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The Investment Bank Special Administration (England and Wales) Rules 2011

S.I. 2011/1301 · Made 15 May 2011 · Extends to England and Wales

Up to date with all changes known to legislation.gov.uk, revised to 26 February 2018.

Financial Services And Markets

Insolvency

Made 15th May 2011

Laid before Parliament 23rd May 2011

Coming into force 30th June 2011

The Lord Chancellor makes the following Rules in the exercise of powers under sections 411(1A)(a), (2), (2C) and (3) of the Insolvency Act 1986f1, as applied by the Investment Bank Special Administration Regulations 2011f2.

The Treasury concur in the making of the Rules.

The Chancellor of the High Court (by the authority of the Lord Chief Justice under section 411(7) of the Insolvency Act 1986) concurs in the making of the Rules in so far as they affect court procedure.

Before making these Rules, the Lord Chancellor consulted the committee existing for the purposes of section 413 of the Insolvency Act 1986.

Annotations to the whole text

Footnotes

f1

1986 c. 45: section 411 is applied with modifications by regulation 15(6) of the Investment Bank Special Administration Regulations 2011. Subsections (1A) and (2C) were inserted by and subsections (2) and (3) were amended by section 125 of the Banking Act 2009 (c.1).

f2

S.I. 2011/ 245.

Contents

  1. Part 1: Introductory Provisions
  2. 1Citation
  3. 2Commencement
  4. 3Extent
  5. 4Interpretation
  6. 5Application of rules
  7. Part 2: Application for Order
  8. Chapter 1: Application for special administration order
  9. 6Content of application
  10. 7Statement of proposed administrator
  11. 8Witness statement in support of application
  12. 9Filing of application
  13. 10Service of application
  14. 11Proof of service
  15. 12Further notification
  16. 13The hearing
  17. 14The special administration order
  18. 15Costs
  19. 16Notice of special administration order
  20. Chapter 2: Application for a special administration (bank insolvency) order
  21. 17Filing of application
  22. 18Service of application
  23. 19Proof of service
  24. 20Other persons to receive copy of application
  25. 21Verification of application
  26. 22Persons entitled to copy of application
  27. 23Certificate of compliance
  28. 24Leave for the applicant to withdraw
  29. 25Witness statement in opposition
  30. 26Making, transmission and advertisement of order
  31. 27Special administration (bank insolvency) order
  32. 28Authentication of administrator’s appointment
  33. 29Duties of Objective A committee
  34. 30Appointment of person under section 135
  35. 31Notice of appointment
  36. 32Order of appointment
  37. 33Security
  38. 34Failure to give or keep up security
  39. 35Remuneration
  40. 36Termination of appointment
  41. Chapter 3: Application for a special administration (bank administration) order
  42. 37Content of application
  43. 38Statement of proposed administrator
  44. 39Bank of England witness statement
  45. 40Filing
  46. 41Service
  47. 42Other notification
  48. 43Venue
  49. 44Hearing
  50. 45Special administration (bank administration) order
  51. 46Costs
  52. 47Notice of order
  53. 48Remuneration of the administrator
  54. 49Appointment of person under section 135
  55. 50Order of appointment
  56. Part 3: Process of Special Administration
  57. Chapter 1: Notice of appointment and statement of affairs
  58. 51Notification and advertisement of administrator’s appointment
  59. 52Notice requiring statement of affairs
  60. 53Details of the client assets held by the investment bank
  61. 54Verification and filing
  62. 55Limited disclosure
  63. 56Release from duty to submit statement of affairs
  64. 57Expenses of statement of affairs
  65. 58Submission of accounts
  66. Chapter 2: Statement of proposals
  67. 59Administrator’s proposals
  68. 60Limited disclosure of the statement of proposals
  69. Chapter 3: Initial meeting to consider proposals
  70. 61Initial meeting
  71. 62Notice to officers
  72. 63Business of the initial meeting
  73. 64Adjournment of meeting to approve the statement of proposals
  74. 65Revision of the statement of proposals
  75. 66Meeting to approve the revised statement of proposals
  76. 67Notice to creditors and clients
  77. Chapter 4: Meetings generally
  78. 68Meetings generally
  79. 69Venue
  80. 70Notice of meeting by individual notice: when and where sent
  81. 71Notice of meeting by individual notice: content and accompanying documents
  82. 72Notice of meeting by advertisement only
  83. 73Content of notice for meetings
  84. 74Gazetting and advertisement of meetings
  85. 75Non-receipt of notice of meeting
  86. 76Requisition of meetings
  87. 77Expenses of requisitioned meetings
  88. 78Quorum at meetings
  89. 79Chair at meetings
  90. 80Adjournment by chair
  91. 81Adjournment in absence of chair
  92. 82Claims, proofs and proxies in adjournment
  93. 83Suspension
  94. 84Venue and conduct of company meetings
  95. Chapter 5: Entitlement to vote at meetings
  96. 85Entitlement to vote (creditors)
  97. 86FSCS and voting rights
  98. 87Calculation of voting rights (creditors)
  99. 88Calculation of voting rights: special cases (creditors)
  100. 89Procedure for admitting creditors’ claims for voting
  101. 90Entitlement to vote (clients)
  102. 91Calculation of voting rights (clients)
  103. 92Procedure for admitting clients’ claims for voting
  104. 93Voting at meetings of creditors and clients
  105. 94Requisite majorities
  106. 95Requisite majorities at contributories’ meetings
  107. 96Appeals against decisions under this Chapter
  108. Chapter 6: Correspondence and remote attendance
  109. 97Correspondence instead of meetings
  110. 98Remote attendance at meetings conducted in accordance with section 246A
  111. 99Action where person excluded
  112. 100Indication to excluded person
  113. 101Complaint
  114. Chapter 7: Records, returns and reports
  115. 102Minutes
  116. 103Returns or reports of meetings
  117. Chapter 8: The creditors’ committee
  118. 104Constitution of committee
  119. 105Formalities of establishment
  120. 106Functions and meetings of the committee
  121. 107The chair at meetings
  122. 108Quorum
  123. 109Committee members’ representatives
  124. 110Resignation
  125. 111Termination of membership
  126. 112Removal
  127. 113Vacancies
  128. 114Procedure at meetings
  129. 115Remote attendance at meetings of creditors’ committee
  130. 116Procedure for requests that a place for a meeting should be specified
  131. 117Resolutions of creditors’ committees by post
  132. 118Information from administrator
  133. 119Expenses of members
  134. 120Members dealing with the investment bank
  135. 121Formal defects
  136. Chapter 9: Progress reports
  137. 122Content of progress report
  138. 123Sending progress report
  139. Chapter 10: Proxies and corporate representation
  140. 124Definition of proxy
  141. 125Issue and use of forms
  142. 126Use of proxies at meetings
  143. 127Retention of proxies
  144. 128Right of inspection
  145. 129Proxy holder with financial interest
  146. 130Company representation
  147. Chapter 11: Disposal of charged property
  148. 131Application to dispose of charged property
  149. 132Application in a special administration (bank administration)
  150. Part 4: Expenses of the special administration
  151. 133Expenses of voluntary arrangement
  152. 134Expenses to be paid out of the investment bank’s assets
  153. 135Expenses to be paid out of the client assets
  154. 136Pre-administration costs
  155. 137Allocation of expenses to be paid from client assets
  156. Part 5: Objective 1
  157. Chapter 1: Setting a bar date
  158. 138Notice of the bar date
  159. 139Content of claim for client assets
  160. 140Content of claim in respect of security interest
  161. 141Costs of making a claim
  162. 142New administrator appointed
  163. Chapter 2: Further notification
  164. 143Notifying potential claimants after bar date has passed
  165. Chapter 3: Distribution plan
  166. 144Distribution plan
  167. 145Approval by the creditors’ committee
  168. 146Approval by the court
  169. 147Treatment of late claimants
  170. Part 6: Distributions to creditors
  171. Chapter 1: Application
  172. 148Distribution to creditors
  173. 149Debts of investment bank to rank equally
  174. 150Supplementary provisions as to dividend
  175. 151Division of unsold assets
  176. Chapter 2: Proofs of debts
  177. 152Proving a debt
  178. 153Costs of proving
  179. 154Administrator to allow inspection of proofs
  180. 155New administrator appointed
  181. 156Admission and rejection of proofs for dividend
  182. 157Appeal against decision on proof
  183. 158Withdrawal or variation of proof
  184. 159Expunging of proof by the court
  185. Chapter 3: Quantification of claims
  186. 160Estimate of quantum
  187. 161Negotiable instruments
  188. 162Secured creditors
  189. 163Discounts
  190. 164Mutual credit and set-off
  191. 165Application of rule 164 in a special administration (bank administration) and special administration (bank insolvency)
  192. 166Debt in a foreign currency
  193. 167Payments of a periodical nature
  194. 168Interest
  195. 169Debt payable at a future time
  196. 170Value of security
  197. 171Surrender for non-disclosure
  198. 172Redemption by administrator
  199. 173Test of security’s value
  200. 174Realisation of security by creditor
  201. 175Notice of proposed distribution
  202. 176Admission or rejection of proofs
  203. 177Postponement or cancellation of dividend
  204. 178Declaration of a dividend
  205. 179Notice of declaration of a dividend
  206. 180Payments of dividend and related matters
  207. 181Notice of no dividend or no further dividend
  208. 182Proof altered after payment of dividend
  209. 183Secured creditors
  210. 184Disqualification from dividend
  211. 185Assignment of right to dividend
  212. 186Debt payable at a future time
  213. Part 7: The Administrator
  214. Chapter 1: Powers of the administrator
  215. 187General powers
  216. 188Powers of disclaimer
  217. 189Communication of disclaimer to persons interested
  218. 190Additional notices
  219. 191Records
  220. 192Application by interested party
  221. 193Interest in property to be declared on request
  222. 194Disclaimer presumed valid and effective
  223. 195Application for the exercise of court’s powers under section 181
  224. Chapter 2: Fixing of remuneration
  225. 196Fixing of remuneration
  226. 197Remuneration (special administration (bank insolvency))
  227. 198Remuneration (special administration (bank administration)
  228. 199Recourse to meeting of creditors and clients
  229. 200Recourse to the court
  230. 201Creditors’ and clients’ request for further information
  231. 202Claim that remuneration is excessive
  232. 203Review of remuneration
  233. 204Remuneration of new administrator
  234. 205Apportionment of set fee remuneration
  235. Chapter 3: Replacing the administrator
  236. 206Grounds for resignation
  237. 207Notice of intention to resign
  238. 208Notice of resignation
  239. 209Application to court to remove administrator from office
  240. 210Notice of vacation of office when administrator ceases to be qualified
  241. 211Administrator deceased
  242. 212Application to replace (special administration)
  243. 213Application to replace (special administration (bank insolvency))
  244. 214Application to replace (special administration (bank administration))
  245. 215Notification and advertisement of appointment of replacement administrator
  246. 216Notification and advertisement of appointment of joint administrator
  247. 217Additional joint administrator (special administration (bank administration))
  248. 218Notification of new administrator
  249. 219Administrator’s duties on vacating office
  250. Part 8: End of special administration
  251. 220Final progress reports
  252. 221Application to court by administrator
  253. 222Application to court by creditor
  254. 223Notification by administrator of court order
  255. 224Moving from administration to dissolution
  256. Part 9: Court procedure and practice
  257. Chapter 1: Application of the CPR
  258. 225Principal court rules and practice to apply
  259. Chapter 2: The Court
  260. 226Shorthand writers – nomination, appointment, remuneration and costs
  261. 227Court file
  262. 228Office copies of documents
  263. 229Payments into court
  264. Chapter 3: Obtaining information and evidence
  265. 230Further information and disclosure
  266. 231Witness statements – general
  267. 232Filing and service of witness statements
  268. 233Evidence provided by the administrator
  269. Chapter 4: Service of court documents
  270. 234Application of Chapter
  271. 235Service of court documents within the jurisdiction
  272. 236Service of court documents outside jurisdiction
  273. 237Service of orders staying proceedings
  274. 238Service on joint office-holders
  275. Chapter 5: Applications to court - general
  276. 239Application of Chapter
  277. 240Form and contents of application
  278. 241Filing and service of application
  279. 242Directions
  280. 243Hearings without notice
  281. 244Hearing of application
  282. 245Adjournment of the hearing of an application
  283. Chapter 6: Applications to the court under section 176A
  284. 246Application of Chapter
  285. 247Applications under section 176A(5) to disapply section 176A
  286. 248Notice of application under section 176A(5)
  287. 249Notice of an order under section 176A(5)
  288. Chapter 7: Applications for an order under section 236
  289. 250Application of following rules
  290. 251Form and contents of application
  291. 252Order for examination etc.
  292. 253Procedure for examination
  293. 254Record of examination
  294. 255Costs of proceedings under section 236
  295. Chapter 8: People who lack capacity to manage their affairs etc.
  296. 256Application of Chapter 8
  297. 257Appointment of another person to act
  298. 258Witness statement in support of application
  299. 259Service of notices following appointment
  300. Chapter 9: Formal defects
  301. 260Formal defects
  302. Chapter 10: Costs
  303. 261Application of Chapter 10
  304. 262Requirement to assess costs by the detailed procedure
  305. 263Procedure where detailed assessment is required
  306. 264Costs of officers charged with execution of writs or other process
  307. 265Costs paid otherwise than out of the investment bank’s estate
  308. 266Award of costs against the administrator
  309. 267Applications for costs
  310. 268Costs and expenses of witnesses
  311. 269Final costs certificate
  312. Chapter 11: Enforcement procedures
  313. 270Enforcement of court orders
  314. 271Orders enforcing compliance with the Rules
  315. 272Warrants (general provisions)
  316. 273Warrants under section 236
  317. Chapter 12: Appeals
  318. 274Application of Chapter 12
  319. 275Appeals and reviews of court orders
  320. 276Procedure on appeal
  321. 277Appeal against decision of the Secretary of State
  322. Part 10: Prohibited names
  323. 278Preliminary
  324. 279Application for permission under section 216(3)
  325. 280First excepted case
  326. 281Second excepted case
  327. 282Third excepted case
  328. Part 11: Provisions of general effect
  329. Chapter 1: Miscellaneous and general
  330. 283Costs, expenses etc
  331. 284Provable debts
  332. 285False claim of status as creditor, etc
  333. 286Punishment of offences
  334. Chapter 2: The giving of notice and the supply of documents
  335. 287Application
  336. 288Personal delivery
  337. 289Postal delivery of documents
  338. 290Notice etc to solicitors
  339. Chapter 3: The giving of notice and the supply of documents to or by the administrator
  340. 291Application
  341. 292The form
  342. 293Proof of sending
  343. 294Authentication
  344. 295Electronic delivery - general
  345. 296Electronic delivery by administrator
  346. 297Use of websites by administrator
  347. 298Special provision on account of expense as to website use
  348. 299Electronic delivery of special administration documents to court
  349. 300Notice etc to joint administrators
  350. 301Execution overtaken by judgment debtor’s insolvency
  351. 302Notice to enforcement officers
  352. 303Electronic submission of information
  353. 304Electronic submission of information where rule 303 does not apply
  354. 305Contents of notices to be gazetted
  355. 306Gazette notices relating to companies
  356. 307Omission of unobtainable information
  357. 308The Gazette – general
  358. 309Notices otherwise advertised under the Regulations or Rules
  359. 310Non-Gazette notices
  360. 311Non-Gazette notices – other provisions
  361. Chapter 4: Notifications to the registrar of companies
  362. 312Application of Chapter 4
  363. 313Information to be contained in all notifications to the registrar
  364. 314Notification relating to the administrator
  365. 315Notifications relating to documents
  366. 316Notifications relating to court orders
  367. 317Notifications relating to other events
  368. 318Notifications of more than one nature
  369. 319Notifications made to other persons at the same time
  370. Chapter 5: Further provisions concerning documents
  371. 320Confidentiality of documents – grounds for refusing inspection
  372. 321Right to copy documents
  373. 322Charges for copy documents
  374. 323Right to have list of creditors
  375. Chapter 6: Time limits and security
  376. 324Time limits
  377. 325Administrator’s security
  378. Chapter 7: Transfer of proceedings
  379. 326Proceedings commenced in the wrong court
  380. 327Proceedings other than special administration commenced
  381. Part 12: General interpretation and application
  382. 328Introduction
  383. 329“The court”; “the registrar”
  384. 330Venue
  385. 331Insolvent estate
  386. 332The appropriate fee
  387. 333“Debt”; “liability”
  388. 334Application of the 1986 Act and the Company Directors Disqualification Act
  389. Signature
  390. Schedule Punishment of offences
  391. Explanatory note