{
  "url": "https://openlegislation.uk/draft-investment-bank-special-administration-regulations-2011/schedule-4/paragraph-4",
  "json_url": "https://openlegislation.uk/draft-investment-bank-special-administration-regulations-2011/schedule-4/paragraph-4.json",
  "legislation": "ukdsi/2011/9780111505588",
  "legislation_title": "The Investment Bank Special Administration Regulations 2011",
  "legislation_url": "https://openlegislation.uk/draft-investment-bank-special-administration-regulations-2011",
  "path": "schedule/4/paragraph/4",
  "kind": "paragraph",
  "number": "4",
  "heading": null,
  "text": "(1) The provisions of Schedule B1 as applied by regulation 15 apply in respect of a partnership but where a provision of Schedule B1 is listed in Table 1 below, that provision shall apply—\n(a) as modified by Schedule 2 to the 1994 Order; and\n(b) with the modifications set out in column 3 of Table 1,\ninstead of as modified in accordance with regulation 15.\n(2) In the provisions referred to in the second column of Table 1, a reference to—\n(a) a provision of the Insolvency Act is to that provision as applied by regulation 15 (subject to sub-paragraph (1));\n(b) action includes a reference to inaction;\n(c) the administrator means the administrator appointed under regulation 7;\n(d) the court means the court as defined in regulation 2;\n(e) the creditors’ meeting has the meaning given by paragraph 50 of Schedule B1 (as applied by regulation 15);\n(f) entering administration means entering special administration;\n(g) a hire purchase agreement includes a conditional sale agreement, a chattel leasing agreement and a retention of title agreement;\n(h) an insolvency order is to a special administration order;\n(i) an insolvency petition means an application for a special administration order;\n(j) insolvency proceedings means special administration;\n(k) market value means the amount which would be realised on a sale of property in the open market by a willing vendor;\n(l) the purpose of administration means the pursuit of the special administration objectives;\n(m) partnership is to an investment bank;\n(n) the partnership being in administration is to the investment bank being in special administration;\n(o) a responsible insolvency practitioner is to the administrator;\n(p) a thing in writing includes a reference to a thing in electronic form; and\n(q) an inability to pay its debts has the meaning given in regulation 2(4).\nTable 1: Applied provisions of the 1994 Order with respect to Schedule B1\nProvision of Schedule 2\nSubject\nModification or comment\nPara 17\nPara 42: moratorium on insolvency proceedings\nIn the modified paragraph 42, sub-paragraph (5)(a) is not applied.\nPara 18\nPara 43: moratorium on other legal process\nIn the modified paragraph 43, sub-paragraph (6) is not applied.\nPara 19\nPara 47: statement of affairs\nIn the modified paragraph 47, in sub-paragraph (2), the statement must also include particulars (to the extent prescribed) of the client assets held by the investment bank.\nPara 20\nPara 49: administrator’s proposals\nIn the modified paragraph 49—\n(a) sub-paragraph (2)(b) is not applied;\n(b) under sub-paragraph (4), the administrator shall also send a copy of the statement of proposals to—\n(i) every client of the investment bank of whose claim the administrator is aware and has a means of contacting, and\n(ii) the FSA; and\n(c) the administrator shall also give notice in the prescribed manner that the statement of proposals is to be provided free of charge to a market infrastructure body who applies in writing to a specified address.\nPara 22\nPara 61: management\nPara 23\nPara 65: distribution to creditors\nIn the modified paragraph 61, sub-paragraph (3) is not applied.\nPara 24\nPara 69: agency\nPara 25\nPara 73: protection for secured or preferential creditors\nPara 26\nPara 74: challenge to administrator’s conduct\nIn the modified paragraph 74—\n(a) the FSA may also make an application under this modified paragraph on the grounds that—\n(i) the administrator is acting or has acted so as unfairly to harm the interests of some or all of the members, creditors or clients; or\n(ii) the administrator is proposing to act in a way which would unfairly harm the interests of some or all of the members, creditors or clients;\n(b) a client may also make an application under sub-paragraph (1) or (2);\n(c) where the FSA has given a direction under regulation 16 which has not been withdrawn, an order may not be made under this paragraph if it would impede or prevent compliance with the direction; and\n(d) any of the following persons may make an application under this paragraph on the grounds that the administrator is not taking any action in response to a request from that person under regulation 13(2) and that the person is of the opinion that the action requested would not lead to a material reduction in the value of the property of the investment bank—\n(i) the Bank of England,\n(ii) the Treasury,\n(iii) the FSA, or\n(iv) a market infrastructure body.\nPara 28\nPara 84: termination: no more assets for distribution\nIn the modified paragraph 84—\n(a) the administrator shall only file a notice under sub-paragraph (1) if the investment bank no longer holds client assets; and\n(b) in sub-paragraph (5), a copy of the notice shall be sent to every client of the investment bank of whom the administrator is aware and the FSA.\nPara 29\nPara 87: resignation\nIn the modified paragraph 87—\n(a) where the administrator was appointed on the application of the Secretary of State or the FSA, the notice given in accordance with sub-paragraph (2)(a) must also be given to the applicant; and\n(b) sub-paragraphs (2)(b) and (c) are not applied.\nPara 30\nPara 89: disqualification\nIn the modified paragraph 89—\n(a) where the administrator was appointed by the Secretary of State or the FSA, the notice given in accordance with sub-paragraph (2)(a) must also be given to the applicant; and\n(b) sub-paragraphs (2)(b) and (c) are not applied.\nPara 31\nPara 90: replacement\nIn the modified paragraph 90, the reference to paragraphs 91to 93 and 95 is to paragraph 91.\nPara 32\nPara 91: replacement\nIn the modified paragraph 91, the FSA is added to the list of persons who may make an application to appoint an administrator but to whom the restrictions in sub-paragraph (2) apply.\nPara 38\nPara 103: joint administrators\nIn the modified paragraph 103—\n(a) in sub-paragraph (2)(a), the reference to paragraph 12(1)(a) to (c) is to regulation 5(1); and\n(b) sub-paragraphs (3) and (4) are not applied.\nPara 39\nPara 105: majority decision of directors\nParagraph 105 is not applied.\nPara 40\nPara 106: fines\nIn the modified paragraph 106, sub-paragraphs (2)(a), (2)(b), (2)(j) and (2)(k) are not applied.\nPara 42\nParas 112 to 116: Scotland\nParagraphs 112 to 116 are not applied.",
  "extent": null,
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/ukdsi/2011/9780111505588/schedule/4/paragraph/4",
    "retrieved_at": "2026-10-30T14:54:21.376569+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."
}