PART 2Consequential amendments of primary legislation
The Financial Services and Markets Act 20004
1
The Financial Services and Markets Act 20007 is amended as follows.
2
In section 355 (interpretation of Part 24 (insolvency)), in subsection (1)—
a
after the definition of “court” insert—
“creditors’ decision procedure” has the meaning given by section 379ZA(11)8 of the 1986 Act;
b
at the end insert—
“qualifying decision procedure” has the meaning given by section 246ZE(11) of the 1986 Act.
3
In section 3579 (powers of FCA and PRA to participate in proceedings: individual voluntary arrangements)—
a
in subsection (2) for “(3)” substitute “(2A)”;
b
after subsection (2) insert—
2A
Where under section 257 of the 1986 Act the individual’s creditors are asked to decide whether to approve the proposed voluntary arrangement—
a
notice of the creditors’ decision procedure must be given to the appropriate regulator; and
b
the appropriate regulator or a person appointed by the appropriate regulator is entitled to participate in (but not vote in) the creditors’ decision procedure by which the decision is made10.
2B
Notice of the decision made by the creditors’ decision procedure is to be given to the appropriate regulator by the nominee or the nominee’s replacement under section 256(3) or 256A(4) of the 1986 Act.
c
in subsection (3) for “section 257 of the 1986 Act (or Article 231 of the 1989 Order)” substitute “Article 231 of the 1989 Order”; and
d
in subsection (7) for paragraph (a) substitute—
a
in the case of a PRA-authorised person, each of the FCA and the PRA, except that the references in subsections (2A)(b) and (3) to a person appointed by the appropriate regulator are to be read as references to a person appointed by either the FCA or the PRA;
4
In section 36211 (powers of FCA and PRA to participate in proceedings: administration)—
a
after subsection (5) insert—
5A
The appropriate regulator or a person appointed by the appropriate regulator is entitled to participate in (but not vote in) a qualifying decision procedure by which a decision about any matter is sought from the creditors of the company or partnership.
b
for subsection (7) substitute—
7
“The appropriate regulator” means—
a
where the company or partnership is a PRA-regulated person, each of the FCA and the PRA, except that the references in subsections (5) and (5A) to a person appointed by the appropriate regulator are to be read as references to a person appointed by either the FCA or the PRA;
b
in any other case, the FCA.
5
In section 36512 (powers of FCA and PRA to participate in proceedings: voluntary winding up)—
a
after subsection (5) insert—
5A
The appropriate regulator or a person appointed by the appropriate regulator is entitled to participate in (but not vote in) a qualifying decision procedure by which a decision about any matter is sought from the creditors of the company.
b
for subsection (8) substitute—
8
“The appropriate regulator” means—
a
where the company is a PRA-authorised person, each of the FCA and the PRA, except that the references in subsections (5) and (5A) to a person appointed by the appropriate regulator are to be read as references to a person appointed by either the FCA or the PRA;
b
in any other case, the FCA.
6
In section 37113 (powers of FCA and PRA to participate in proceedings: winding up by the court)—
a
after subsection (4) insert—
4A
The appropriate regulator or a person appointed by the appropriate regulator is entitled to participate in (but not vote in) a qualifying decision procedure by which a decision about any matter is sought from the creditors of the body.
b
for subsection (6) substitute—
6
“The appropriate regulator” means—
a
where the body is a PRA-regulated person, each of the FCA and the PRA, except that the references in subsections (4) and (4A) to a person appointed by the appropriate regulator are to be read as references to a person appointed by either the FCA or the PRA;
b
in any other case, the FCA.
7
In section 37414 (powers of FCA and PRA to participate in proceedings: bankruptcy)—
a
after subsection (4) insert—
4A
The appropriate regulator or a person appointed by the appropriate regulator is entitled to participate in (but not vote in) a creditors’ decision procedure by which a decision about any matter is sought from the creditors of the individual or entity.
b
for subsection (7) substitute—
7
“The appropriate regulator” means—
a
where the individual or entity is a PRA-regulated person, each of the FCA and the PRA, except that the references in subsections (4) and (4A) to a person appointed by the appropriate regulator are to be read as references to a person appointed by either the FCA or the PRA;
b
in any other case, the FCA.