# The Building Society Insolvency Rules (Northern Ireland) 2014, Note: Explanatory note (This note is not part of the Rules) 1 These Rules set out the procedure for the building society insolvency process under Part 2 of the Banking Act 2009 (c. 1). The main features of building society insolvency are that, in the event of a building society becoming insolvent, it enables those depositors who are eligible for compensation under the Financial Services Compensation Scheme (FSCS) to either receive compensation for their unpaid deposits as soon as possible after the society goes into building society. This is the first objective of the insolvency process. The procedure can only be initiated by the Bank of England or the Financial Conduct Authority or the Prudential Regulation Authority (the appropriate regulator) by application to the court. The court then makes a building society insolvency order, appointing a building society liquidator. In the initial stages, the building society liquidator is accountable to a liquidation committee comprising the appropriate regulator, the Bank of England and the FSCS. Once the building society liquidator considers that the first objective is achieved, the liquidation committee will pass a resolution to that effect and the building society insolvency will move to the second objective which is to wind up the affairs of the society so as to achieve the best results for the creditors as a whole. The Rules are based on the Insolvency Rules (Northern Ireland) 1991 (S.R.1991 No. 364) (“the 1991 Rules”) and certain provisions of the 1991 Rules are applied to these Rules, subject to a number of general and specific modifications. Part 1 contains general provisions. Part 2 sets out the application process for a building society insolvency order. Part 3 sets out the procedure for appointing a provisional building society liquidator. Parts 4 to 8 set out the procedure concerning the statement of affairs, creditors and contributories. Part 9 sets out provisions concerning the building society liquidator. Part 10 sets out provisions concerning the liquidation committee. Parts 11 to 17 set out provisions relating to the building society’s assets and other miscellaneous provisions. Part 18 sets out court procedure and practice. Part 19 sets out provisions on proxies. Part 20 sets out provisions concerning the examination of persons concerned in building society insolvency. Part 21 sets out provisions relating to the declaration and payment of dividend. Parts 22 and 23 set out miscellaneous and general and interpretative provisions relating to the procedure. An Impact Assessment relating to the rules for building society insolvency and special administration may be obtained from the Financial Regulatory Strategy Team, HM Treasury, 1 Horse Guards Road, London, SW1A 2HQ. It is also available on HM Treasury’s website (www.hm-treasury.gov.uk). --- Source: https://www.legislation.gov.uk/nisr/2014/41/note (the official version) Page: https://openlegislation.uk/building-society-insolvency-rules-northern-ireland-2014/note Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.