{
  "url": "https://openlegislation.uk/bank-insolvency-england-and-wales-rules-2009/note",
  "json_url": "https://openlegislation.uk/bank-insolvency-england-and-wales-rules-2009/note.json",
  "legislation": "uksi/2009/356",
  "legislation_title": "The Bank Insolvency (England and Wales) Rules 2009",
  "legislation_url": "https://openlegislation.uk/bank-insolvency-england-and-wales-rules-2009",
  "path": "note",
  "kind": "note",
  "number": null,
  "heading": "Explanatory note",
  "text": "(This note is not part of the Rules)\nThese Rules set out the procedure for the bank insolvency process under Part 2 of the Banking Act 2009 (c. 1).\nThe main features of bank insolvency are as follows. In the event of a deposit-taking bank becoming insolvent, it enables those depositors who are eligible for compensation under the Financial Services Compensation Scheme (FSCS) to either –\n(a) receive compensation for their lost deposits as soon as possible after the bank goes into bank insolvency; or\n(b) have their account transferred to a different bank.\nThis is the first objective of the insolvency process.\nThe procedure can only be initiated by the Bank of England, the Financial Services Authority or the Secretary of State by application to the court. The court then makes a bank insolvency order, appointing a bank liquidator. In the initial stages, the bank liquidator is accountable to a liquidation committee formed of the FSA, the Bank of England and the FSCS.\nOnce the bank liquidator considers that the first objective is achieved, the liquidation committee will pass a resolution to that effect and the bank insolvency will move to the second objective which is to wind up the affairs of the bank so as to achieve the best results for the creditors as a whole.\nThe Rules are based on, and follow the same order as, the Insolvency Rules 1986 (S.I. 1986/1925) (“the 1986 Rules”) and certain provisions of the 1986 Rules are applied to these Rules, subject to a number of general and specific modifications.\nPart 2 of the Rules sets out the application process for a bank insolvency order.\nPart 3 sets out the procedure for appointing a provisional bank liquidator.\nParts 4 to 8 set out the procedure concerning the creditors and contributories.\nPart 9 sets out provisions concerning the bank liquidator.\nPart 10 sets out provisions concerning the liquidation committee.\nParts 11- 17 set out provisions relating to the bank’s assets and other miscellaneous provisions.\nPart 18 sets out court procedure and practice.\nPart 19 sets out provisions re proxies and company representation.\nPart 20 sets out provisions concerning the examination of persons concerned in bank insolvency.\nPart 21 sets out provisions relating to the declaration of dividend.\nParts 22 and 23 set out miscellaneous and general provisions relating to the procedure.\nAn Impact Assessment of the effect of the Banking Act 2009 is available on HM Treasury’s website (www.hm-treasury.gov.uk).",
  "extent": "E+W",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/uksi/2009/356/note",
    "retrieved_at": "2026-10-29T03:17:34.546410+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}