{
  "url": "https://openlegislation.uk/companies-act-1989/section-167",
  "json_url": "https://openlegislation.uk/companies-act-1989/section-167.json",
  "legislation": "ukpga/1989/40",
  "legislation_title": "Companies Act 1989",
  "legislation_url": "https://openlegislation.uk/companies-act-1989",
  "path": "section/167",
  "kind": "section",
  "number": "167",
  "heading": "Application to determine whether default proceedings to be taken.",
  "text": "(1) This section applies where a relevant insolvency event has occurred in the case of—\n(a) a recognised investment exchange or a member or designated non-member of a recognised investment exchange,...\n(b) a recognised clearing house or a member of a recognised clearing house, ...\n(ba) a recognised CSD or a member of a recognised CSD, or\n(c) a client which is providing indirect clearing services to an indirect client.\nThe person referred to in paragraphs (a) to (c) in whose case a relevant insolvency event has occurred is referred to below as “the person in default”.\n(1A) For the purposes of this section a “relevant insolvency event” occurs where—\n(a) a bankruptcy order is made,\n(b) an award of sequestration is made,\n(c) an order appointing an interim receiver is made,\n(d) an administration or winding up order is made,\n(e) an administrator is appointed under paragraph 14 of Schedule B1 to the Insolvency Act 1986 (appointment by holder of qualifying floating charge) or under paragraph 22 of that Schedule (appointment by company or directors),\n(f) a resolution for voluntary winding up is passed, or\n(g) an order appointing a provisional liquidator is made.\n(1B) Where in relation to a person in default a recognised body (“the responsible recognised body”)—\n(a) has power under its default rules to take action in consequence of the relevant insolvency event or the matters giving rise to it, but\n(b) has not done so,\na relevant office-holder appointed in connection with or in consequence of the relevant insolvency event may apply to the appropriate regulator.\n(2) The application shall specify the responsible recognised body and the grounds on which it is made.\n(3) On receipt of the application the appropriate regulator shall notify the responsible recognised body, and unless within three business days after the day on which the notice is received the responsible recognised body —\n(a) takes action under its default rules, or\n(b) notifies the appropriate regulator that it proposes to do so forthwith,\nthen, subject as follows, the provisions of sections 158 to 165 above do not apply in relation to market contracts to which the person in default is a party or to anything done by the responsible recognised body for the purposes of, or in connection with, the settlement of any such contract.\nFor this purpose a “business day” means any day which is not a Saturday or Sunday, Christmas Day, Good Friday or a bank holiday in any part of the United Kingdom under the Banking and Financial Dealings Act 1971.\n(4) The provisions of sections 158 to 165 are not disapplied if before the end of the period mentioned in subsection (3) the appropriate regulator gives the responsible recognised body a direction under section 166(2)(a) (direction to take action under default rules).\nNo such direction may be given after the end of that period.\n(5) If the responsible recognised body notifies the appropriate regulator that it proposes to take action under its default rules forthwith, it shall do so; and that duty is enforceable, on the application of the appropriate regulator, by injunction or, in Scotland, by an order under section 45 of the Court of Session Act 1988.\n(6) “The appropriate regulator”—\n(a) in relation to a recognised investment exchange, means the FCA, and\n(b) in relation to a recognised clearing house or recognised CSD, means the Bank of England.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [
    {
      "type": "F",
      "label": "F1",
      "text": "S. 167(1)-(1B) substituted for s. 167(1)(1A) (15.6.2009) by The Financial Markets and Insolvency Regulations 2009 (S.I. 2009/853), regs. 1(1), 2(10)(a) (with reg. 1(2)(3))"
    },
    {
      "type": "F",
      "label": "F2",
      "text": "Word in s. 167(1)(a) omitted (26.8.2013) by virtue of The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) (No. 2) Regulations 2013 (S.I. 2013/1908), regs. 1(3)(c), 2(7)(a)"
    },
    {
      "type": "F",
      "label": "F3",
      "text": "S. 167(1)(c) and word inserted (26.8.2013) by The Financial Services and Markets Act 2000 (Over the Counter Derivatives, Central Counterparties and Trade Repositories) (No. 2) Regulations 2013 (S.I. 2013/1908), regs. 1(3)(c), 2(7)(b)"
    },
    {
      "type": "F",
      "label": "F4",
      "text": "Word in s. 167(1)(b) omitted (28.11.2017) by virtue of The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 3(14)(a)(i) (with regs. 7(4), 9(1))"
    },
    {
      "type": "F",
      "label": "F5",
      "text": "S. 167(1)(ba) inserted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 3(14)(a)(ii) (with regs. 7(4), 9(1))"
    },
    {
      "type": "F",
      "label": "F6",
      "text": "Words in s. 167(1) substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 3(14)(a)(iii) (with regs. 7(4), 9(1))"
    },
    {
      "type": "F",
      "label": "F7",
      "text": "Words in s. 167(1B) substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 3(14)(b) (with regs. 7(4), 9(1))"
    },
    {
      "type": "F",
      "label": "F8",
      "text": "Words in s. 167(1B) substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 3(14)(c) (with regs. 7(4), 9(1))"
    },
    {
      "type": "F",
      "label": "F9",
      "text": "Words in s. 167(1B) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 67(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch."
    },
    {
      "type": "F",
      "label": "F10",
      "text": "Words in s. 167(2) substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 3(14)(c) (with regs. 7(4), 9(1))"
    },
    {
      "type": "F",
      "label": "F11",
      "text": "Words in s. 167(3) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 67(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch."
    },
    {
      "type": "F",
      "label": "F12",
      "text": "Words in s. 167(3) substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 3(14)(c) (with regs. 7(4), 9(1))"
    },
    {
      "type": "F",
      "label": "F13",
      "text": "Words in s. 167(3) substituted (15.6.2009) by The Financial Markets and Insolvency Regulations 2009 (S.I. 2009/853), regs. 1(1), 2(10)(c)(ii) (with reg. 1(2)(3))"
    },
    {
      "type": "F",
      "label": "F14",
      "text": "Words in s. 167(4) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 67(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch."
    },
    {
      "type": "F",
      "label": "F15",
      "text": "Words in s. 167(4) substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 3(14)(c) (with regs. 7(4), 9(1))"
    },
    {
      "type": "F",
      "label": "F16",
      "text": "Words in s. 167(5) substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 3(14)(c) (with regs. 7(4), 9(1))"
    },
    {
      "type": "F",
      "label": "F17",
      "text": "Words in s. 167(5) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 18 para. 67(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch."
    },
    {
      "type": "F",
      "label": "F18",
      "text": "S. 167(6) substituted (28.11.2017) by The Central Securities Depositories Regulations 2017 (S.I. 2017/1064), regs. 1, 3(14)(d) (with regs. 7(4), 9(1))"
    },
    {
      "type": "M",
      "label": "M1",
      "text": "1971 c. 80."
    },
    {
      "type": "M",
      "label": "M2",
      "text": "1988 c. 36."
    },
    {
      "type": "C",
      "label": "C1",
      "text": "S. 167 applied (with modifications) (1.4.2013) by The Financial Services Act 2012 (Transitional Provisions) (Miscellaneous Provisions) Order 2013 (S.I. 2013/442), arts. 1(3), 67(4)"
    },
    {
      "type": "I",
      "label": "I1",
      "text": "S. 167 wholly in force at 1.10.1991; s. 167 in force for certain purposes at 25.4.1991 see s. 215 and S.I. 1991/878, art. 2, Sch. and wholly in force at 1.10.1991 see S.I. 1991/2173, art. 2"
    }
  ],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukpga/1989/40/section/167",
    "retrieved_at": "2026-10-29T09:45:50.516840+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."
}