The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023

references to a provision of the I(NI)O 1989 which is applied and modified by these Regulations were to the provision as applied and modified by these Regulations,

references to the liquidator were to the administrator,

references to winding up were to special administration,

references to winding up by the court were to the imposition of special administration by order of the court,

references to being wound up under Part 5 or 6 of the I(NI)O 1989 were to being in special administration,

references to the commencement of winding up were to the commencement of special administration,

references to going into liquidation were to entering special administration,

references to liquidation or to insolvent liquidation were to special administration,

references to a winding-up order were to a special administration order, and

references to a company were to an institution.

in paragraphs (1) and (2) the references to a liquidation committee were to a creditors’ committee;

a user or holder may also apply to the court under paragraph (3);

in Schedule 2, paragraphs 4 to 7, 8 to 11 and 13 were omitted and in paragraph 14 the reference to winding up the company’s affairs and distributing its assets were to pursuing the special administration objectives.

in paragraph (1) “whether by the High Court or voluntarily”, were omitted;

in paragraph (2), “or has passed a resolution for voluntary winding up”, were omitted.

“whether by the High Court or voluntarily”, were omitted;

the reference to the company’s creditors included users or holders.

references to the liquidating company were to a company in special administration;

paragraphs (7) and (8)(3) were omitted.

in paragraph (2), the first reference to the official receiver were omitted and the second reference were to the Secretary of State;

in paragraph (4), the reference to paragraph (3) were to paragraph (2);

paragraphs (3), (5) and (6) were omitted.

for paragraph (1) there were substituted—

“(1) This Article applies where a company enters special administration.”;

the references to the office-holder were references to the administrator.

paragraphs (1) and (4)(b) to (d) were omitted;

the references to the office-holder were references to the administrator.

for paragraph (1) there were substituted—

“(1) This Article applies where a company enters special administration.”;

the references to the office-holder were references to the administrator.

for paragraph (1) there were substituted—

“(1) This Article applies where a company enters special administration.”;

the references to the office-holder were references to the administrator.

in sub-paragraph (2)(a), the reference to being unable to pay debts were to be read in accordance with section 93(4) of the BA 2009 (as applied and modified by the EMR 2011 and the PSR 2017);

sub-paragraphs (1)(d) and (3)(a) to (d) were omitted.

in paragraph (3)(c), the references to an administration application and administration order were references to an application for special administration and special administration order respectively;

in sub-paragraphs (4)(a) and (b), the reference to being unable to pay its debts were to be read in accordance with section 93(4) of the BA 2009 (as applied and modified by the EMR 2011 and the PSR 2017);

subparagraphs (3)(d) and (5)(a) to (c) were omitted.

for paragraph (1) there were substituted—

“(1) This Article applies where a company enters special administration.”;

the reference to the office-holder were references to the administrator.

the reference to acting as an insolvency practitioner were to acting as the administrator

paragraph (2) were omitted.

in Article 349, references to acting as an insolvency practitioner were to acting as the administrator;

in paragraph (2)(14) of that Article, after “authorised” there were inserted “to act as an insolvency practitioner”;

in Articles 349A, 349B(1) and (2), 350O(1)(b) and 350R(3)(b) references to authorisation or permission to act as an insolvency practitioner in relation to (or only in relation to) companies, the reference to companies had effect as a reference to companies without modification by this Table

an order under Article 350 had effect in relation to any provision applied for the purposes of special administration;

in Articles 350Q(2)(b) and 350S(3)(e) the references to a company had effect as references to a company without modification by this Table.

the references to “this Order” includes these Regulations;

paragraph (1)(za) and paragraph (2)(b) were omitted;

there were no reference to the official receiver;

proceedings which would be under the I(NI)O 1989 were under the Payment and Electronic Money Institution Insolvency Regulations 2021.

references to a provision of the I(NI)O 1989 which is applied and modified by these Regulations were to the provision as applied and modified by these Regulations,

references to the administrator were to the administrator appointed under regulation 7,

references to administration were to special administration,

references to an administration order were to a special administration order,

references to a company were to an institution, and

references to the purpose of administration were to the special administration objectives.

subparagraph (7) also included a reference to paragraph 45 not preventing or requiring the permission of the court for an application by the FCA for a special administration order;

sub-paragraph (7)(b) to (d) were omitted.

in sub-paragraph (3)(a), in addition to obtaining the list of creditors, the administrator were also required to obtain as complete a list as possible of the users or holders of the institution;

in sub-paragraph (3)(b), the administrator were also required to send a notice of their appointment to each user or holder of whose claim and address the administrator is aware;

where the special administration application has not been made by the FCA, notice of the administrator’s appointment were also required to be sent under sub-paragraph (5) to the FCA;

sub-paragraphs (6)(b) and (c) were omitted.

sub-paragraph (2)(b) were omitted;

in sub-paragraph (4), the administrator were also required to send a copy of the statement of proposals to every user or holder of whose claim the administrator is aware and who the administrator has a means of contacting, and to the FCA;

the administrator were also required to give notice that the statement of proposals is to be provided free of charge to a payment system operator who applies in writing to a specified address.

in sub-paragraph (1), the administrator were also required to summon the users or holders referred to in paragraph 50(4) to the meeting of creditors and to give such users or holders notice under sub-paragraph (1)(b);

the FCA were empowered to appoint a person to attend a meeting of creditors and make representations as to any matter for decision.

there were a requirement that each copy of an administrator’s proposals sent to a user or holder or the FCA under paragraph 50 be accompanied by an invitation to the initial creditor’s meeting;

the application of paragraph 52 is subject to regulation 38(6).

there were a requirement that special administration insolvency rules prescribe how users or holders are to vote at meetings of creditors;

in sub-paragraph (2), if the FCA has not appointed a person to attend the meeting, the administrator were also required to report any decision taken to the FCA.

if the revision proposed by the administrator affects both creditors and users or holders, every reference to creditors included users or holders;

if the administrator thinks that the revision proposed only affects either creditors or users or holders, it only applied to the affected party and required the party not affected to be informed of the revision;

the FCA were required to be invited to the creditors’ meeting mentioned in sub-paragraph (2)(a);

the statement of the proposed revision mentioned in sub-paragraph (2)(b) were also required to be sent to the FCA.

in making an order under sub-paragraph (2) the court were required to have regard to the special administration objectives;

sub-paragraph (2)(d) were omitted.

a creditors’ committee were only able to be established by a creditors’ meeting to which creditors and users or holders have both been given notice;

the FCA were empowered to appoint a person to attend a meeting of the creditors’ committee and make representations as to any matter for decision;

there were a requirement that special administration insolvency rules prescribe that, where a meeting of creditors resolves to establish a creditors’ committee, the makeup of the creditors’ committee is a reflection of all parties with an interest in the achievement of the special administration objectives.

in sub-paragraph (1), the administrator’s power were to do anything necessary or expedient in pursuit of Objectives 1 to 3;

in sub-paragraph (2), the reference to a provision of the Schedule expressly permitting the administrator to do a specified thing included a provision of these Regulations expressly permitting the administrator to do a specified thing;

at the end there were inserted—

“(4) The administrator is an officer of the court.”.

in paragraph (1)—

sub-paragraph (3) were omitted.

proposals agreed with the FCA under regulations 39 or 40; or

proposals in respect of which the court has made an order dispensing with the need for agreement in accordance with those regulations.

the FCA were also empowered to make an application to the court, on the grounds that—

a user or holder were also empowered to make an application to the court under sub-paragraph (1) or (2);

any of the following persons were also empowered to make an application on the grounds that the administrator is not taking any action in response to a request from that person under regulation 35(3) 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 institution—

the following persons were also empowered to make an application on the grounds that the administrator has made, or proposes to make, a PPTA in contravention of regulation 32 or 34—

any person, other than the institution, who is party to an arrangement of a kind referred to in regulation 31(1) were also empowered to make an application on the grounds that the administrator has made, or proposes to make, a relevant transfer in contravention of that regulation;

where an application is made on the grounds that the administrator has made a relevant transfer in contravention of regulation 34—

where an application is made on the grounds that the administrator has made a relevant transfer in contravention of regulation 32 or 33, the court were also empowered to make such order as it thinks fit for restoring the position to what it would have been if the transfer had not been made in contravention of the regulation concerned;

where the FCA has given a direction under regulation 38 which has not been withdrawn, the court did not have power to make an order if it would impede or prevent compliance with the direction.

the administrator were only empowered to send a notice under sub-paragraph (1) if the institution no longer holds relevant funds;

in sub-paragraph (5)(b), a copy of the notice were also required to be sent be sent to every user or holder of the institution of whom the administrator is aware and the FCA.

where the administrator was appointed by the court on the application of the FCA or the Secretary of State, the notice of the resignation given in accordance with sub-paragraph (2)(a) were also required to be given to the applicant;

sub-paragraph (2)(b) to (d) were omitted

where the administrator was appointed by the court on the application of the FCA or the Secretary of State, the notice given in accordance with sub-paragraph (2)(a) were also required to be given to the applicant;

sub-paragraphs (2)(b) to (d) were omitted.

in sub-paragraph (3), the former administrator’s remuneration and expenses incurred in respect of the pursuit of Objective 1 are to be charged on and payable out of relevant funds;

in sub-paragraph (4)(b), the reference to any charge arising under sub-paragraph (3) did not include a charge on relevant funds.

in sub-paragraph (2), the reference to paragraph 13(1)(a) to (f) were to regulation 8(1);

sub-paragraphs (3) to (5) were omitted.

the administrator were also required to obtain consent of those users or holders whose claims amount to more than 50% of the total amount of claims for relevant funds, disregarding the claims of those users or holders who were sent a copy of the statement of proposals but who did not respond to an invitation to give or withhold consent;

sub-paragraph (3) were omitted.