The Payment and Electronic Money Institution Insolvency Regulations 2021

Notice to FCA: other proceedings

11.—(1) An application for a Schedule B1 administration order in respect of an institution may not be determined unless all of Conditions 1 to 4 are satisfied.

(2) An application for an order under regulation 5 of the IBSAR 2011 in respect of an institution may not be determined unless all of Conditions 1 to 4 are satisfied.

(3) A petition for a winding-up order in respect of an institution may not be determined unless all of Conditions 1 to 4 are satisfied.

(4) A resolution for voluntary winding up of an institution may not be made unless all of Conditions 1 to 4 are satisfied.

(5) A Schedule B1 administrator of an institution may not be appointed unless all of Conditions 1 to 4 are satisfied.

(6) Condition 1 is that the FCA has been notified—

(a) by the applicant for a Schedule B1 administration order, that the application has been made,

(b) by the applicant for an order under regulation 5 of the IBSAR 2011, that the application has been made,

(c) by the petitioner for a winding-up order, that the petition has been presented,

(d) by the institution, that a resolution for voluntary winding up may be made, or

(e) by the person proposing to appoint a Schedule B1 administrator, of the proposed appointment.

(7) Condition 2 is that a copy of the notice complying with Condition 1 has been filed (in Scotland, lodged) with the court and made available for public inspection by the court.

(8) Condition 3 is that—

(a) the period of 2 weeks, beginning with the day on which the notice is received by the FCA, has ended, or

(b) the FCA has informed the person who gave the notice that it consents to the proceedings to which the notice relates going ahead.

(9) Condition 4 is that no application for a special administration order is pending.

(10) Where the FCA receives notice under Condition 1, it must inform the person who gave the notice, within the period in Condition 3—

(a) whether or not it consents to the proceedings to which the notice relates going ahead,

(b) whether or not it intends to apply for those (or alternative) proceedings itself, or

(c) whether it intends to apply for a special administration order.

(11) Arranging for the giving of the notice in order to satisfy Condition 1 may be treated as a step with a view to minimising the potential loss to the institution’s creditors for the purpose of section 214 of the IA 1986 as applied and modified by these Regulations.