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The Payment and Electronic Money Institution Insolvency Regulations 2021

S.I. 2021/716 · Made 17 June 2021 · 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 17th June 2021

Coming into force 8th July 2021

The Treasury make these Regulations in exercise of the powers conferred by—

(a)

sections 233 and 234 of the Banking Act 2009f1 as applied and modified by regulation 24A of, and paragraphs 2 and 3 of Schedule 2ZA to, the Electronic Money Regulations 2011f2 (“EMR 2011”) and regulation 23A of, and paragraphs 2 and 3 of Schedule 3A to, the Payment Services Regulations 2017f3 (“PSR 2017”), and section 259(1) of that Act, and

(b)

in respect of regulation 49 (and regulations 1 to 4 so far as they relate to regulation 49), section 8(1) of, and paragraph 21 of Schedule 7 to, the European Union (Withdrawal) Act 2018f4.

The Treasury have consulted in accordance with section 235(3) of the Banking Act 2009 as applied and modified by regulation 24A of, and paragraph 4 of Schedule 2ZA to, the EMR 2011 and regulation 23A of, and paragraph 4 of Schedule 3A to, the PSR 2017.

A draft of these Regulations has been laid before and approved by a resolution of each House of Parliament in accordance with section 235(2) of the Banking Act 2009 as applied and modified by regulation 24A of, and paragraph 4 of Schedule 2ZA to, the EMR 2011 and regulation 23A of, and paragraph 4 of Schedule 3A to, the PSR 2017, and paragraph 1(3) of Schedule 7 to the European Union (Withdrawal) Act 2018.

Annotations to the whole text

Footnotes

f1

2009 c. 1.

f2

S.I. 2011/99. Regulation 24A and Schedule 2ZA were inserted by S.I. 2020/1275.

f3

S.I. 2017/752. Regulation 23A and Schedule 3A were inserted by S.I. 2020/1275.

f4

2018 c. 16.

Contents

  1. 1Citation
  2. 2Commencement
  3. 3Extent
  4. 4Overview
  5. 5Application: Scottish ... partnerships
  6. 6Definitions
  7. 7Special administration order
  8. 8Application for order
  9. 9Grounds for applying
  10. 10Powers of the court
  11. 11Notice to FCA: other proceedings
  12. 12Special administration objectives
  13. 13Objective 1: initial reconciliation
  14. 14Objective 1: constitution of asset pool
  15. 15Objective 1: monitoring and maintaining asset pool
  16. 16Objective 1: post-administration receipts
  17. 17Objective 1: determining claim entitlements
  18. 18Objective 1: principles of distribution
  19. 19Objective 1: shortfalls in asset pool
  20. 20Objective 1: bar date
  21. 21Objective 1: hard bar date
  22. 22Objective 1: hard bar date: powers of the court
  23. 23Objective 1: interest on relevant funds claims
  24. 24Objectives 1 and 3: transfer arrangements: overview
  25. 25Objectives 1 and 3: TAs: Conditions 1 to 3
  26. 26Objectives 1 and 3: TAs: effect
  27. 27Objectives 1 and 3: TAs: novation of contracts
  28. 28Objectives 1 and 3: TAs: disclosure of information
  29. 29Objectives 1 and 3: PPTAs: Condition 4 and restrictions
  30. 30Objectives 1 and 3: PPTAs: reverse transfers
  31. 31Objectives 1 and 3: PPTAs: set-off and netting
  32. 32Objectives 1 and 3: PPTAs: security interests
  33. 33Objectives 1 and 3: PPTAs capital markets arrangements
  34. 34Objectives 1 and 3: PPTAs: financial markets
  35. 35Objective 2: engagement: payment systems, market disruption and consumer protection
  36. 36Continuity of supply
  37. 37Application of the IA 1986 in England, Wales and Scotland
  38. 37AApplication of the I(NI)O 1989 and related insolvency legislation in Northern Ireland
  39. 38FCA direction
  40. 39Administrator’s proposals in the event of FCA direction
  41. 40Revision of proposals in the event of FCA direction
  42. 41FCA direction withdrawn
  43. 42Safeguarding failures: costs of the administration
  44. 43Successful rescue
  45. 44Dissolution or voluntary arrangement
  46. 45Special administration order as an alternative order
  47. 46Disqualification of directors : Great Britain
  48. 46ADisqualification of directors: Northern Ireland
  49. 47Further provision on special administration: schedules
  50. 48FSMA 2000, Pt 24: application to payment and electronic money institution insolvency except special administration
  51. 49Correction of defect in instrument relating to the UK’s withdrawal from the EU and bank recovery and resolution
  52. Signature
  53. Schedule 1: How special administration applies to English/Welsh /Scottish LLPs
  54. 1Paragraph 1
  55. 2Paragraph 2
  56. 3Paragraph 3
  57. 4Paragraph 4
  58. 5Paragraph 5
  59. Schedule 1A: How special administration applies to Northern Ireland LLPs
  60. 1Paragraph 1
  61. 2Paragraph 2
  62. 3Paragraph 3
  63. 4Paragraph 4
  64. 5Paragraph 5
  65. Schedule 2: How special administration applies to English/Welsh partnerships
  66. 1Paragraph 1
  67. 2Paragraph 2
  68. 3Paragraph 3
  69. 4Paragraph 4
  70. 5Paragraph 5
  71. 6Paragraph 6
  72. 7Paragraph 7
  73. 8Paragraph 8
  74. 9Paragraph 9
  75. Schedule 2A: How special administration applies to Northern Ireland partnerships
  76. 1Paragraph 1
  77. 2Paragraph 2
  78. 3Paragraph 3
  79. 4Paragraph 4
  80. 5Paragraph 5
  81. 6Paragraph 6
  82. 7Paragraph 7
  83. 8Paragraph 8
  84. 9Paragraph 9
  85. Schedule 3: Further provision about how other legislation applies to companies in special administration
  86. 1Introduction
  87. 2General modifications
  88. 3Paragraph 3
  89. 4Pensions Act 2004 and the Pensions (Northern Ireland) Order 2005
  90. 5CA 2006
  91. 6Land Registration Rules
  92. Schedule 4: Consequential amendments
  93. Part 1: Primary legislation
  94. 1The Companies Act 1985
  95. 2The Finance Act 1986
  96. 3The Third Parties (Rights against Insurers) Act 2010
  97. Part 2: Secondary legislation
  98. 4The EMR 2011
  99. 5The IBSAR 2011
  100. 6The PSR 2017
  101. Explanatory note