# The Payment and Electronic Money Institution Insolvency (Scotland) Rules 2022, Note: Explanatory note

Extent: S

(This note is not part of the Rules)
These Rules set out the procedure in Scotland for the payment institution special administration process or electronic money institution special administration process (as the case may be) under the Payment and Electronic Money Institution Insolvency Regulations 2021, S.I. 2021/716 (“the Regulations”).
The main features of the special administration process in each case under the Regulations 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,
(e) in other respects the procedure is the same as for administration under Schedule B1 to the Insolvency Act 1986 (c. 45), subject to modifications and the inclusion of certain liquidation provisions of that Act.
Part 2 of the Rules sets out the procedure for applying for a special administration order.
Part 3 of the Rules sets out the process of the special administration.
Part 4 of the Rules provides for the expenses of the special administration.
Part 5 of the Rules sets out the rules concerning relevant funds claims.
Part 6 of the Rules provides for the pursuit of Objective 1 from the Regulations (relating to the return of relevant funds).
Part 7 of the Rules provides for claims by and distributions to creditors.
Part 8 of the Rules sets out rules concerning the administrator and there are further rules concerning the administrator in Chapter 6 of Part 12.
Part 9 of the Rules provides for the end of the special administration.
Part 10 of the Rules sets out special rules in respect of court procedure and practice.
Part 11 of the Rules provides for the application of section 216 of the Insolvency Act 1986 (prohibited names).
Part 12 of the Rules contains provisions of general effect.
Part 13 of the Rules provides for general interpretation and application.
The Rules apply to institutions incorporated as companies, but not to the types of institution that are excluded from the application of the Regulations.
A de minimis impact assessment of the effect these Rules will have on business and the voluntary sector is available from HM Treasury, 1 Horseguards Road, London SW1A 2HQ or on www.gov.uk and is published alongside these Rules on www.legislation.gov.uk.

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Source: https://www.legislation.gov.uk/uksi/2022/1239/note (the official version)
Page: https://openlegislation.uk/payment-and-electronic-money-institution-insolvency-scotland-rules-2022/note
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.