (if the administrator so requires) be verified by a statement of truth and (whether or not so verified) be delivered within twenty-one days of the request under paragraph (1) (or such longer period as the administrator may allow).
Commencement Information
I9Rule 25 in force at 12.11.2021, see rule 2
Section 235 was amended by S.I. 2011/245. There are other amending instruments but none is relevant.
S.I. 2017/752, amended by S.I. 2017/1173, 2018/1021. There are other amending instruments but none is relevant.
S.I. 2011/99, amended by S.I. 2013/3115, 2015/575, 2017/252, 2017/1173, 2018/1021. There are other amending instruments but none is relevant.
Part 31 was substituted by S.I. 2008/2178.