C4C5C6C7Part XV The Financial Services Compensation Scheme

Annotations:
Modifications etc. (not altering text)
C5

Pt. 15 modified (29.9.2008 at 8.00 a.m.) by The Bradford & Bingley plc Transfer of Securities and Property etc. Order 2008 (S.I. 2008/2546), art. 29 (with art. 30(6))

C6

Pt. 15 modified (7.10.2008 at 9.30 a.m.) by The Heritable Bank plc Transfer of Certain Rights and Liabilities Order 2008 (S.I. 2008/2644), art. 14 (with art. 15(8)

Provisions of the scheme

I1C1C2215F1Rights of the scheme in insolvency

F21

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.

C33

If a person other than the scheme manager F4makes an administration application under Schedule B1 to the 1986 Act or F5Schedule B1 to the 1989 Order in relation to a company or partnership which is a relevant person, the scheme manager has the same rights as are conferred on the Authority by section 362.

F63A

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 F7or 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 F8any of those paragraphs.

C34

If a person other than the scheme manager presents a petition for the winding up of a body which is a relevant person, the scheme manager has the same rights as are conferred on the Authority 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 Authority by section 374.

C36

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 5 of the 1985 Act for the sequestration of the estate of an individual; or

c

under section 6 of the 1985 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

“The 1985 Act”, “the 1986 Act”, “the 1989 Order” and “court” have the same meaning as in Part XXIV.