SCHEDULES

F1SCHEDULE 17A Further provision in relation to exercise of Part 18 functions F8, or other FMI functions, by Bank of England

Annotations:
Amendments (Textual)
F1

Sch. 17A inserted (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), ss. 29(2), 122(3), Sch. 7 (with Sch. 20); S.I. 2013/113, art. 2(1)(b)(c), Sch. Pts. 2, 3; S.I. 2013/423, art. 3, Sch.

F8

Words in Sch. 17A heading inserted (1.1.2024 at 1.00 a.m. for specified purposes) by Financial Services and Markets Act 2023 (c. 29), ss. 50(5), 86(3); S.I. 2023/1382, reg. 10(f)

Part 3Winding up, administration or insolvency of F2recognised clearing houses

Annotations:
Amendments (Textual)

Notice to Bank of England of preliminary steps

34

1

An application for an administration order in respect of a F3recognised clearing houseF4or a recognised CSD may not be determined unless the conditions below are satisfied.

2

A petition for a winding up order in respect of a F3recognised clearing houseF4or a recognised CSD may not be determined unless the conditions below are satisfied.

3

A resolution for voluntary winding up of a F3recognised clearing houseF4or a recognised CSD may not be made unless the conditions below are satisfied.

4

An administrator of a F3recognised clearing houseF4or a recognised CSD may not be appointed unless the conditions below are satisfied.

5

Condition 1 is that the Bank of England has been notified—

a

by the applicant for an administration order, that the application has been made,

b

by the petitioner for a winding up order, that the petition has been presented,

c

by the F3recognised clearing houseF5or the recognised CSD, that a resolution for voluntary winding up may be made, or

d

by the person proposing to appoint an administrator, of the proposed appointment.

6

Condition 2 is that a copy of the notice complying with Condition 1 has been filed (in Scotland, lodged) with the court (and made available for public inspection by the court).

7

Condition 3 is that—

a

the period of 2 weeks, beginning with the day on which the notice is received, has ended, or

b

the Bank of England has informed the person who gave the notice that—

i

it has no objection to the order, resolution or appointment being made, and

ii

it does not intend to exercise a stabilisation power under F7Schedule 11 to the Financial Services and Markets Act 2023.

8

Arranging for the giving of notice in order to satisfy Condition 1 can be a step with a view to minimising the potential loss to a F3recognised clearing house'sF6or a recognised CSD’s creditors for the purpose of section 214 of the Insolvency Act 1986 (wrongful trading).

9

In this paragraph “the court” means—

a

in England and Wales, the High Court,

b

in Scotland, the Court of Session, and

c

in Northern Ireland, the High Court.