The Cross-Border Insolvency Regulations 2006

Article 1. Scope of Application E+W+S

1.  This Law applies where— E+W+S

(a) assistance is sought in Great Britain by a foreign court or a foreign representative in connection with a foreign proceeding; or

(b) assistance is sought in a foreign State in connection with a proceeding under British insolvency law; or

(c) a foreign proceeding and a proceeding under British insolvency law in respect of the same debtor are taking place concurrently; or

(d) creditors or other interested persons in a foreign State have an interest in requesting the commencement of, or participating in, a proceeding under British insolvency law.

2.  This Law does not apply to a proceeding concerning— E+W+S

(a) a company holding an appointment under Chapter 1 of Part 2 of the Water Industry Act 1991 M1 (water and sewage undertakers) or a qualifying [F1 water supply licensee] within the meaning of section 23(6) of that Act (meaning and effect of special administration order);

(b) Scottish Water established under section 20 of the Water Industry (Scotland) Act 2002 (Scottish Water) M2 ;

(c) a protected railway company within the meaning of section 59 of the Railways Act 1993 M3 (railway administration order) (including that section as it has effect by virtue of section 19 of the Channel Tunnel Rail Link Act 1996 M4 (administration));

(d) a licence company within the meaning of section 26 of the Transport Act 2000 M5 (air traffic services);

(e) a public private partnership company within the meaning of section 210 of the Greater London Authority Act 1999 M6 (public-private partnership agreement);

(f) a protected energy company within the meaning of section 154(5) of the Energy Act 2004 M7 (energy administration orders);

(g) a building society within the meaning of section 119 of the Building Societies Act 1986 M8 (interpretation);

(h) a UK credit institution or an EEA credit institution or any branch of either such institution as those expressions are defined by regulation 2 of the Credit Institutions (Reorganisation and Winding Up) Regulations 2004 M9 (interpretation);

(i) a third country credit institution within the meaning of regulation 36 of the Credit Institutions (Reorganisation and Winding Up) Regulations 2004 (interpretation of this Part);

(j) a person who has permission under or by virtue of Parts 4 or 19 of the Financial Services and Markets Act 2000 M10 to effect or carry out contracts of insurance;

(k) an EEA insurer within the meaning of regulation 2 of the Insurers (Reorganisation and Winding Up) Regulations 2004 M11 (interpretation);

(l) a person (other than one included in paragraph 2(j)) pursuing the activity of reinsurance who has received authorisation for that activity from a competent authority within an EEA State; or

(m) any of the Concessionaires within the meaning of section 1 of the Channel Tunnel Act 1987 M12 .

Textual Amendments

F1 Words in Sch. 1 art. 1(2)(a) substituted (31.3.2017) by The Water Act 2014 (Consequential Amendments etc.) Order 2017 (S.I. 2017/506), arts. 1(1), 24

Marginal Citations

M1 1991 c. 56, section 23(6) was amended by the Water Act 2003 (c. 37), Schedule 8, paragraphs 2 and 8(1) and (6).

M2 2002 asp 3.

M3 1993 c. 43; relevant amendments to section 59 are made by the Railways Act 2005 (c. 14), Schedule 13, Part 1 and S.I. 2005/3050.

M4 1996 c. 61.

M5 2000 c. 38.

M6 1999 c. 29.

M7 2004 c. 20; there are amendments to section 119 which are not relevant to these Regulations.

M8 1986 c. 53.

M9 S.I. 2004/1045.

M10 2000 c. 8.

M11 S.I. 2004/353, to which there are amendments not relevant to these Regulations.

M12 1987 c. 53.

3.  In paragraph 2 of this article— E+W+S

(a) in sub-paragraph (j) the reference to “contracts of insurance” must be construed in accordance with—

(i) section 22 of the Financial Services and Markets Act 2000 (classes of regulated activity and categories of investment);

(ii) any relevant order under that section; and

(iii) Schedule 2 to that Act (regulated activities);

(b) in sub-paragraph (1) “EEA State” means a State F2 ... which is a contracting party to the agreement on the European Economic Area signed at Oporto on 2 May 1992.

Textual Amendments

F2 Words in Sch. 1 art. 1(3)(b) omitted (31.12.2020) by virtue of The Insolvency (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/146), reg. 1(3), Sch. para. 114 (with regs. 4, 5); 2020 c. 1, Sch. 5 para. 1(1)

4.  The court shall not grant any relief, or modify any relief already granted, or provide any co-operation or coordination, under or by virtue of any of the provisions of this Law if and to the extent that such relief or modified relief or cooperation or coordination would— E+W+S

(a) be prohibited under or by virtue of—

(i) Part 7 of the Companies Act 1989 M13 ;

(ii) Part 3 of the Financial Markets and Insolvency (Settlement Finality) Regulations 1999 M14 ; or

(iii) Part 3 of the Financial Collateral Arrangements (No. 2) Regulations 2003 M15 ;

in the case of a proceeding under British insolvency law; or

(b) interfere with or be inconsistent with any rights of a collateral taker under Part 4 of the Financial Collateral Arrangements (No. 2) Regulations 2003 which could be exercised in the case of such a proceeding.

Marginal Citations

M13 1989 c. 40, amended by the Bank of England Act 1998 (c. 11), Schedule 5, paragraph 48, the Enterprise Act 2002 (c. 40), Schedule 17, paragraphs 44 to 47, S.I. 1991/880, 1992/1315, 1998/1748, 2001/3649 and 2001/3929.

M14 S.I. 1999/2979, relevant amendments are made by S.I. 2000/2952, 2001/3929, 2002/765 and 2003/2096.

M15 S.I. 2003/3226.

5.  Where a foreign proceeding regarding a debtor who is an insured in accordance with the provisions of the [F3 Third Parties (Rights against Insurers) Act 2010] is recognised under this Law, any stay and suspension referred to in article 20(1) and any relief granted by the court under article 19 or 21 shall not apply to or affect— E+W+S

(a) any transfer of rights of the debtor under that Act; or

(b) any claim, action, cause or proceeding by a third party against an insurer under or in respect of rights of the debtor transferred under that Act.

Textual Amendments

F3 Words in Sch. 1 para. 5 substituted (1.8.2016) by Third Parties (Rights against Insurers) Act 2010 (c. 10), s. 21(2), Sch. 2 para. 4 (with s. 15); S.I. 2016/550, art. 2

6.  Any suspension under this Law of the right to transfer, encumber or otherwise dispose of any of the debtor's assets— E+W+S

(a) is subject to section 26 of the Land Registration Act 2002 M16 where owner's powers are exercised in relation to a registered estate or registered charge;

(b) is subject to section 52 of the Land Registration Act 2002, where the powers referred to in that section are exercised by the proprietor of a registered charge; and

(c) in any other case, shall not bind a purchaser of a legal estate in good faith for money or money's worth unless the purchaser has express notice of the suspension.

Marginal Citations

M16 2002 c. 9.

7.  In paragraph 6— E+W+S

(a) “owner's powers” means the powers described in section 23 of the Land Registration Act 2002 and “registered charge” and “registered estate” have the same meaning as in section 132(1) of that Act; and

(b) “legal estate” and “purchaser” have the same meaning as in section 17 of the Land Charges Act 1972 M17 .

Marginal Citations

M17 1972 c. 61; there are amendments to section 17 which are not relevant to these Regulations.