Regulation 7 Safeguards for the operation of certain financial marketsI1

In this regulation—

• “competent officer” and “qualifying agent” have the meaning given in regulation 5(6) of the 2004 Regulations;

• “equivalent provision” means provision in the law of an EEA State which has an effect which is equivalent to the provision in regulation 5(1) and (2) of the 2004 Regulations;

• “relevant enactments” means Part 7 of the Companies Act 1989 M1, Part 3 of the Financial Markets and Insolvency (Settlement and Finality) Regulations 1999 M2 and Part 3 of the Financial Collateral Arrangements (No. 2) Regulations 2003 M3 (“the 2003 Regulations”);

• “reorganisation measure” means any measure taken under the law of insolvency of the United Kingdom which is equivalent to a directive reorganisation measure;

• “winding up proceedings” means any proceedings commenced under the law of insolvency of the United Kingdom which are equivalent to directive winding-up proceedings;

• “UK credit institution” has the meaning given in regulation 2(1) of the 2004 Regulations;

• “UK group company” has the meaning given in regulation 44(b) of the 2004 Regulations; and

• “UK investment firm” has the meaning given in regulation 39(b) of the 2004 Regulations.

This regulation applies where, by virtue of regulation 6, Part 2 of the 2004 Regulations continues to have effect in relation to a relevant institution.

A competent officer or a qualifying agent, in exercising functions of the kind mentioned in regulation 5(2) of the 2004 Regulations, may not take any action which would, in the case of a reorganisation measure or winding up proceedings—

Paragraph (5) has effect where the court is to exercise powers under the general law of insolvency of the United Kingdom for the purposes of, or in connection with, the relevant measure or relevant proceedings.

The court may not, in exercise of those powers, grant any relief, or modify any relief already granted, or provide any co-operation or co-ordination if and to the extent that such relief or modified relief or co-operation or co-ordination would, in the case of a reorganisation measure or winding up proceedings—