Explanatory note

Northern Ireland

(This note is not part of the Rules)

These Rules set out the procedure for the payment institution special administration process or electronic money institution special administration process (as the case may be) in Northern Ireland under the Payment and Electronic Money Institution Insolvency Regulations 2021 (“the Regulations”) as amended by the Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023.

The main features of the special administration process in each case are that:

(a)

an administrator is appointed, and the institution enters special administration, by court order;

(b)

special administration objectives and procedures apply;

(c)

specific provision is made about how those procedures apply to small institutions;

(d)

the administrator is to pursue the special administration objectives in accordance with the statement of proposals.

In other respects the procedure is the same as for administration under Schedule B1 to the Insolvency (Northern Ireland) Order, subject to modifications and the inclusion of certain liquidation provisions of that Order.

The Rules make provision in relation to the procedure as follows:

Part 2 sets out the procedure for applying for a special administration order.

Part 3 sets out the process of the special administration.

Part 4 provides for the expenses of the special administration.

Part 5 sets out the rules concerning relevant funds claims.

Part 6 provides for the pursuit of Objective 1.

Part 7 provides for distributions to creditors.

Part 8 sets out rules concerning the administrator.

Part 9 provides for the end of the special administration.

Part 10 sets out court procedure and practice.

Part 11 provides for the application of Article 180 of the Insolvency (N.I.) Order 1989 (prohibited names).

Part 12 contains provisions of general effect.

Part 13 provides for general interpretation and application.

The Rules apply to institutions incorporated as companies as well as to institutions that are:

(a)

limited liability partnerships by virtue of paragraph 5 of Schedule 1 of the Regulations which applies the Rules with such modifications as the context requires for giving effect to the Regulations; or

(b)

partnerships by virtue of paragraph 9 of Schedule 2 to the Regulations which applies Article 18 of and Schedule 10 to the Insolvent Partnerships Order (N.I.) 1995 (S.R. 1995/225).