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The Payment and Electronic Money Institution Insolvency (England and Wales) Rules 2021

S.I. 2021/1178 · Made 21 October 2021 · Extends to England and Wales

Up to date with all changes known to legislation.gov.uk, revised to 10 August 2022.

Financial Services And Markets

Insolvency

Made 21st October 2021

Laid before Parliament 22nd October 2021

Coming into force 12th November 2021

The Lord Chancellor makes the following Rules, in exercise of the powers conferred by section 411(1A)(a), (2), (2C) and (3) of the Insolvency Act 1986f1, as applied by the Payment and Electronic Money Institution Insolvency Regulations 2021f2.

The Treasury concur in the making of these 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 these 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.

f2

S.I. 2021/716.

Contents

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