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The Investment Bank Special Administration Regulations 2011

S.I. 2011/245 · Made 7 February 2011 · Extends to United Kingdom

Up to date with all changes known to legislation.gov.uk, revised to 6 April 2025.

Financial Services And Markets

Made 7th February 2011

Coming into force in accordance with regulation 1

The Treasury make the following Regulations in exercise of the powers conferred by sections 233, 234 and 259(1) of the Banking Act 2009 M1 (the power in section 233 having not yet lapsed under section 235(4)).

Before laying these Regulations before Parliament in draft, the Treasury consulted in accordance with section 235(3) of that Act.

A draft of these Regulations has been laid before and approved by resolution of each House of Parliament in accordance with section 235(2) of that Act.C1C2

Annotations to the whole text

Marginal citations

M1

2009 c. 1.

Modifications

C1

Regulations modified (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 33; S.I. 2014/3160, art. 2(1)(b)

C2

Regulations modified (temp.) (31.12.2020) by The Financial Services (Miscellaneous) (Amendment) (EU Exit) Regulations 2019 (S.I. 2019/710), regs. 1(4), 39 (as amended by S.I. 2020/1301, regs. 1, 3, Sch. para. 43(l)); 2020 c. 1, Sch. 5 para. 1(1)

Contents

  1. 1Citation and commencement
  2. 2Interpretation
  3. 3Overview
  4. 4Special administration order
  5. 5Application
  6. 6Grounds for applying
  7. 7Powers of the court
  8. 8Notice to appropriate regulator of preliminary steps to other insolvency proceedings
  9. 9Application where investment bank is a deposit-taking bank
  10. 10Special administration objectives
  11. 10AObjective 1—duty of administrator to work with the FSCS
  12. 10BObjective 1—transfer of client assets
  13. 10CRestrictions on partial property transfers—general provision
  14. 10DRestrictions on partial property transfers—set-off and netting arrangements
  15. 10ERestrictions on partial property transfers—security interests
  16. 10FRestrictions on partial property transfers—capital market arrangements
  17. 10GRestrictions on partial property transfers—financial markets
  18. 10HObjective 1—post-administration reconciliation of accounts and records relating to client money
  19. 10IObjective 1—removal of right to interest on unsecured claims for the return of client money
  20. 11Objective 1 – distribution of client assets
  21. 12Objective 1 - shortfall in client assets held in omnibus account
  22. 12AObjective 1—distribution of client money
  23. 12BObjectives 1 and 3—client assets (other than client money) which the administrator is unable to return to clients
  24. 12CObjectives 1 and 3—client money which the administrator is unable to return to clients
  25. 12DPowers of the court on application to set a hard bar date
  26. 12EBar date notices—procedural requirements
  27. 12FCosts of making a claim
  28. 13Objective 2 – engaging with market infrastructure bodies and the Authorities
  29. 14Continuity of supply
  30. 15General powers, duties and effect
  31. 16Appropriate regulator direction
  32. 17Administrator's proposals in the event of Appropriate regulator direction
  33. 18Revision of proposals in the event of Appropriate regulator direction
  34. 19Appropriate regulator direction withdrawn
  35. 19AResponsibility for certain costs of the administration
  36. 20Successful rescue
  37. 21Dissolution or voluntary arrangement
  38. 22Special administration order as an alternative order
  39. 23Disqualification of directors
  40. 24Limited liability partnerships
  41. 25Partnerships
  42. 26Northern Irish equivalent enactments
  43. 27Modifications and consequential amendments to legislation
  44. Signature
  45. Schedule 1: Special administration (bank insolvency)
  46. 1Paragraph 1
  47. 2Paragraph 2
  48. 3Paragraph 3
  49. 4Paragraph 4
  50. 5Paragraph 5
  51. 6Paragraph 6
  52. 7Paragraph 7
  53. 8Paragraph 8
  54. 9Paragraph 9
  55. Schedule 2: Special administration (bank administration)
  56. 1General provisions
  57. 2Paragraph 2
  58. 3Paragraph 3
  59. 4Paragraph 4
  60. 5Paragraph 5
  61. 6Application of Part 3 of the Act and the Insolvency Act
  62. 7Statement of proposals
  63. 8Paragraph 8
  64. 9Paragraph 9
  65. 10Meeting of creditors and clients to approve statement
  66. 11Revision to the statement of proposals (Objective A not yet achieved)
  67. 12Revision to the statement of proposals (Objective A achieved and no regulation 16 direction)
  68. 13Revision to the statement of proposals (Objective A achieved and regulation 16 direction has not been withdrawn)
  69. 14Powers of the court
  70. 15Ending of special administration (bank administration) (rescue)
  71. 16Ending of special administration (bank administration) (dissolution or voluntary arrangement
  72. 17Interpretation
  73. Schedule 3: Application of these Regulations to limited liability partnerships
  74. 1Paragraph 1
  75. 2Paragraph 2
  76. 3Paragraph 3
  77. 4Paragraph 4
  78. 5Application to Scotland
  79. 6Subordinate legislation
  80. Schedule 4: Application of these Regulations to partnerships
  81. 1Paragraph 1
  82. 2Paragraph 2
  83. 3Paragraph 3
  84. 4Paragraph 4
  85. 5Paragraph 5
  86. Schedule 5Table of enactments referred to in these Regulations together with the equivalent enactment having effect in relation to Northern Ireland
  87. Schedule 6: Modifications and consequential amendments
  88. Part 1
  89. 1Paragraph 1
  90. Primary Legislation
  91. Secondary Legislation
  92. Part 2: Specific modifications
  93. 2Paragraph 2
  94. 3Financial Services and Markets Act 2000
  95. 4Pensions Act 2004
  96. 5Companies Act 2006
  97. 6Land Registration Rules 2003
  98. 7Credit Institutions (Reorganisation and Winding Up) Regulations 2004
  99. Part 3: Consequential amendments
  100. 8Companies Act 1985
  101. 9Finance Act 1986
  102. Explanatory note