Powers of the courtU.K.
7.—(1) On an application for a special administration order the court may—
(a)grant the application in accordance with paragraph (2);
(b)dismiss the application;
(c)adjourn the hearing (generally or to a specified date);
(d)make an interim order;
(e)on the application of the [F1FCA], treat the application as an administration application by the [F1FCA] under Schedule B1 in accordance with section 359(1) of FSMA M1; or
[F2(ea)on the application of the PRA, treat the application as an administration application by the PRA under Schedule B1 in accordance with section 359(1A) of FSMA;]
(f)make any other order which the court thinks appropriate.
(2) The court may make a special administration order if it is satisfied that the company is an investment bank and—
(a)(on the application of persons listed in regulation 5(1)(a) to (e) [F3, the FCA or PRA]) that Ground A or Ground B in regulation 6 is satisfied;
(b)(on the application of the Secretary of State) if satisfied that Grounds B and C in regulation 6 are satisfied.
(3) Where the application for a special administration order is made by members of the investment bank as contributories on the basis that Ground B in regulation 6 is satisfied, the court, if it is of the opinion that—
(a)the applicants are entitled to relief either by a special administration order being made in respect of the investment bank or by some other means; and
(b)in the absence of any other remedy it would be fair that the special administration order be made in respect of the investment bank,
shall make a special administration order; but this does not apply if the court is also of the opinion that an alternative remedy is available to the applicants and that they are acting unreasonably in applying for a special administration order instead of pursuing that other remedy.
(4) A special administration order takes effect in accordance with its terms.
Textual Amendments
F1Word in reg. 7(1)(e) substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), art. 1(1), Sch. 2 para. 198(e)(i)(aa) (with Sch. 2 para. 213)
F2Reg. 7(1)(ea) inserted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), art. 1(1), Sch. 2 para. 198(e)(i)(bb) (with Sch. 2 para. 213)
F3Words in reg. 7(2)(a) substituted (1.4.2013) by The Financial Services Act 2012 (Consequential Amendments and Transitional Provisions) Order 2013 (S.I. 2013/472), art. 1(1), Sch. 2 para. 198(e)(ii) (with Sch. 2 para. 213)
Marginal Citations
M1Section 359 was substituted by the Enterprise Act 2002 (c. 40), section 248(3), Schedule 17, paragraphs 53, 55, and by the Insolvency (Northern Ireland) Order 2005 (S.I. 2005/1455), article 3(3), Schedule 2, paragraphs 56, 58(1), (2), (3), (4). There are other amendments to this section that are not relevant here.