Part XXIV Insolvency

Bankruptcy

374F1Powers of FCA or PRA to participate in proceedings.

(1)

This section applies if a person F2... presents 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.

(2)

The F3appropriate regulator is entitled to be heard—

(a)

at the hearing of the petition; and

(b)

at any other hearing in relation to the individual or entity under—

(i)

Part IX of the 1986 Act;

(ii)

Part IX of the 1989 Order; or

(iii)

the 1985 Act.

(3)

A copy of the report prepared under section 274 of the 1986 Act (or Article 248 of the 1989 Order) must also be sent to the F3appropriate regulator.

(4)

A person appointed for the purpose by the F3appropriate regulator is entitled—

(a)

to attend any meeting of creditors of the individual or entity;

(b)

to attend any meeting of a committee established under section 301 of the 1986 Act (or Article 274 of the 1989 Order);

(c)

to attend any meeting of commissioners held under paragraph 17 or 18 of Schedule 6 to the 1985 Act; and

(d)

to make representations as to any matter for decision at such a meeting.

(5)

“Individual” means an individual who—

(a)

is, or has been, an authorised person; or

(b)

is carrying on, or has carried on, a regulated activity in contravention of the general prohibition.

(6)

“Entity” means an entity which—

(a)

is, or has been, an authorised person; or

(b)

is carrying on, or has carried on, a regulated activity in contravention of the general prohibition.

F4(7)

"The appropriate regulator” means—

(a)

for the purposes of subsections (2) and (3)—

(i)

where the individual or entity is a PRA-regulated person, each of the FCA and the PRA, and

(ii)

in any other case, the FCA;

(b)

for the purposes of subsection (4)—

(i)

where the individual or entity is a PRA-regulated person, the FCA or the PRA, and

(ii)

in any other case, the FCA.

(8)

But where the petition was presented by a regulator “the appropriate regulator” does not include the regulator which presented the petition.