http://www.legislation.gov.uk/uksi/2021/716/regulation/10The Payment and Electronic Money Institution Insolvency Regulations 2021enFINANCIAL SERVICES AND MARKETSStatute Law Database2024-05-20Expert Participation2024-01-04 These Regulations establish a new insolvency procedure to be known as payment institution special administration or electronic money institution special administration (as the case may be) to operate as an alternative to the liquidation or administration of those institutions under the Insolvency Act 1986 (c. 45) (see regulations 7 to 47 and Schedules 1 to 4). Powers of the court101On an application for a special administration order the court may—agrant the application in accordance with paragraph (2);bdismiss the application;cadjourn the hearing (generally or to a specified date);dmake an interim order;eon the application of the FCA, treat the application as an application by the FCA for Schedule B1 administration in accordance with section 359(1) of the FSMA 2000;fmake any other order which the court thinks appropriate.2The court may make a special administration order if it is satisfied ...—aon the application of persons listed in regulation 8(1)(a) to (e) or the FCA, that Ground A or Ground B in regulation 9 is satisfied, orbon the application of the Secretary of State, ... that Grounds B and C in regulation 9 are satisfied.3Where the application for a special administration order is made by members of the institution as contributories on the basis that Ground B in regulation 9 is satisfied, the court must make a special administration order if it is of the opinion that—athe applicants are entitled to relief either by a special administration order being made in respect of the institution or by some other means, andbin the absence of any other remedy it would be fair that the special administration order be made in respect of the institution.4But paragraph (3) 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.5A special administration order takes effect in accordance with its terms. Section 359(1) was amended by the Financial Services Act 2012 (c. 21). Reg. 10 in force at 8.7.2021, see reg. 2Words in reg. 10(2)(b) omitted (4.1.2024) by virtue of The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023 (S.I. 2023/1399), regs. 1(2), 8(b)Words in reg. 10(2) omitted (4.1.2024) by virtue of The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023 (S.I. 2023/1399), regs. 1(2), 8(a)
This XML file does not appear to have any style information associated with it. The document tree is shown below.
<Legislation xmlns="http://www.legislation.gov.uk/namespaces/legislation" xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" DocumentURI="http://www.legislation.gov.uk/uksi/2021/716" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716" NumberOfProvisions="98" xsi:schemaLocation="http://www.legislation.gov.uk/namespaces/legislation http://www.legislation.gov.uk/schema/legislation.xsd" SchemaVersion="1.0" RestrictExtent="E+W+S+N.I." RestrictStartDate="2024-01-04">
<ukm:Metadata xmlns:dc="http://purl.org/dc/elements/1.1/" xmlns:dct="http://purl.org/dc/terms/" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:ukm="http://www.legislation.gov.uk/namespaces/metadata">
<dc:identifier>http://www.legislation.gov.uk/uksi/2021/716/regulation/10</dc:identifier>
<dc:title>The Payment and Electronic Money Institution Insolvency Regulations 2021</dc:title>
<dc:language>en</dc:language>
<dc:subject scheme="SIheading">FINANCIAL SERVICES AND MARKETS</dc:subject>
<dc:publisher>Statute Law Database</dc:publisher>
<dc:modified>2024-05-20</dc:modified>
<dc:contributor>Expert Participation</dc:contributor>
<dct:valid>2024-01-04</dct:valid>
<dc:description>These Regulations establish a new insolvency procedure to be known as payment institution special administration or electronic money institution special administration (as the case may be) to operate as an alternative to the liquidation or administration of those institutions under the Insolvency Act 1986 (c. 45) (see regulations 7 to 47 and Schedules 1 to 4).</dc:description>
<atom:link rel="self" href="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/data.xml" type="application/xml"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/resources" href="http://www.legislation.gov.uk/uksi/2021/716/resources" title="More Resources"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/memorandum" href="http://www.legislation.gov.uk/uksi/2021/716/memorandum" title="Explanatory Memorandum"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/memorandum/toc" href="http://www.legislation.gov.uk/uksi/2021/716/memorandum/contents" title="Explanatory Memorandum Table of Contents"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/act" href="http://www.legislation.gov.uk/uksi/2021/716" title="whole act"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/introduction" href="http://www.legislation.gov.uk/uksi/2021/716/introduction" title="introduction"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/signature" href="http://www.legislation.gov.uk/uksi/2021/716/signature" title="signature"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/note" href="http://www.legislation.gov.uk/uksi/2021/716/note" title="note"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/body" href="http://www.legislation.gov.uk/uksi/2021/716/body" title="body"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/schedules" href="http://www.legislation.gov.uk/uksi/2021/716/schedules" title="schedules"/>
<atom:link rel="alternate" type="application/rdf+xml" href="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/data.rdf" title="RDF/XML"/>
<atom:link rel="alternate" type="application/akn+xml" href="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/data.akn" title="AKN"/>
<atom:link rel="alternate" type="application/xhtml+xml" href="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/data.xht" title="HTML snippet"/>
<atom:link rel="alternate" type="text/html" href="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/data.htm" title="Website (XHTML) Default View"/>
<atom:link rel="alternate" type="text/csv" href="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/data.csv" title="CSV"/>
<atom:link rel="alternate" type="application/pdf" href="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/data.pdf" title="PDF"/>
<atom:link rel="alternate" type="application/akn+xhtml" href="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/data.html" title="HTML5 snippet"/>
<atom:link rel="http://purl.org/dc/terms/tableOfContents" hreflang="en" href="http://www.legislation.gov.uk/uksi/2021/716/contents" title="Table of Contents"/>
<atom:link rel="http://purl.org/dc/terms/replaces" href="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/2021-07-08" title="2021-07-08"/>
<atom:link rel="http://purl.org/dc/terms/hasVersion" href="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/made" title="made"/>
<atom:link rel="http://purl.org/dc/terms/hasVersion" href="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/2021-07-08" title="2021-07-08"/>
<atom:link rel="http://purl.org/dc/terms/hasVersion" href="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/2024-01-04" title="2024-01-04"/>
<atom:link rel="http://www.legislation.gov.uk/def/navigation/supersedes" href="http://www.legislation.gov.uk/id/ukdsi/2021/9780348222814" title="The Payment and Electronic Money Institution Insolvency Regulations 2021"/>
<atom:link rel="up" href="http://www.legislation.gov.uk/uksi/2021/716" title="Entire legislation"/>
<atom:link rel="prev" href="http://www.legislation.gov.uk/uksi/2021/716/regulation/9" title="Provision; Regulation 9"/>
<atom:link rel="prevInForce" href="http://www.legislation.gov.uk/uksi/2021/716/regulation/9" title="Provision; Regulation 9"/>
<atom:link rel="next" href="http://www.legislation.gov.uk/uksi/2021/716/regulation/11" title="Provision; Regulation 11"/>
<atom:link rel="nextInForce" href="http://www.legislation.gov.uk/uksi/2021/716/regulation/11" title="Provision; Regulation 11"/>
<ukm:SecondaryMetadata>
<ukm:DocumentClassification>
<ukm:DocumentCategory Value="secondary"/>
<ukm:DocumentMainType Value="UnitedKingdomStatutoryInstrument"/>
<ukm:DocumentStatus Value="revised"/>
<ukm:DocumentMinorType Value="regulation"/>
</ukm:DocumentClassification>
<ukm:Year Value="2021"/>
<ukm:Number Value="716"/>
<ukm:Made Date="2021-06-17"/>
<ukm:ComingIntoForce>
<ukm:DateTime Date="2021-07-08"/>
</ukm:ComingIntoForce>
<ukm:ISBN Value="9780348224832"/>
</ukm:SecondaryMetadata>
<ukm:Supersedes URI="http://www.legislation.gov.uk/id/ukdsi/2021/9780348222814">
<dc:title>The Payment and Electronic Money Institution Insolvency Regulations 2021</dc:title>
<ukm:DocumentMainType Value="UnitedKingdomDraftStatutoryInstrument"/>
<ukm:Year Value="2021"/>
<ukm:ISBN Value="9780348222814"/>
</ukm:Supersedes>
<ukm:Notes>
<ukm:Note IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/notes"/>
<ukm:Alternatives>
<ukm:Alternative URI="http://www.legislation.gov.uk/uksi/2021/716/pdfs/uksiem_20210716_en.pdf" Date="2021-06-18" Title="UK Explanatory Memorandum" Size="81694"/>
</ukm:Alternatives>
</ukm:Notes>
<ukm:Alternatives>
<ukm:Alternative URI="http://www.legislation.gov.uk/uksi/2021/716/pdfs/uksi_20210716_en.pdf" Date="2021-06-18" Size="305395"/>
</ukm:Alternatives>
<ukm:OtherDocuments>
<ukm:OtherDocument URI="http://www.legislation.gov.uk/uksi/2021/716/pdfs/uksiod_20210716_en.pdf" Date="2021-06-18" Title="De minimis assessment" Size="77390"/>
</ukm:OtherDocuments>
<ukm:Statistics>
<ukm:TotalParagraphs Value="98"/>
<ukm:BodyParagraphs Value="53"/>
<ukm:ScheduleParagraphs Value="45"/>
<ukm:AttachmentParagraphs Value="0"/>
<ukm:TotalImages Value="0"/>
</ukm:Statistics>
</ukm:Metadata>
<Secondary>
<Body DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/body" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/body" NumberOfProvisions="53" RestrictExtent="E+W+S+N.I." RestrictStartDate="2024-01-04">
<P1group RestrictExtent="E+W+S+N.I." RestrictStartDate="2024-01-04">
<Title>Powers of the court</Title>
<P1 DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/regulation/10" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/10" id="regulation-10">
<Pnumber>
<CommentaryRef Ref="key-441705ed78520b9e68e0865c052e2204"/>
10
</Pnumber>
<P1para>
<P2 DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/1" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/10/1" id="regulation-10-1">
<Pnumber>1</Pnumber>
<P2para>
<Text>On an application for a special administration order the court may—</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/1/a" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/10/1/a" id="regulation-10-1-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>grant the application in accordance with paragraph (2);</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/1/b" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/10/1/b" id="regulation-10-1-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>dismiss the application;</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/1/c" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/10/1/c" id="regulation-10-1-c">
<Pnumber>c</Pnumber>
<P3para>
<Text>adjourn the hearing (generally or to a specified date);</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/1/d" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/10/1/d" id="regulation-10-1-d">
<Pnumber>d</Pnumber>
<P3para>
<Text>make an interim order;</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/1/e" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/10/1/e" id="regulation-10-1-e">
<Pnumber>e</Pnumber>
<P3para>
<Text>
on the application of the FCA, treat the application as an application by the FCA for Schedule B1 administration in accordance with section 359(1) of the FSMA 2000
<FootnoteRef Ref="f00018"/>
;
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/1/f" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/10/1/f" id="regulation-10-1-f">
<Pnumber>f</Pnumber>
<P3para>
<Text>make any other order which the court thinks appropriate.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/2" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/10/2" id="regulation-10-2">
<Pnumber>2</Pnumber>
<P2para>
<Text>
The court may make a special administration order if it is satisfied
<CommentaryRef Ref="key-c105686a8a3843ab673a1094d2c7781f"/>
...—
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/2/a" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/10/2/a" id="regulation-10-2-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>
on the application of persons listed in regulation
<InternalLink Ref="regulation-8" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/8" DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/regulation/8">8</InternalLink>
(1)(a) to (e) or the FCA, that Ground A or Ground B in regulation
<InternalLink Ref="regulation-9" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/9" DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/regulation/9">9</InternalLink>
is satisfied, or
</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/2/b" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/10/2/b" id="regulation-10-2-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>
on the application of the Secretary of State,
<CommentaryRef Ref="key-46ba53227e330d58caee99f88994c728"/>
... that Grounds B and C in regulation
<InternalLink Ref="regulation-9" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/9" DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/regulation/9">9</InternalLink>
are satisfied.
</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/3" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/10/3" id="regulation-10-3">
<Pnumber>3</Pnumber>
<P2para>
<Text>
Where the application for a special administration order is made by members of the institution as contributories on the basis that Ground B in regulation
<InternalLink Ref="regulation-9" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/9" DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/regulation/9">9</InternalLink>
is satisfied, the court must make a special administration order if it is of the opinion that—
</Text>
<P3 DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/3/a" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/10/3/a" id="regulation-10-3-a">
<Pnumber>a</Pnumber>
<P3para>
<Text>the applicants are entitled to relief either by a special administration order being made in respect of the institution or by some other means, and</Text>
</P3para>
</P3>
<P3 DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/3/b" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/10/3/b" id="regulation-10-3-b">
<Pnumber>b</Pnumber>
<P3para>
<Text>in the absence of any other remedy it would be fair that the special administration order be made in respect of the institution.</Text>
</P3para>
</P3>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/4" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/10/4" id="regulation-10-4">
<Pnumber>4</Pnumber>
<P2para>
<Text>But paragraph (3) 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.</Text>
</P2para>
</P2>
<P2 DocumentURI="http://www.legislation.gov.uk/uksi/2021/716/regulation/10/5" IdURI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/10/5" id="regulation-10-5">
<Pnumber>5</Pnumber>
<P2para>
<Text>A special administration order takes effect in accordance with its terms.</Text>
</P2para>
</P2>
</P1para>
</P1>
</P1group>
</Body>
</Secondary>
<Footnotes>
<Footnote id="f00018">
<FootnoteText>
<Para>
<Text>
Section 359(1) was amended by the Financial Services Act
<Citation URI="http://www.legislation.gov.uk/id/ukpga/2012/21" id="c00033" Class="UnitedKingdomPublicGeneralAct" Year="2012" Number="0021">2012 (c. 21)</Citation>
.
</Text>
</Para>
</FootnoteText>
</Footnote>
</Footnotes>
<Commentaries>
<Commentary Type="I" id="key-441705ed78520b9e68e0865c052e2204">
<Para>
<Text>
Reg. 10 in force at 8.7.2021, see
<CitationSubRef id="n6ba9ea7f0752c0a5" SectionRef="regulation-2" URI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/2" Operative="true">reg. 2</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="key-46ba53227e330d58caee99f88994c728" Type="F">
<Para>
<Text>
Words in
<CitationSubRef id="c91abeq55-00015" SectionRef="regulation-10-2-b" URI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/10/2/b">reg. 10(2)(b)</CitationSubRef>
omitted (4.1.2024) by virtue of
<Citation URI="http://www.legislation.gov.uk/id/uksi/2023/1399" id="c91abeq55-00016" Class="UnitedKingdomStatutoryInstrument" Year="2023" Number="1399" Title="The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023">The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023 (S.I. 2023/1399)</Citation>
,
<CitationSubRef CitationRef="c91abeq55-00016" id="c91abeq55-00017" SectionRef="regulation-1-2" URI="http://www.legislation.gov.uk/id/uksi/2023/1399/regulation/1/2">regs. 1(2)</CitationSubRef>
,
<CitationSubRef CitationRef="c91abeq55-00016" id="c91abeq55-00018" SectionRef="regulation-8-b" URI="http://www.legislation.gov.uk/id/uksi/2023/1399/regulation/8/b" Operative="true">8(b)</CitationSubRef>
</Text>
</Para>
</Commentary>
<Commentary id="key-c105686a8a3843ab673a1094d2c7781f" Type="F">
<Para>
<Text>
Words in
<CitationSubRef id="c91abeq55-00006" SectionRef="regulation-10-2" URI="http://www.legislation.gov.uk/id/uksi/2021/716/regulation/10/2">reg. 10(2)</CitationSubRef>
omitted (4.1.2024) by virtue of
<Citation URI="http://www.legislation.gov.uk/id/uksi/2023/1399" id="c91abeq55-00007" Class="UnitedKingdomStatutoryInstrument" Year="2023" Number="1399" Title="The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023">The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023 (S.I. 2023/1399)</Citation>
,
<CitationSubRef CitationRef="c91abeq55-00007" id="c91abeq55-00008" SectionRef="regulation-1-2" URI="http://www.legislation.gov.uk/id/uksi/2023/1399/regulation/1/2">regs. 1(2)</CitationSubRef>
,
<CitationSubRef CitationRef="c91abeq55-00007" id="c91abeq55-00009" SectionRef="regulation-8-a" URI="http://www.legislation.gov.uk/id/uksi/2023/1399/regulation/8/a" Operative="true">8(a)</CitationSubRef>
</Text>
</Para>
</Commentary>
</Commentaries>
</Legislation>