The Payment and Electronic Money Institution Insolvency (England and Wales) Rules 2021

1. Introductory Text

2. PART 1 Introductory Provisions

   1. 1. Citation

   2. 2. Commencement

   3. 3. Extent

   4. 4. Interpretation

   5. 5. Application of Rules

3. PART 2

   1. Application for special administration order

      1. 6. Content of application

      2. 7. Statement of proposed administrator

      3. 8. Witness statement in support of application

      4. 9. Filing of application

      5. 10. Service of application

      6. 11. Proof of service

      7. 12. Further notification

      8. 13. The hearing

      9. 14. The special administration order

      10. 15. Costs

      11. 16. Notice of special administration order

4. PART 3 Process of Special Administration

   1. CHAPTER 1 Notice of appointment and statement of affairs

      1. 17. Notification and advertisement of administrator’s appointment

      2. 18. Notice requiring statement of affairs

      3. 19. Statement of affairs: content

      4. 20. Details of the asset pool, safeguarding measures and reconciliation

      5. 21. Verification, filing and statement of concurrence

      6. 22. Limited disclosure

      7. 23. Release from duty to submit statement of affairs

      8. 24. Expenses of statement of affairs

      9. 25. Submission of accounts

   2. CHAPTER 2 Statement of proposals

      1. 26. Administrator’s proposals

      2. 27. Limited disclosure of the statement of proposals

   3. CHAPTER 3 Initial meeting to consider proposals

      1. 28. Initial meeting

      2. 29. Notice to officers

      3. 30. Business of the initial meeting

      4. 31. Adjournment of meeting to approve the statement of proposals

      5. 32. Revision of the statement of proposals

      6. 33. Meeting to approve the revised statement of proposals

      7. 34. Notice to creditors and customers

   4. CHAPTER 4 Meetings generally

      1. 35. Meetings generally

      2. 36. Venue

      3. 37. Notice of meeting by individual notice: when and where sent

      4. 38. Notice of meeting by individual notice: content and accompanying documents

      5. 39. Notice of meeting by advertisement only

      6. 40. Content of notice for meetings

      7. 41. Gazetting and advertisement of meetings

      8. 42. Non-receipt of notice of meeting

      9. 43. Requisition of meetings

      10. 44. Expenses of requisitioned meetings

      11. 45. Quorum at meetings

      12. 46. Chair at meetings

      13. 47. Adjournment by chair

      14. 48. Adjournment in absence of chair

      15. 49. Claims, proofs and proxies in adjournment

      16. 50. Suspension

      17. 51. Venue and conduct of company meetings

   5. CHAPTER 5 Entitlement to vote at meetings

      1. 52. Entitlement to vote (creditors)

      2. 53. Calculation of voting rights (creditors)

      3. 54. Calculation of voting rights: special cases (creditors)

      4. 55. Procedure for admitting creditors’ claims for voting

      5. 56. Entitlement to vote (customers)

      6. 57. Procedure for admitting customers’ relevant funds claims for voting

      7. 58. Voting at meetings of creditors and customers

      8. 59. Requisite majorities

      9. 60. Requisite majorities at contributories’ meetings

      10. 61. Appeals against decisions under this Chapter

   6. CHAPTER 6 Correspondence and remote attendance

      1. 62. Correspondence instead of meetings

      2. 63. Remote attendance at meetings conducted in accordance with section 246A

      3. 64. Action where person excluded

      4. 65. Indication to excluded person

      5. 66. Complaint

   7. CHAPTER 7 Records, returns and reports

      1. 67. Minutes

      2. 68. Returns or reports of meetings

   8. CHAPTER 8 The creditors’ committee

      1. 69. Constitution of creditors’ committee

      2. 70. Formalities of establishment

      3. 71. Functions and meetings of the creditors’ committee

      4. 72. The chair at meetings

      5. 73. Quorum

      6. 74. Creditors’ committee members’ representatives

      7. 75. Resignation

      8. 76. Termination of membership

      9. 77. Removal

      10. 78. Vacancies

      11. 79. Procedure at meetings

      12. 80. Remote attendance at meetings of creditors’ committee

      13. 81. Procedure for requests that a place for a meeting should be specified

      14. 82. Resolutions of creditors’ committees by post

      15. 83. Information from administrator

      16. 84. Expenses of members

      17. 85. Members dealing with the institution

      18. 86. Formal defects

   9. CHAPTER 9 Progress reports

      1. 87. Content of progress report

      2. 88. Delivering a progress report

   10. CHAPTER 10 Proxies and corporate representation

       1. 89. Definition of proxy

       2. 90. Issue and use of forms

       3. 91. Use of proxies at meetings

       4. 92. Retention of proxies

       5. 93. Right of inspection

       6. 94. Proxy-holder with financial interest

       7. 95. Corporate representation

   11. CHAPTER 11 Disposal of charged property

       1. 96. Application to dispose of charged property

5. PART 4 Expenses of the special administration

   1. 97. Expenses of voluntary arrangement

   2. 98. Expenses to be paid out of the institution’s assets

   3. 99. Expenses to be paid out of the relevant funds

   4. 100. Pre-administration costs

   5. 101. Allocation of expenses to be paid from the relevant funds

6. PART 5 Relevant funds claims

   1. 102. Content of relevant funds claim

   2. 103. Debt in a foreign currency

   3. 104. Costs of making a claim

   4. 105. New administrator appointed

   5. 106. Admission and rejection of relevant funds claim

   6. 107. Appeal against decision on relevant funds claim

   7. 108. Withdrawal or variation of relevant funds claim

   8. 109. Exclusion of relevant funds claim by the court

7. PART 6 Objective 1

   1. CHAPTER 1 Setting a bar date and further notifications

      1. 110. Notice of the bar date

      2. 111. Notifying potential claimants after bar date has passed

   2. CHAPTER 2 Distribution plan

      1. 112. Distribution plan

      2. 113. Approval by the creditors’ committee

      3. 114. Approval by the court

      4. 115. Treatment of late claimants

8. PART 7 Distributions to creditors

   1. CHAPTER 1 Application

      1. 116. Distribution to creditors

      2. 117. Debts of institution to rank equally

      3. 118. Supplementary provisions as to dividend

      4. 119. Division of unsold assets

   2. CHAPTER 2 Proofs of debt

      1. 120. Proving a debt

      2. 121. Costs of proving

      3. 122. Administrator to allow inspection of proofs

      4. 123. New administrator appointed

      5. 124. Admission and rejection of proofs for dividend

      6. 125. Appeal against decision on proof

      7. 126. Withdrawal or variation of proof

      8. 127. Exclusion of proof by the court

   3. CHAPTER 3 Quantification of claims

      1. 128. Estimate of quantum

      2. 129. Negotiable instruments

      3. 130. Secured creditors

      4. 131. Discounts

      5. 132. Mutual credit and set-off

      6. 133. Debt in a foreign currency

      7. 134. Payments of a periodical nature

      8. 135. Interest

      9. 136. Debt payable at a future time

      10. 137. Value of security

      11. 138. Surrender for non-disclosure

      12. 139. Redemption by administrator

      13. 140. Test of security’s value

      14. 141. Realisation of security by creditor

      15. 142. Notice of proposed distribution

      16. 143. Admission or rejection of proofs

      17. 144. Postponement or cancellation of dividend

      18. 145. Declaration of a dividend

      19. 146. Notice of declaration of a dividend

      20. 147. Payments of dividend and related matters

      21. 148. Notice of no dividend or no further dividend

      22. 149. Proof altered after payment of dividend

      23. 150. Secured creditors

      24. 151. Disqualification from dividend

      25. 152. Assignment of right to dividend

      26. 153. Debt payable at a future time

9. PART 8 The Administrator

   1. CHAPTER 1 Powers of the administrator

      1. 154. General powers

      2. 155. Powers of disclaimer

      3. 156. Communication of disclaimer to persons interested

      4. 157. Additional notices

      5. 158. Records

      6. 159. Application by interested party

      7. 160. Interest in property to be declared on request

      8. 161. Disclaimer presumed valid and effective

      9. 162. Application for the exercise of court’s powers under section 181

   2. CHAPTER 2 Fixing of remuneration

      1. 163. Fixing of remuneration

      2. 164. Recourse to meeting of creditors and customers

      3. 165. Recourse to the court

      4. 166. Creditors’ and customers’ request for further information

      5. 167. Claim that remuneration is excessive

      6. 168. Review of remuneration

      7. 169. Remuneration of new administrator

      8. 170. Apportionment of set fee remuneration

   3. CHAPTER 3 Replacing the administrator

      1. 171. Grounds for resignation

      2. 172. Notice of intention to resign

      3. 173. Notice of resignation

      4. 174. Application to court to remove administrator from office

      5. 175. Notice of vacation of office when administrator ceases to be qualified

      6. 176. Administrator deceased

      7. 177. Application to replace

      8. 178. Notification and advertisement of appointment of replacement administrator

      9. 179. Notification and advertisement of appointment of joint administrator

      10. 180. Notification of new administrator

      11. 181. Administrator’s duties on vacating office

10. PART 9 End of special administration

    1. 182. Final progress reports

    2. 183. Application to court by administrator

    3. 184. Application to court by creditor

    4. 185. Notification by administrator of court order

    5. 186. Moving from special administration to dissolution

11. PART 10 Court procedure and practice

    1. CHAPTER 1 Application of the CPR

       1. 187. Principal court rules and practice to apply

    2. CHAPTER 2 The Court

       1. 188. Shorthand writers — nomination, appointment, remuneration and costs

       2. 189. Court file

       3. 190. Office copies of documents

       4. 191. Payments into court

    3. CHAPTER 3 Obtaining information and evidence

       1. 192. Further information and disclosure

       2. 193. Witness statements — general

       3. 194. Filing and service of witness statements

       4. 195. Evidence provided by the administrator

    4. CHAPTER 4 Service of court documents

       1. 196. Application of Chapter

       2. 197. Service of court documents within the jurisdiction

       3. 198. Service of court documents outside jurisdiction

       4. 199. Service of orders staying proceedings

       5. 200. Service on joint office-holders

    5. CHAPTER 5 Applications to court – general

       1. 201. Application of Chapter

       2. 202. Form and contents of application

       3. 203. Filing and service of application

       4. 204. Directions

       5. 205. Hearings without notice

       6. 206. Hearing of application

       7. 207. Adjournment of the hearing of an application

    6. CHAPTER 6 Applications to the court under section 176A of the IA 1986

       1. 208. Application of Chapter

       2. 209. Applications under section 176A(5) to disapply section 176A

       3. 210. Notice of application under section 176A(5)

       4. 211. Notice of an order under section 176A(5)

    7. CHAPTER 7 Applications for an order under section 236 of the IA 1986

       1. 212. Application of section 236 of the IA 1986

       2. 213. Form and contents of application

       3. 214. Order for examination etc.

       4. 215. Procedure for examination

       5. 216. Record of examination

       6. 217. Costs of proceedings under section 236 of the IA 1986

    8. CHAPTER 8 People who lack capacity to manage their affairs etc.

       1. 218. Application of Chapter 8

       2. 219. Appointment of another person to act

       3. 220. Witness statement in support of application

       4. 221. Service of notices following appointment

    9. CHAPTER 9 Formal defects

       1. 222. Formal defects

    10. CHAPTER 10 Costs

        1. 223. Application of Chapter 10

        2. 224. Requirement to assess costs by the detailed procedure

        3. 225. Procedure where detailed assessment is required

        4. 226. Costs of officers charged with execution of writs or other process

        5. 227. Costs paid otherwise than out of the institution’s estate

        6. 228. Award of costs against the administrator

        7. 229. Applications for costs

        8. 230. Costs and expenses of witnesses

        9. 231. Final costs certificate

    11. CHAPTER 11 Enforcement procedures

        1. 232. Enforcement of court orders

        2. 233. Orders enforcing compliance with these Rules

        3. 234. Warrants (general provisions)

        4. 235. Warrants under section 236

    12. CHAPTER 12 Appeals

        1. 236. Application of Chapter 12

        2. 237. Appeals and reviews of court orders

        3. 238. Procedure on appeal

        4. 239. Appeal against decision of the Secretary of State

12. PART 11 Prohibited names

    1. 240. Preliminary

    2. 241. Application for permission under section 216(3)

    3. 242. First excepted case

    4. 243. Second excepted case

    5. 244. Third excepted case

13. PART 12 Provisions of general effect

    1. CHAPTER 1 Miscellaneous and general

       1. 245. Costs, expenses etc

       2. 246. Provable debts

       3. 247. False representation of status for purpose of inspecting documents

       4. 248. Punishment of offences

    2. CHAPTER 2 The giving of notice and the supply of documents

       1. 249. Application

       2. 250. Personal delivery

       3. 251. Postal delivery of documents

       4. 252. Notice etc to authorised recipients

    3. CHAPTER 3 The giving of notice and the supply of documents to or by the administrator

       1. 253. Application

       2. 254. The form

       3. 255. Proof of sending

       4. 256. Authentication

       5. 257. Electronic delivery — general

       6. 258. Electronic delivery by administrator

       7. 259. Use of websites by administrator

       8. 260. General use of websites to deliver notices and other documents

       9. 261. Electronic delivery of special administration documents to court

       10. 262. Notice etc to joint administrators

       11. 263. Execution overtaken by judgment debtor’s insolvency

       12. 264. Notice to enforcement officers

       13. 265. Electronic submission of information

       14. 266. Contents of notices to be gazetted

       15. 267. Gazette notices relating to an institution that is a company

       16. 268. Omission of unobtainable information

       17. 269. The Gazette — general

       18. 270. Content of notices advertised other than in the Gazette

       19. 271. Non-Gazette notice relating to an institution that is a company

       20. 272. Non-Gazette notices — other provisions

    4. CHAPTER 4 Notifications to the registrar of companies

       1. 273. Application of Chapter 4

       2. 274. Information to be contained in all notifications to the registrar of companies

       3. 275. Notification relating to the administrator

       4. 276. Notifications relating to documents

       5. 277. Notifications relating to court orders

       6. 278. Notifications relating to other events

       7. 279. Notifications of more than one nature

       8. 280. Notifications made to other persons at the same time

    5. CHAPTER 5 Further provisions concerning documents

       1. 281. Confidentiality of documents — grounds for refusing inspection

       2. 282. Right to copy documents

       3. 283. Charges for copy documents

       4. 284. Right to have list of creditors

    6. CHAPTER 6 Time limits and security

       1. 285. Time limits

       2. 286. Administrator’s security

    7. CHAPTER 7 Transfer of proceedings

       1. 287. Proceedings commenced in the wrong court

       2. 288. Proceedings other than special administration commenced

14. PART 13 General interpretation and application

    1. 289. Introduction

    2. 290. “The court” and “the registrar”

    3. 291. Venue

    4. 292. Insolvent estate

    5. 293. The appropriate fee

    6. 294. “Debt” and “liability”

    7. 295. Application of the IA 1986 and the Company Directors Disqualification Act

15. Signature

16. 1. SCHEDULE

       Punishment of offences

17. Explanatory Note