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The Payment and Electronic Money Institution Insolvency Regulations 2021 in England

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2021, ISBN 9780348222814

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Draft Regulations laid before Parliament under section 235(2) of the Banking Act 2009 as applied and modified by regulation 24A of, and paragraph 4 of Schedule 2ZA to, the Electronic Money Regulations 2011 and regulation 23A of, and paragraph 4 of Schedule 3A to, the Payment Services Regulations 2017, and paragraph 1(3) of Schedule 7 to the European Union (Withdrawal) Act 2018, for approval by resolution of each House of Parliament.

Financial Services And Markets

Made ***

Coming into force ***

The Treasury make these Regulations in exercise of the powers conferred by—

(a)

sections 233 and 234 of the Banking Act 2009f1 as applied and modified by regulation 24A of, and paragraphs 2 and 3 of Schedule 2ZA to, the Electronic Money Regulations 2011f2 (“EMR 2011”) and regulation 23A of, and paragraphs 2 and 3 of Schedule 3A to, the Payment Services Regulations 2017f3 (“PSR 2017”), and section 259(1) of that Act, and

(b)

in respect of regulation 49 (and regulations 1 to 4 so far as they relate to regulation 49), section 8(1) of, and paragraph 21 of Schedule 7 to, the European Union (Withdrawal) Act 2018f4.

The Treasury have consulted in accordance with section 235(3) of the Banking Act 2009 as applied and modified by regulation 24A of, and paragraph 4 of Schedule 2ZA to, the EMR 2011 and regulation 23A of, and paragraph 4 of Schedule 3A to, the PSR 2017.

A draft of these Regulations has been laid before and approved by a resolution of each House of Parliament in accordance with section 235(2) of the Banking Act 2009 as applied and modified by regulation 24A of, and paragraph 4 of Schedule 2ZA to, the EMR 2011 and regulation 23A of, and paragraph 4 of Schedule 3A to, the PSR 2017, and paragraph 1(3) of Schedule 7 to the European Union (Withdrawal) Act 2018.

Annotations to the whole text

Footnotes

f1

2009 c. 1.

f2

S.I. 2011/99. Regulation 24A and Schedule 2ZA were inserted by S.I. 2020/1275.

f3

S.I. 2017/752. Regulation 23A and Schedule 3A were inserted by S.I. 2020/1275.

f4

2018 c. 16.

Contents

  1. 1Citation
  2. 2Commencement
  3. 3Extent
  4. 4Overview
  5. 5Application: Scottish LLPs and partnerships
  6. 6Definitions
  7. 7Special administration order
  8. 8Application for order
  9. 9Grounds for applying
  10. 10Powers of the court
  11. 11Notice to FCA: other proceedings
  12. 12Special administration objectives
  13. 13Objective 1: initial reconciliation
  14. 14Objective 1: constitution of asset pool
  15. 15Objective 1: monitoring and maintaining asset pool
  16. 16Objective 1: post-administration receipts
  17. 17Objective 1: determining claim entitlements
  18. 18Objective 1: principles of distribution
  19. 19Objective 1: shortfalls in asset pool
  20. 20Objective 1: bar date
  21. 21Objective 1: hard bar date
  22. 22Objective 1: hard bar date: powers of the court
  23. 23Objective 1: interest on relevant funds claims
  24. 24Objectives 1 and 3: transfer arrangements: overview
  25. 25Objectives 1 and 3: TAs: Conditions 1 to 3
  26. 26Objectives 1 and 3: TAs: effect
  27. 27Objectives 1 and 3: TAs: novation of contracts
  28. 28Objectives 1 and 3: TAs: disclosure of information
  29. 29Objectives 1 and 3: PPTAs: Condition 4 and restrictions
  30. 30Objectives 1 and 3: PPTAs: reverse transfers
  31. 31Objectives 1 and 3: PPTAs: set-off and netting
  32. 32Objectives 1 and 3: PPTAs: security interests
  33. 33Objectives 1 and 3: PPTAs capital markets arrangements
  34. 34Objectives 1 and 3: PPTAs: financial markets
  35. 35Objective 2: engagement: payment systems, market disruption and consumer protection
  36. 36Continuity of supply
  37. 37Application of the IA 1986
  38. 38FCA direction
  39. 39Administrator’s proposals in the event of FCA direction
  40. 40Revision of proposals in the event of FCA direction
  41. 41FCA direction withdrawn
  42. 42Safeguarding failures: costs of the administration
  43. 43Successful rescue
  44. 44Dissolution or voluntary arrangement
  45. 45Special administration order as an alternative order
  46. 46Disqualification of directors
  47. 47Further provision on special administration: schedules
  48. 48FSMA 2000, Pt 24: application to payment and electronic money institution insolvency except special administration
  49. 49Correction of defect in instrument relating to the UK’s withdrawal from the EU and bank recovery and resolution
  50. Signature
  51. Schedule 1: How special administration applies to English/Welsh LLPs
  52. 1Paragraph 1
  53. 2Paragraph 2
  54. 3Paragraph 3
  55. 4Paragraph 4
  56. 5Paragraph 5
  57. Schedule 2: How special administration applies to English/Welsh partnerships
  58. 1Paragraph 1
  59. 2Paragraph 2
  60. 3Paragraph 3
  61. 4Paragraph 4
  62. 5Paragraph 5
  63. 6Paragraph 6
  64. 7Paragraph 7
  65. 8Paragraph 8
  66. 9Paragraph 9
  67. Schedule 3: Further provision about how other legislation applies to companies in special administration
  68. 1Introduction
  69. 2General modifications
  70. Primary Legislation
  71. Secondary Legislation
  72. 4Pensions Act 2004
  73. 5CA 2006
  74. 6Land Registration Rules 2003
  75. Schedule 4: Consequential amendments
  76. Part 1: Primary legislation
  77. 1The Companies Act 1985
  78. 2The Finance Act 1986
  79. 3The Third Parties (Rights against Insurers) Act 2010
  80. Part 2: Secondary legislation
  81. 4The EMR 2011
  82. 5The IBSAR 2011
  83. 6The PSR 2017
  84. Explanatory note