Explanatory note

These Regulations make various amendments to the Insolvency (Amendment) (EU Exit) Regulations 2019 (“the principal Regulations”). The principal Regulations (which, with limited exceptions, come into force on exit day) address deficiencies in retained EU law that will arise from the absence of mutual application of the EU Regulation on insolvency proceedings (Regulation (EU) 2015/848) (“the EUIR”).

The amendments are set out in the Schedule to these Regulations. Paragraph 3 of the Schedule amends the principal Regulations additionally to repeal Article 25 of the EUIR, which came into force on 26th June 2019. The amendments to the Insolvency Act 1986 made by the Small Business, Enterprise and Employment Act 2015 were commenced for Scotland on 6th April 2019. As a result, there are no longer different versions of certain sections of the 1986 Act in force in relation to Scotland and England and Wales and the amendments made by paragraphs 2 and 4 of the Schedule reflect this. Paragraph 5 of the Schedule omits from the principal Regulations the amendments to the Insolvency (Scotland) Rules 1986, following the revocation of those Rules and their re-enactment in the Insolvency (Scotland) (Receivership and Winding up) Rules 2018 and the Insolvency (Scotland) (Company Voluntary Arrangements and Administration) Rules 2018. Paragraph 6 inserts into the principal Regulations a new Part 8A, which amends the Insolvency (Scotland) (Receivership and Winding up) Rules 2018, and a new Part 8B which amends the Insolvency (Scotland) (Company Voluntary Arrangements and Administration) Rules 2018.

In accordance with Government Better Regulation principles, a proportionate analysis of costs and benefits has been completed. This analysis had found that the overall impact on business is likely to be less than £5 million per year. An Explanatory Memorandum is also available with these Regulations on www.legislation.gov.uk.. Copies have been placed in the Libraries of both Houses of Parliament.