PART VREORGANISATION OR WINDING UP OF UK INSURERS: RECOGNITION OF EEA RIGHTS

Application of this Part: assets subject to a section 425 or Article 418 compromise or arrangement35.

(1)

For the purposes of this Part, the insolvent estate of a UK insurer shall not include any assets which at the commencement date are subject to a relevant section 425 or Article 418 compromise or arrangement.

(2)

In this regulation—

(a)

“assets” has the same meaning as “property” in section 436 of the 1986 Act or Article 2(2) of the 1989 Order;

(b)

“commencement date” has the meaning given in regulation 18(4);

(c)

“insolvent estate” in England and Wales and Northern Ireland has the meaning given by Rule 13.8 of the Insolvency Rules or Rule 0.2 of the Insolvency Rules (Northern Ireland) and in Scotland means the company’s assets;

(d)

“relevant section 425 or Article 418 compromise or arrangement” means—

(i)

a section 425 or Article 418 compromise or arrangement which was sanctioned by the court before 20th April 2003, or

(ii)

any subsequent section 425 or Article 418 compromise or arrangement sanctioned by the court to amend or replace a compromise or arrangement of the kind mentioned in paragraph (i).