http://www.legislation.gov.uk/id/uksi/2004/353

http://www.legislation.gov.uk/uksi/2004/353/regulation/4/made

The Insurers (Reorganisation and Winding Up) Regulations 2004

Life insurance

Insolvency

Business practice and regulation

Insurance claims

Business premises

King's Printer of Acts of Parliament

2018-03-21

INSOLVENCY

COMPANIES

These Regulations revoke and replace in their entirety the Insurers (Reorganisation and Winding Up) Regulations 2003 (SI 2003/1102) which implemented the directive of the Parliament and the Council on the reorganisation and winding up of insurance undertakings (2001/17/EC) for all UK insurers except Lloyd's. They take account of the changes to insolvency law brought about by the commencement of the Enterprise Act 2002 and in particular the new administration procedures in the new Schedule B1 to the Insolvency Act 1986. The Financial Services and Markets Act 2000 (Administration Orders Relating to Insurers) Order 2002 (SI 2002/1242) is amended to disapply paragraphs 14 and 22 of Schedule B1 because the reorganisation and winding up directive does not permit the appointment of an administrator other than by a court. These Regulations continue to provide that no winding up proceedings or voluntary arrangements in respect of EEA insurers can be undertaken in the UK except in the circumstances permitted by the Regulations. EEA reorganisation and winding up proceedings are to be recognised in the UK. Provisions are made for the exercise by EEA liquidators of their functions in the UK. Provision is made for the notification of reorganisation and winding up proceedings to competent authorities in other EEA Member States. Modifications are made to UK insolvency law in respect of notifications of various other matters including important stages in the relevant procedures and forms in which creditors in other EEA States may enter claims, to the FSA, EEA authorities and creditors. There are detailed changes from the provisions in the Regulations replaced with regard to administration and in particular to accommodate the ability for companies, Directors and holders of floating charges to appoint an administrator without a court order. The Regulations provide for the special order of priority for insurance debts created by the directive to apply to UK insurers and for the carrying through of the consequences of this in insolvency law. They make provision for application to insurers whose head office is outside the UK and the EEA. Provision is made for detailed amendment of existing secondary legislation including the insolvency rules in all UK jurisdictions dealing with the reorganisation or winding up of insurers.

The Insurers (Reorganisation and Winding Up) Regulations 2004

Regulations

Financial Services and Markets Act 2023

Sch. 1

Pt. 2

s. 1(4)

s. 86(3)

PART IIINSOLVENCY MEASURES AND PROCEEDINGS: JURISDICTION IN RELATION TO INSURERS

Prohibition against winding up etc.EEA insurers in the United Kingdom4

1

On or after the relevant date a court in the United Kingdom may not, in relation to an EEA insurer or any branch of an EEA insurer—

a

make a winding up order pursuant to section 221 of the 1986 Act or Article 185 of the 1989 Order;

b

appoint a provisional liquidator;

c

make an administration order.

2

Paragraph (1)(a) does not prevent—

a

the court from making a winding up order after the relevant date in relation to an EEA insurer if—

i

a provisional liquidator was appointed in relation to that insurer before the relevant date, and

ii

that appointment continues in force until immediately before that winding up order is made;

b

the winding up of an EEA insurer after the relevant date pursuant to a winding up order which was made, and has not been discharged, before that date.

3

Paragraph (1)(b) does not prevent a provisional liquidator of an EEA insurer appointed before the relevant date from acting in relation to that insurer after that date.

4

Paragraph (1)(c) does not prevent an administrator appointed before the relevant date from acting after that date in a case in which the administration order under which he or his predecessor was appointed remains in force after that date.

5

An administrator may not, in relation to an EEA insurer, be appointed under paragraphs 14 or 22 of Schedule B1.

6

A proposed voluntary arrangement shall not have effect in relation to an EEA insurer if a decision, under section 4 of the 1986 Act or Article 17 of the 1989 Order, with respect to the approval of that arrangement was made after the relevant date.

7

Section 377 of the 2000 Act (reducing the value of contracts instead of winding up) does not apply in relation to an EEA insurer.

8

An order under section 253 of the Enterprise Act 2002 (application of insolvency law to a foreign company) may not provide for any of the following provisions of the 1986 Act to apply in relation to an EEA insurer—

a

Part I (company voluntary arrangements);

b

Part II (administration);

c

Chapter VI of Part IV (winding up by the Court).

9

In this regulation and regulation 5, “relevant date” means 20th April 2003.