# The Banks (Former Authorised Institutions) (Insolvency) Order 2006, Note: Explanatory note


(This note is not part of the Order)
This Order makes provision for the modified application of Part II of, and Schedule B1 to, the Insolvency Act 1986 (c.45) to any company within the meaning of section 735(1) of the Companies Act 1985 (c.6) that—
(a) has a liability in respect of a deposit which it accepted in accordance with the Banking Act 1979 (c.37) or 1987 (c.22), but
(b) does not have permission under Part IV of the Financial Services and Markets Act 2000 (c.8) to accept deposits.
The Schedule to the Order sets out modifications of Schedule B1 in its application to such companies. Broadly speaking these confer rights on the Financial Services Authority to participate in administration proceedings that are commenced as a result of the application of this Order. The Order is made as a consequence of the amendments made to Part II of the Insolvency Act 1986 by the Enterprise Act 2002 (c.40) and revokes the Banks (Administration Proceedings) Order 1989 (S.I.1989/1276) subject to savings (see article 2).
No regulatory impact assessment has been prepared in relation to this Order. A regulatory impact assessment was prepared in relation to the Enterprise Act 2002 and copies of this are available from The Policy Unit, The Insolvency Service, 21 Bloomsbury Street, London WC1B 3QW.

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Source: https://www.legislation.gov.uk/uksi/2006/3107/note (the official version)
Page: https://openlegislation.uk/banks-former-authorised-institutions-insolvency-order-2006/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.