The Investment Bank Special Administration Regulations 2011

(a) The reference to section 145 is to that section as applied by this paragraph.

(b) The reference to “notice under subsection (1) above” is to notice under paragraph 3(2).

General powers etc.

(a) In subsection (1), the administrator may not rely on subsection (1) for the purpose of recovering property transferred by a property transfer instrument.

(b) Subsection (3)(c), (5) and (6) are not applied.

In Table 1 after subsection (6)—

(a) Paragraph 41 is not applied.

(b) In paragraph 46 —

(i) in sub-paragraph (3)(a), in addition to obtaining the list of creditors, the administrator shall obtain as complete a list as possible of the clients of the investment bank,

(ii) in sub-paragraph (3)(b), the administrator shall send a notice of their appointment to each client of whose claim and address the administrator is aware and to the [F2FCA and, where the investment bank concerned is a PRA-authorised person, the PRA].

(c) In paragraph 47, in sub-paragraph (2), the statement must also include particulars (to the extent prescribed) of the client assets held by the investment bank.

(d) Paragraphs 49 to 54 are not applied: see paragraphs 7 to 14 of this Schedule.

(e) Paragraph 55 is only applied where the Bank of England has given the Objective A Achievement Notice and—

(i) sub-paragraph (1)(a) is not applied,

(ii) in sub-paragraph (1)(b), the meeting referred to is one held under paragraph 12 of this Schedule,

(iii) in making an order under sub-paragraph (2) the court must have regard to the special administration objectives, and

(iv) sub-paragraph (2)(d) is not applied.

(f) In paragraph 56—

(i) before the Bank of England has given an Objective A Achievement Notice, the administrator may comply with a request under sub-paragraph (1)(a) only if satisfied that it will not prejudice the achievement of Objective A, and

(ii) the [F2FCA and, where the investment bank concerned is a PRA-authorised person, the PRA] must be invited to any meeting under this paragraph.

(g) In paragraph 57—

(i) a creditors' committee can only be established by a creditors' meeting of which creditors and clients have been both given notice,

(ii) before the Bank of England has given an Objective A Achievement Notice, the creditors' committee, when exercising functions, must comply with any directions given to it by the Bank of England,

(iii) the [F2FCA and, where the investment bank concerned is a PRA-authorised person, the PRA] may appoint a person to attend a meeting of the creditors' committee and make representations as to any matter for decision,

(iv) the FSCS shall be appointed as a member of the creditors' committee unless it indicates to the administrator that it does not wish to be appointed, and

(v) insolvency rules shall ensure that the make up of the creditors' committee is a reflection of all parties with an interest in the achievement of the special administration objectives.

(h) In paragraph 60 (and Schedule 1) the exercise of powers is subject to the need to prioritise Objective A.

(i) In paragraph 62, the administrator may also call a meeting of clients or contributories.

(j) In paragraph 68—

(i) sub-paragraph (1) includes proposals where a court order has been obtained dispensing with the need for approval in accordance with paragraph 8 or 13 of this Schedule 2, and

(ii) the references to paragraphs 53 and 54 are to paragraphs 7 to 13 of this Schedule.

(k) In paragraph 73—

(i) the reference to the administrator's proposals under paragraph 49 is to the statement of proposals under paragraph 7 of this Schedule, and

(ii) sub-paragraph (2)(d) is not applied.

(l) In paragraph 74—

(i) the [F2FCA and, where the investment bank concerned is a PRA-authorised person, the PRA] may also make an application under sub-paragraph (1) on the grounds that —

(aa) the administrator is acting or has acted so as unfairly to harm the interests of some or all of the members, creditors or clients, or

(bb) the administrator is proposing to act in a way which would unfairly harm the interests of some or all of the members, creditors or clients,

(ii) a client may also make an application under sub-paragraphs (1) and (2), but, until the Bank of England has given an Objective A Achievement Notice, an order may be made on the application of a client only if the court is satisfied that it would not prejudice pursuit of Objective A,

(iii) where the [F3FCA or the PRA] has given a direction under regulation 16, an order may not be made on an application (by persons other than the Bank of England or the [F3FCA or the PRA]) under this paragraph before the direction is withdrawn if it would impede or prevent compliance with the direction, and

(iv) any of the following persons may make an application under this paragraph on the grounds that the administrator is not taking any action in response to a request from that person under regulation 13(2) and that the person is of the opinion that the action requested would not lead to a material reduction in the value of the property of the investment bank—

(i) the Bank of England,

(ii) the Treasury,

(iii) the [F2FCA and, where the investment bank concerned is a PRA-authorised person, the PRA], or

(iv) a market infrastructure body.

(m) A client and the [F2FCA and, where the investment bank concerned is a PRA-authorised person, the PRA] are included in the list of those persons who may make an application under paragraph 75(2).

(n) Paragraph 79 is not applied: see paragraphs 15 and 16 of this Schedule.

(o) In paragraph 91, after the Bank of England has given an Objective A Achievement Notice, the [F2FCA and, where the investment bank concerned is a PRA-authorised person, the PRA] may make an application to appoint an administrator but the restrictions in sub-paragraph (2) apply.

(p) Paragraph 96 is not applied.

(q) In paragraph 98, sub-paragraph (2)(b) is not applied.

(r) In paragraph 99—

(i) in sub-paragraph (3), the former administrator's remuneration and expenses incurred in respect of the pursuit of Objective 1 will be charged on and payable out of client assets, and

(ii) in sub-paragraph (4)(b), the reference to any charge arising under sub-paragraph (3) does not include a charge on client assets.

(s) In paragraph 101, the reference to paragraphs 87 to 99 is to paragraphs 87 to 91, 98 and 99.

(t) In paragraph 103(2), after the Bank of England has given the Objective A Achievement Notice, in sub-paragraph (2)(a), an application to the court under sub-paragraph (1) shall be made by a person listed in regulation 5(1).

(u) In paragraph 106, sub-paragraphs (2)(a), (2)(b) and (2)(l) to (n) are not applied.

(v) In paragraph 107, in considering an application the court must have regard to Objective A and the special administration objectives.

(w) In paragraph 108—

(i) the references in sub-paragraph (1) are to paragraphs 7 to 13 of this Schedule, and

(ii) sub-paragraph (3) is not applied.

(x) In paragraph 111, the definition of “administrator” and sub-paragraph (1A)(b) and (c) are not applied, and the reference in sub-paragraph (1) to paragraph 50 is to paragraph 10 of this Schedule.

Table 2: Applied Provisions: other provisions of the Insolvency Act

In Table 2 after subsection (6)—

(a) In section 135—

(i) the reference in (e) to section 138(2)(a) is to that section as applied by this paragraph, and

(ii) the reference in (f) to Objective 2 is to the special administration objectives.

(b) In section 234—

(i) subsection (1) is not applied, and

(ii) “office holder” means the administrator.

(c) In section 235—

(i) subsections (1) and (4)(b) to (d) are not applied, and

(ii) “office holder” means the administrator.

(d) In section 236—

(i) subsection (1) is not applied, and

(ii) “office holder” means the administrator.

(e) In the application of section 240 to sections 238 and 239—

(i) in subsection (2)(a), the reference to being unable to pay its debts has the meaning given by regulation 2, and

(ii) subsections (1)(d) and (3)(b) to (e) are not applied.

(f) In section 245—

(i) in subsection (4)(a) the reference to being unable to pay its debts has the meaning given by regulation 2, and

(ii) subsections (3)(d) and (5)(b) to (d) are not applied.

(g) In section 246—

(i) subsection (1) is not applied, and

(ii) “office holder” means the administrator.

(h) In section 387, subsections (2)(b), (2A), (3) and (4) to (6) are not applied.

(i) In section 423, subsection (4) is not applied.

(j) In section 432, in subsection (4) ignore all the provisions of the Insolvency Act listed there except for sections 206 to 211.

(k) In section 433, subsection (4) is not applied.

In subsection (5), the reference to section 139 is to paragraph 3(2) above.