The Investment Bank Special Administration Regulations 2011

Regulation 27

SCHEDULE 6 U.K. Modifications and consequential amendments

PART 1 U.K.

1.—(1) Where this Part of this Schedule applies, the enactments set out below apply with the following modifications. U.K.

(2) References to—

(a) an administrator appointed in respect of a Schedule B1 administration include a reference to an administrator appointed under a special administration order;

(b) administration under Schedule B1 or “insolvent administration” include a reference to special administration;

(c) “administration order” include a reference to a special administration order;

(d) “insolvency legislation”, the “general law of insolvency”, the “enactments relating to insolvency” and similar expressions include special administration and the provisions of the Insolvency Act as applied by these Regulations;

(e) becoming insolvent, or an “insolvency event” occurring in respect of the investment bank includes being put into special administration and “insolvency proceedings” or an “insolvency procedure” include special administration;

(f) “winding up”, being “wound up”, “wound up by the court” “going into liquidation” or “compulsory liquidation” include being put into special administration, and a “winding-up order” include a special administration order (and, in this context, “liquidator” shall be read as “administrator”);

(g) a person acting as an insolvency practitioner within the meaning of section 388 of the Insolvency Act include a person acting as an administrator under these Regulations;

(h) the provisions of the Insolvency Act include those provisions as applied and modified by these Regulations; and

(i) the provisions of the Insolvency Rules 1986 M1 , the Insolvency Rules (Northern Ireland) 1991 M2 and the Insolvency (Scotland) Rules 1986 M3 include the provisions of insolvency rules made under section 411 of the Insolvency Act as applied by regulation 15(6).

(3) A reference to insolvency or liquidation within the meaning of section 247 of the Insolvency Act includes a reference to special administration.

(4) A reference to the “purposes of the Insolvency Act 1986” includes a reference to the purposes of these Regulations.

Marginal Citations

M1 S.I. 1986/1925.

M2 S.R. 1991 No. 364.

M3 S.I. 1986/1915.

Primary Legislation U.K.

• Taxes Management Act 1970 M4

• Prescription and Limitation (Scotland) Act 1973 M5

• Companies Act 1985 M6

• Finance Act 1986 M7

• Companies (Northern Ireland) Order 1986 M8

• Debtors (Scotland) Act 1987 M9

• Companies Act 1989

• Companies (No. 2) (Northern Ireland) Order 1990 M10

• Taxation of Chargeable Gains Act 1992 M11

• Pension Schemes Act 1993 M12

• Pension Schemes (Northern Ireland) Act 1993 M13

• Pensions Act 1995 M14

• Pensions (Northern Ireland) Order 1995 M15

• Proceeds of Crime (Scotland) Act 1995 M16

• Employment Rights Act 1996 M17

• Employment Rights (Northern Ireland) Order 1996 M18

• Terrorism Act 2000 M19

• Finance Act 2000 M20

• International Criminal Court Act 2001 M21

• International Criminal Court (Scotland) Act 2001 M22

• Proceeds of Crime Act 2002 M23

• Debt Arrangement and Attachment (Scotland) Act 2002 M24

• Finance Act 2003 M25

• Pensions Act 2004 M26

• Pensions (Northern Ireland) Order 2005 M27

• Companies Act 2006 (but not including section 1078 (documents subject to Directive disclosure requirements)

• Bankruptcy and Diligence (Scotland) Act 2007 M28

• Finance Act 2008 M29

• Dormant Bank and Building Society Accounts Act 2008 M30

• Corporation Tax Act 2009 M31

• Corporation Tax Act 2010 M32

• Taxation (International and other Provisions) Act 2010 M33

Marginal Citations

M4 1970 c. 9.

M5 1973 c. 52.

M6 1985 c. 6.

M7 1986 c.41.

M8 S.I. 1986 No. 1032 (N.I. 6).

M9 1987 c.18.

M10 S.I. 1990/1504 (N.I. 10).

M11 1992 c.12.

M12 1993 c. 48.

M13 1993 c. 49.

M14 1995 c.26.

M15 S.I. 1995/3213 (N.I. 22).

M16 1995 c.43.

M17 1996 c.18.

M18 S.I. 1996/1919 (N.I. 16).

M19 2000 c.11.

M20 2000 c.17.

M21 2001 c.17.

M22 2001 asp 13.

M23 2002 c. 29.

M24 2002 asp 17.

M25 2003 c.14.

M26 2004 c. 35.

M27 S.I. 2005/255 (N.I. 1).

M28 2007 asp 3.

M29 2008 c. 9.

M30 2008 c. 31.

M31 2009 c. 4.

M32 2010 c. 4.

M33 2010 c. 8.

Secondary Legislation U.K.

• Statutory Maternity Pay (General) Regulations 1986 M34

• Statutory Maternity Pay (General) (Northern Ireland) Regulations 1987 M35

• Insolvent Companies (Disqualification of Unfit Directors) Proceedings Rules 1987 M36

• Financial Markets and Insolvency Regulations 1991 M37

• Financial Markets and Insolvency Regulations (Northern Ireland) 1991 M38

• Insolvency Regulations 1994 M39

• Non-Domestic Rating (Unoccupied Property) (Scotland) Regulations 1994 M40

• Insolvent Companies (Reports on Conduct of Directors) Rules 1996 M41

• Financial Markets and Insolvency Regulations 1996 M42

• Financial Markets and Insolvency Regulations (Northern Ireland) 1996 M43

• Individual Savings Account Regulations 1998 M44

• Corporation Tax (Simplified Arrangements for Group Relief) Regulations 1999 M45

• Financial Markets and Insolvency (Settlement Finality) Regulations 1999

• Statutory Paternity Pay and Statutory Adoption Pay (General) Regulations 2002 M46

• Statutory Paternity Pay and Statutory Adoption Pay (General) (Northern Ireland) Regulations 2002 M47

• Financial Collateral Arrangements (No. 2) Regulations 2003

• Insolvent Companies (Reports on Conduct of Directors) Rules (Northern Ireland) 2003 M48

• Insolvent Companies (Disqualification of Unfit Directors) Proceedings Rules (Northern Ireland) 2003 M49

• Credit Institutions (Reorganisation and Winding Up) Regulations 2004 M50

• Insolvency Practitioners Regulations 2005 M51

• Pension Protection Fund (Entry Rules) Regulations 2005 M52

• Pension Protection Fund (Entry Rules) Regulations (Northern Ireland) 2005 M53

• Gender Recognition (Disclosure of Information) (England, Wales and Northern Ireland) (No. 2) Order 2005 M54

• Gender Recognition (Disclosure of Information) (Scotland) Order 2005 M55

• Financial Assistance Scheme Regulations 2005 M56

• Insolvency Practitioners Regulations (Northern Ireland) 2006 M57

• Land Registration (Scotland) Rules 2006 M58

• F1 ...

• Regulated Covered Bonds Regulations 2008 M59

• [F2 Company, Limited Liability Partnership and Business (Names and Trading Disclosures) Regulations 2015]

• Land Registration (Network Access) Rules 2008 M60

• Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 M61

• Registrar of Companies (Fees) (Companies, Overseas Companies and Limited Liability Partnerships) Regulations 2009 M62

• Payment Services Regulations [F3 2017]

• Companies (Disclosure of Address) Regulations 2009 M63

• Additional Statutory Paternity Pay (General) Regulations 2010 M64

• [F4 Statutory Parental Bereavement Pay (General) Regulations 2020]

• [F5 Statutory Parental Bereavement Pay (General) Regulations (Northern Ireland) 2023]

Textual Amendments

F1 Words in Sch. 6 Pt. 1 omitted (31.12.2020) by virtue of The Companies, Limited Liability Partnerships and Partnerships (Amendment etc.) (EU Exit) Regulations 2019 (S.I. 2019/348), reg. 2, Sch. 3 para. 32; 2020 c. 1, Sch. 5 para. 1(1)

F2 Words in Sch. 6 Pt. 1 substituted (31.1.2015) by The Company, Limited Liability Partnership and Business (Names and Trading Disclosures) Regulations 2015 (S.I. 2015/17), reg. 1(1), Sch. 6 para. 6

F3 Word in Sch. 6 Pt. 1 substituted (13.1.2018) by The Payment Services Regulations 2017 (S.I. 2017/752), reg. 1(6), Sch. 8 para. 11 (with reg. 3)

F4 Words in Sch. 6 Pt. 1 inserted (6.4.2020) by The Parental Bereavement Leave and Pay (Consequential Amendments to Subordinate Legislation) Regulations 2020 (S.I. 2020/354), regs. 1, 23(2)

F5 Words in Sch. 6 Pt. 1 inserted (2.4.2023) by The Parental Bereavement Leave and Pay (Consequential Amendments to Subordinate Legislation) Regulations (Northern Ireland) 2023 (S.R. 2023/56), regs. 1(1), 17(2), 34 (with regs. 28-33)

Marginal Citations

M34 S.I. 1986/1960.

M35 S.R. 1987 No. 30.

M36 S.I. 1987/2023.

M37 S.I. 1991/880.

M38 S.R. 1991 No. 443.

M39 S.I. 1994/2507.

M40 S.I. 1994/3200.

M41 S.I. 1996/1909.

M42 S.I. 1996/1469.

M43 S.R. 1996 No. 252.

M44 S.I. 1998/1870.

M45 S.I. 1999/2975.

M46 S.I. 2002/2822.

M47 S.R. 2002 No. 378.

M48 S.R. 2003 No. 357.

M49 S.R. 2003 No. 358.

M50 S.I. 2004/1045.

M51 S.I. 2005/524.

M52 S.I. 2005/590.

M53 S.R. 2005 No. 126.

M54 S.I. 2005/916.

M55 S.S.I. 2005/125.

M56 S.I. 2005/1986.

M57 S.R. 2006 No. 33.

M58 S.S.I. 2006/485.

M59 S.I. 2008/346.

M60 S.I. 2008/1748.

M61 S.I. 2008/1911.

M62 S.I. 2009/2101.

M63 S.I. 2009/214.

M64 S.I. 2010/1056.

PART 2 U.K. Specific modifications

2.  Where this Part of this Schedule applies, the enactments set out below apply with the modifications indicated. U.K.

Financial Services and Markets Act 2000 U.K.

3.—(1) The following provisions of the Financial Services and Markets Act 2000 apply with the modifications set out in this paragraph.

(2) In section 215M65 (rights of the scheme in insolvency)—

(a) in subsection (3), the reference to making an administration application is to be read as including making an application for a special administration order; and

(b) subsection (4) is to be read as if it provided the following—

“(4) In the case of a special administration (bank insolvency), if the scheme manager decides, pursuant to section 101 of the Banking Act 2009, as applied by paragraph 6(2) of Schedule 1 to the Investment Bank Special Administration Regulations 2011, not to be a member of the creditors' committee, the scheme manager has the same rights as are conferred on the [F6 regulators] by section 371.”.

(3) In section 220(3)M66 , the reference to an administrator is to be read as including an administrator appointed under a special administration order.

(4) In section 362(6)M67 , the reference to administration is to be read as including special administration.

(5) In section 375 ([F7 right of FCA and PRA] to apply for an order), references to the provisions of the Insolvency Act 1986 and the Insolvency (Northern Ireland) Order 1989 are to be read as including references to those provisions as applied and modified by—

(a) regulation 15; or

(b) section 145 of the Banking Act 2009 (with the modifications set out in paragraph 6(3) of Schedule 2).

Textual Amendments

F6 Word in Sch. 6 para. 3(2)(b) 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(s)(i) (with Sch. 2 para. 213)

F7 Words in Sch. 6 para. 3(5) 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(s)(ii) (with Sch. 2 para. 213)

Marginal Citations

M65 Section 215(3) was amended by the Enterprise Act 2002 (c. 40), section 248(3), Schedule 17, paragraphs 53, 54(1), (2) and by S.I. 2005/1455.

M66 Section 220(3) was amended but the amendments are not relevant.

M67 Section 362(6) was amended by S.I. 2008/948.

Pensions Act 2004 U.K.

4.  In section 121(3)(d) of the Pensions Act 2004 (meaning of insolvency event), the reference to “the company enters administration within the meaning of paragraph 1(2)(b) of Schedule B1 to that Act” is to be read so as to include the investment bank entering special administration.

Companies Act 2006 U.K.

5.—(1) The following provisions of the Companies Act 2006 apply with the modifications set out in this paragraph.

(2) In section 461 (permitted disclosure of information obtained under compulsory powers)—

(a) subsection (4)(c) is to be read so as to include these Regulations in the list of enactments in that subsection; and

(b) subsection (4)(g) is to be read so as to include these Regulations in the list of enactments in that subsection.

(3) Any references in Part 35 (the registrar of companies) to the Insolvency Act 1986 and the Insolvency (Northern Ireland) Order 1989 are to be read as including that legislation as applied and modified by these Regulations.

(4) Where an application is made to the court for—

(a) a special administration order; or

(b) the appointment of a person under section 135 of the Insolvency Act 1986 or article 115 of the Insolvency (Northern Ireland) Order 1989 as applied by these Regulations,

sections 1139 and 1140 (service of documents on company, directors, secretaries and others) have effect subject to the provisions for service set out in rules made under section 411 of the Insolvency Act as applied and modified by regulation 15 of these Regulations.

(5) In Part 2 of Schedule 2 M68 (Specified descriptions of disclosures for the purposes of section 948), under heading A—

(a) paragraph 13 is to be read so as to include these Regulations in the list of enactments in that paragraph, and

(b) paragraph 37 is to be read so as to include these Regulations in the list of enactments in that paragraph.

(6) In Part 2 of Schedule 11A M69 (Specified descriptions of disclosures for the purposes of section 1224A)—

(a) paragraph 30 is to be read so as to include these Regulations in the list of enactments in that paragraph, and

(b) paragraph 52 is to be read so as to include these Regulations in the list of enactments in that paragraph.

Marginal Citations

M68 Schedule 2 was inserted by S.I. 2009/1208.

M69 Schedule 11A was inserted by S.I. 2007/3494.

Land Registration Rules 2003 U.K.

6.  Rule 184(1) of the Land Registration Rules 2003 M70 is to be read as if the reference to administration included special administration.

Marginal Citations

M70 S.I. 2003/1417; this instrument was amended by S.I. 2003/2096.

Credit Institutions (Reorganisation and Winding Up) Regulations 2004 U.K.

7.—(1) The following provision of the Credit Institutions (Reorganisation and Winding Up) Regulations 2004 M71 applies with the modification set out in this paragraph.

(2) Regulation 11(2) is to be read as if it provided the following—

“(2) The prescribed circumstances are that, after the appointment of the administrator, the administrator, in drawing up the statement of proposals in accordance with paragraph 49 of Schedule B1 (as applied by regulation 15(6) of the Investment Bank Special Administration Regulations 2011) or paragraph 7 of Schedule 2 to those Regulations has concluded that it is not possible to rescue the investment bank as a going concern.”.

Marginal Citations

M71 S.I. 2004/1045.

PART 3 U.K. Consequential amendments

Companies Act 1985 U.K.

8.  After paragraph 9(f) in Schedule 15D M72 to the Companies Act 1985 (disclosures), insert—

“(g) the Investment Bank Special Administration Regulations 2011.”.

Marginal Citations

M72 Schedule 15D was inserted by the Companies (Audit, Investigations and Community Enterprise) Act 2004 (c. 27), section 25(1), Schedule 2, paragraphs 16, 25.

Finance Act 1986 U.K.

9.—(1) The following provisions of the Finance Act 1986 are amended as follows.

(2) In section 80D(9)(h) M73 (stamp duty on repurchases and stock lending: replacement on insolvency) omit “or” and after that paragraph insert—

“(ha) if a special administration order takes effect under the Investment Bank Special Administration Regulations 2011, or”.

(3) In section 89AB(9)(h) M74 (stamp duty reserve tax: exception for repurchases and stock lending in case of insolvency) omit “or” and after that paragraph insert—

“(ha) if a special administration order takes effect under the Investment Bank Special Administration Regulations 2011.”.

Marginal Citations

M73 Section 80D was inserted by the Finance Act 2009 (c. 10), section 83(1), Schedule 37, paragraphs 1, 2.

M74 Section 89AB was inserted by the Finance Act 2009, section 83(1), Schedule 37, paragraphs 4, 5.