Financial Services And Markets Citation 1 These Regulations may be cited as the Payment and Electronic Money Institution Insolvency Regulations 2021. Commencement 2 These Regulations come into force on the twenty-first day after the day on which they are made. Extent 3 1 These Regulations extend to England and Wales , Scotland and Northern Ireland , subject as follows. 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 A modification made by Schedule 3 has the same extent as the provision modified. 4 An amendment made by Schedule 4 has the same extent as the provision amended. Overview 4 1 Regulations 7 to 48 and Schedules 1 to 4 make provision about the insolvency of payment institutions and electronic money institutions (“institutions”). 2 Regulations 7 to 47 and Schedules 1 to 4 set out a special alternative procedure for the insolvency of institutions. 3 The procedure is to be known as— a payment institution special administration, where the institution is a payment institution, or b electronic money institution special administration, where the institution is an electronic money institution. 4 Regulation 48 applies with modifications various provisions of Part 24 of the Financial Services and Markets Act 2000 (“FSMA 2000”) to institutions except in respect of special administration. 5 Regulation 49 corrects a defect in an instrument relating to the United Kingdom’s withdrawal from the European Union and bank recovery and resolution. Application: Scottish ... partnerships 5 Regulations 7 to 47 do not apply to the insolvency of ... partnerships formed under the law of Scotland. Definitions 6 In these Regulations, the words and expressions in the first column of the Table have the meaning indicated in the second column— Word or expression Meaning BA 2009 Banking Act 2009 CA 2006 Companies Act 2006 CDDA 1986 Company Directors Disqualification Act 1986 CDD(NI)O 2002 Company Directors Disqualification (Northern Ireland) Order 2002 FSMA 2000 has the meaning given in regulation 4(4) IA 1986 Insolvency Act 1986 I(NI)O 1989 Insolvency (Northern Ireland) Order 1989 SBEEA 2015 Small Business, Enterprise and Employment Act 2015 EMR 2011 Electronic Money Regulations 2011 IBSAR 2011 Investment Bank Special Administration Regulations 2011 PSR 2017 Payment Services Regulations 2017 administrator (except in the expression Schedule B1 administrator) person appointed under regulation 7 agency or distribution services (in the case of electronic money institutions) services provided by an agent or distributor within the meaning of regulation 2(1) of the EMR 2011 agency services (in the case of a payment institutions) services provided by an agent within the meaning of regulation 2(1) of the PSR 2017 asset pool (in the case of electronic money institutions) (a) in the case of funds received for the execution of payment transactions which are not related to the issuance of electronic money, see regulation 23(18) of the PSR 2017, or (b) in any other case, see regulation 24(4) of the EMR 2011 asset pool (in the case of payment institutions) see regulation 23(18) of the PSR 2017 authorised payment institution see regulation 2(1) of the PSR 2017 Authorities the Bank of England, the Treasury and the FCA contributory (a) in England and Wales and Scotland, has the same meaning as in the IA 1986 (see section 79 of that Act) as applied and modified by these Regulations , and (b) in Northern Ireland, has the same meaning as in the I(NI)O 1989 (see Article 13 of that Order) as applied and modified by these Regulations court (a) in England and Wales and in Northern Ireland , the High Court, and (b) in Scotland, the Court of Session electronic money see regulation 2(1) of the EMR 2011 electronic money institution see regulation 2(1) of the EMR 2011 enactment includes— (a) an enactment contained in, or in an instrument made under, an Act of the Scottish Parliament, (b) an enactment contained in, or in an instrument made under, a Measure or Act of Senedd Cymru, (ba) an enactment contained in, or in an instrument made under, Northern Ireland legislation, and (c) any assimilated direct legislation fair has the same meaning as in Part 2 of the BA 2009 (see section 93(8) of that Act) FCA Financial Conduct Authority foreign property has the same meaning as in the BA 2009 (see section 39(2) of that Act) holder electronic money holder special administration insolvency rules (a) in relation to special administrations in England and Wales, or Scotland, means rules made under section 411 of the IA 1986, (b) in relation to special administrations in Northern Ireland, means rules made under Article 359 of the I(NI)O 1989, in each case as applied and modified by these Regulations to give effect to these Regulations. institution has the meaning given in regulation 4(1) institution’s own bank accounts includes any account, other than a relevant funds account, opened by the administrator for the purposes of the special administration Objective 1 has the meaning given in regulation in 12(2) Objective 2 has the meaning given in regulation in 12(3) Objective 3 has the meaning given in regulation in 12(4) payment institution authorised payment institution or small payment institution payment services see regulation 2(1) of the PSR 2017 payment system has the same meaning as in the BA 2009 (see section 182 of that Act ) payment system operator has the same meaning as in the BA 2009 (see section 183 of that Act ) payment transaction see regulation 2(1) of the PSR 2017 PPTA has the meaning given in regulation 24(3) PS or EMI contract contract for payment services or electronic money issuance relevant funds (in the case of electronic money institutions) (a) in the case of funds received for the execution of payment transactions which are not related to the issuance of electronic money, see regulation 23(1) and (2) of the PSR 2017 (b) in any other case, see regulation 20(1) of the EMR 2011 relevant funds (in the case of payment institutions) see regulation 23(1) and (2) of the PSR 2017 relevant funds account account which an institution maintains in order to safeguard relevant funds relevant funds claim claim, of a user or holder, for the return of relevant funds reverse transfer has the meaning given in regulation 30(1)(a) safeguard (in the case of electronic money institutions) (a) in the case of relevant funds received for the execution of payment transactions which are not related to the issuance of electronic money, has the same meaning as in the PSR 2017 (see regulation 23 of those Regulations), or (b) in any other case, has the same meaning as in the EMR 2011 (see regulations 20 to 22 of those Regulations) safeguard (in the case of payment institutions) has the same meaning as in the PSR 2017 (see regulation 23 of those Regulations) Schedule B1 (a) in relation to special administrations in England and Wales, or Scotland, means Schedule B1 to the IA 1986; (b) in relation to special administrations in Northern Ireland, means Schedule B1 to the I(NI)O 1989. Schedule B1 administration the administration procedure set out in Schedule B1 Schedule B1 administration order administration order made under Schedule B1 (see paragraph 10 of Schedule B1 to the IA 1986 and paragraph 11 of Schedule B1 to the I(NI)O 1989 ) Schedule B1 administrator administrator appointed under Schedule B1 small electronic money institution see regulation 2(1) of the EMR 2017 small payment institution see regulation 2(1) of the PSR 2017 special administration (except in the expression investment bank special administration) payment institution special administration or electronic money institution special administration (see regulation 4(3) ) special administration objectives Objective 1, Objective 2 and Objective 3 special administration order has the meaning given in regulation 7 statement of proposals statement of proposals drawn up by the administrator in accordance with— (a) paragraph 49 of Schedule B1 to the IA 1986 or paragraph 50 of Schedule B1 to the I(NI)O 1989 as applied and modified by these Regulations, or (b) where the FCA has given a direction, regulation 39 TA has the meaning given in regulation 24(2) transferee has the meaning given in regulation 24(2) user payment service user (see regulation 2(1) of the PSR 2017) voluntarily safeguard (in the case of small electronic money institutions) voluntarily safeguard pursuant to regulation 20(6) of the EMR 2011 and regulation 23(16) of the PSR 2017 voluntarily safeguard (in the case of small payment institutions) voluntarily safeguard pursuant to regulation 23(16) of the PSR 2017 Special administration order 7 1 A special administration order is an order appointing a person as the administrator of an institution. 2 A person is eligible for appointment as administrator under a special administration order if they are qualified to act as an insolvency practitioner in relation to the institution. 3 An appointment may be made only if the person has consented to act. 4 For the purposes of these Regulations— a an institution is “in special administration” while the appointment of the administrator has effect, b an institution “enters special administration” when the appointment of the administrator takes effect, c an institution ceases to be in special administration when the appointment of the administrator ceases to have effect in accordance with these Regulations, and d an institution does not cease to be in special administration merely because an administrator vacates office (by reason of resignation, death or otherwise) or is removed from office. Application for order 8 1 An application to the court for a special administration order may be made to the court by— a the institution, b the directors of the institution, c one or more creditors of the institution, d in England and Wales, the designated officer for a magistrates’ court in the exercise of the power conferred by section 87A of the Magistrates’ Courts Act 1980 , da in Northern Ireland, the chief clerk in the exercise of the power conferred by section 35(4A) of the Criminal Justice Act (Northern Ireland) 1945, db in Northern Ireland, a clerk of petty sessions in exercise of the power conferred by Article 92A of the Magistrates’ Courts (Northern Ireland) Order 1981, e a contributory of the institution, subject to paragraph (7), f a combination of persons listed in sub-paragraphs (a) to (e), g the Secretary of State, or h the FCA. 2 Where an application is made by a person other than the FCA, the FCA is entitled to be heard at— a the hearing of the application for a special administration order, and b any other hearing of the court in relation to the institution under these Regulations. 3 An application must nominate a person to be appointed as the administrator. 4 As soon as is reasonably practicable after making the application, the applicant must notify— a a person who gave notice to the FCA in accordance with Condition 1 of regulation 11 , and b such other persons as may be described in special administration insolvency rules. 5 An application may not be withdrawn without the permission of the court. 6 In paragraph (1)(c), “creditor” includes a contingent creditor and a prospective creditor. 7 A contributory (“C”) is not entitled to make an application for a special administration order unless either— a the number of members is reduced below 2, or b the shares in respect of which C is a contributory, or some of them, either were originally allotted to C, or have been held by C and registered in C’s name, for at least 6 months during the 18 months before the commencement of the special administration, or have devolved on C through the death of a former holder. Grounds for applying 9 1 In this regulation— a Ground A is that the institution is, or is likely to become, unable to pay its debts, b Ground B is that it is fair to put the institution into special administration, and c Ground C is that it is expedient in the public interest to put the institution into special administration. 2 For the meaning of “unable to pay its debts”, in paragraph (1)(a), see section 93(4) of the BA 2009 (as applied and modified by the EMR 2011 and the PSR 2017 ). 3 The FCA or a person listed in regulation 8 (1)(a) to (f) may apply for a special administration order only if they consider that Ground A or Ground B is met. 4 The Secretary of State may apply for a special administration order only if it appears to the Secretary of State that Grounds B and C are met. 5 The sources of information on the basis of which the Secretary of State may reach a decision on Ground C include those listed in section 124A(1) of the IA 1986 or, as the case may be, Article 104A of the I(NI)O 1989 (petition for winding up on grounds of public interest). Powers of the court 10 1 On an application for a special administration order the court may— a grant the application in accordance with paragraph (2); b dismiss the application; c adjourn the hearing (generally or to a specified date); d make an interim order; e on the application of the FCA, treat the application as an application by the FCA for Schedule B1 administration in accordance with section 359(1) of the FSMA 2000 ; f make any other order which the court thinks appropriate. 2 The court may make a special administration order if it is satisfied ...— a on the application of persons listed in regulation 8 (1)(a) to (e) or the FCA, that Ground A or Ground B in regulation 9 is satisfied, or b on the application of the Secretary of State, ... that Grounds B and C in regulation 9 are satisfied. 3 Where the application for a special administration order is made by members of the institution as contributories on the basis that Ground B in regulation 9 is satisfied, the court must make a special administration order if it is of the opinion that— a the applicants are entitled to relief either by a special administration order being made in respect of the institution or by some other means, and b in the absence of any other remedy it would be fair that the special administration order be made in respect of the institution. 4 But paragraph (3) does not apply if the court is also of the opinion that an alternative remedy is available to the applicants and that they are acting unreasonably in applying for a special administration order instead of pursuing that other remedy. 5 A special administration order takes effect in accordance with its terms. Notice to FCA: other proceedings 11 1 An application for a Schedule B1 administration order in respect of an institution may not be determined unless all of Conditions 1 to 4 are satisfied. 2 An application for an order under regulation 5 of the IBSAR 2011 in respect of an institution may not be determined unless all of Conditions 1 to 4 are satisfied. 3 A petition for a winding-up order in respect of an institution may not be determined unless all of Conditions 1 to 4 are satisfied. 4 A resolution for voluntary winding up of an institution may not be made unless all of Conditions 1 to 4 are satisfied. 5 A Schedule B1 administrator of an institution may not be appointed unless all of Conditions 1 to 4 are satisfied. 6 Condition 1 is that the FCA has been notified— a by the applicant for a Schedule B1 administration order, that the application has been made, b by the applicant for an order under regulation 5 of the IBSAR 2011, that the application has been made, c by the petitioner for a winding-up order, that the petition has been presented, d by the institution, that a resolution for voluntary winding up may be made, or e by the person proposing to appoint a Schedule B1 administrator, of the proposed appointment. 7 Condition 2 is that a copy of the notice complying with Condition 1 has been filed (in Scotland, lodged) with the court and made available for public inspection by the court. 8 Condition 3 is that— a the period of 2 weeks, beginning with the day on which the notice is received by the FCA, has ended, or b the FCA has informed the person who gave the notice that it consents to the proceedings to which the notice relates going ahead. 9 Condition 4 is that no application for a special administration order is pending. 10 Where the FCA receives notice under Condition 1, it must inform the person who gave the notice, within the period in Condition 3— a whether or not it consents to the proceedings to which the notice relates going ahead, b whether or not it intends to apply for those (or alternative) proceedings itself, or c whether it intends to apply for a special administration order. 11 Arranging for the giving of the notice in order to satisfy Condition 1 may be treated as a step with a view to minimising the potential loss to the institution’s creditors for the purpose of section 214 of the IA 1986 or, as the case may be, Article 178 of the I(NI)O 1989 as applied and modified by these Regulations. Special administration objectives 12 1 The administrator has the following special administration objectives. 2 Objective 1 is to ensure the return of relevant funds— a as soon as is reasonably practicable in accordance with regulations 13 to 15 and 17 to 34 , or b promptly, in the case of post-administration receipts, in accordance with regulation 16 , subject to paragraph (10). 3 Objective 2 is to ensure timely engagement with payment system operators, the Payment Systems Regulator and the Authorities in accordance with regulation 35 . 4 Objective 3 is to either— a rescue the institution as a going concern, or b wind it up in the best interests of the creditors. 5 The order in which Objectives 1 to 3 are listed in this regulation is not significant. 6 The administrator is entitled to deal with and return relevant funds in whatever order the administrator thinks best achieves Objective 1. 7 The administrator must commence work on each objective immediately after appointment, prioritising the order of work on each objective as the administrator thinks fit, in order to achieve the best result overall for users or holders and creditors. 8 The administrator must set out, in the statement of proposals, the order in which the administrator intends to further pursue the objectives once the statement has been approved. 9 The administrator must work to achieve each objective, in accordance with the priority afforded to the objective, as quickly and efficiently as is reasonably practicable. 10 Paragraphs (2) and (6) and regulations 13 to 23 do not apply to relevant funds received by— a a small payment institution, or b in the case of funds received for the execution of payment transactions that are not related to the issuance of electronic money, a small electronic money institution, where the institution had not chosen to voluntarily safeguard the funds when it entered special administration. Objective 1: initial reconciliation 13 1 The administrator must carry out a reconciliation immediately after appointment, subject as follows. 2 The purpose of the reconciliation is— a to identify any shortfall or excess in an asset pool, according to the institution’s own records, which it would have settled, had it not entered special administration, and b to settle this with the institution’s own bank accounts. 3 The administrator must carry out the reconciliation using the method adopted by the institution when it last carried out a reconciliation to identify any shortfall or excess in the asset pool and to settle that shortfall or excess (“last reconciliation”). 4 Paragraph (1) does not apply where the administrator cannot identify any occasion on which the institution carried out a reconciliation of that kind. 5 The reconciliation must be based on the records and accounts of the institution as they stood immediately after the last reconciliation. 6 The administrator must take no further account— a of money received by the institution, or b of payments, transfers or transactions made by the institution, of which account was taken in the last reconciliation. 7 The administrator must take account of— a money received by the institution, and b payments, transfers and transactions made by the institution, after the institution’s last reconciliation and before the appointment of the administrator. 8 The administrator must, where amount A exceeds amount B, transfer an amount equal to, or as close as possible to, the difference from the institution’s own bank accounts to an appropriate relevant funds account. 9 The administrator must, where amount B exceeds amount A, transfer an amount equal to the difference from the asset pool to the institution’s own bank accounts. 10 “Amount A” means the total amount of relevant funds which the institution is required to safeguard, according to its own records and accounts. 11 “Amount B” means the total amount of relevant funds which are being safeguarded. 12 In paragraph (11), the reference to “amount” is— a in the case of liquid assets, a reference to the amount of the cash proceeds of realising those assets without delay, and b in the case of insurance policies or guarantees, to be determined in accordance with the method adopted at the last reconciliation. 13 This regulation does not apply to an institution which is also an investment bank within the meaning of the BA 2009 (see section 232 of that Act ). 14 Nothing in this regulation authorises an administrator to transfer funds from one of the institution’s own bank accounts to a relevant funds account where to do so would interrupt a payment to a payment system operator to settle a payment transaction. 15 This regulation does not apply to post-administration receipts (see regulation 16 ). Objective 1: constitution of asset pool 14 1 The administrator must take the following steps relating to the constitution of an asset pool— a as soon as reasonably practicable after the reconciliation under regulation 13 , or b where regulation 13(4) or 13(13) applies, as soon as reasonably practicable after appointment. 2 The administrator must— a take reasonable steps to identify any relevant funds held as funds in the institution’s own accounts, and b transfer those funds into an appropriate relevant funds account. 3 The administrator must, where relevant funds are held in the asset pool in the form of liquid assets— a liquidate those assets, and b deposit the cash proceeds in an appropriate relevant funds account. 4 But paragraph (3) does not apply where the administrator thinks that Objective 1 would be better achieved by continuing, during any period, to hold the relevant funds in the form of liquid assets. 5 The administrator must, where relevant funds are covered by insurance policies or guarantees, take any steps which are necessary to ensure that, subsequently, at the appropriate time— a claims may be made for the cash proceeds of those policies or guarantees without delay, and b those cash proceeds are deposited in an appropriate relevant funds account without delay. 6 Nothing in this regulation prevents an administrator from subsequently repeating any of the steps in this regulation, in pursuit of Objective 1. 7 This regulation does not apply to post-administration receipts (see regulation 16 ). Objective 1: monitoring and maintaining asset pool 15 1 The administrator must monitor any funds, liquid assets or insurance policies or guarantees held within an asset pool. 2 That duty includes a duty to compare, from time to time, the institution’s internal accounts and records with those of any third party with custody or control over funds or liquid assets held within an asset pool. 3 The administrator may decide when and how often to perform that comparison depending on— a the circumstances of the institution, b the scale, frequency and nature of activity after its entry into special administration. 4 The administrator must also maintain any funds, liquid assets or insurance policies or guarantees held within an asset pool. 5 The administrator must, in carrying out their duty under paragraph (4), have regard to— a whether the asset pool includes funds, liquid assets or insurance policies or guarantees, b the currencies in which funds are held and those in which users or holders have a right to be paid, c whether Objective 1 may be best achieved by changing, at any given time, the currency in which any funds are held, d whether Objective 1 may be best achieved by liquidating, at any given time, liquid assets, e the risk of any third party connected with the asset pool failing, f the general risks of fraud, misuse, negligence or poor administration, and g any other matter which the administrator thinks is relevant. 6 This regulation does not apply to post-administration receipts (see regulation 16 ). Objective 1: post-administration receipts 16 1 This regulation applies to relevant funds received by an institution while it is in special administration. 2 The administrator may only hold the funds in a relevant funds account which does not (or will not) contain relevant funds held when the institution entered special administration. 3 The account mentioned in paragraph (2) includes an account which existed when the institution entered special administration. 4 The administrator must promptly return the relevant funds to the user or holder, less any costs incurred by the administrator in returning them. 5 Regulations 17 to 34 do not apply to relevant funds to which this regulation applies. Objective 1: determining claim entitlements 17 1 The administrator must, in respect of an asset pool, as soon as reasonably practicable after appointment, determine— a the identity of every user or holder on behalf of whom the institution was required to safeguard relevant funds, and b for each such person, the amount of relevant funds which it was required to safeguard. 2 The determination under paragraph (1) must relate to the precise time at which the institution entered special administration. 3 The administrator may, where making that determination, have regard to the particulars of— a any transactions involving the institution, b the institution’s internal records or systems, c any payment systems which the institution participates in (whether directly or indirectly), d any internal or external records involving the institution, e any agency, distribution or outsourcing arrangements the institution has entered into, or f any information obtained through the bar date or hard bar date process set out in regulations 20 and 21 respectively. 4 Nothing in this regulation prevents an administrator from subsequently revising any determination under paragraph (1), in pursuit of Objective 1. Objective 1: principles of distribution 18 1 A user’s or holder’s entitlement to a distribution of relevant funds from an asset pool must be determined by reference to the amount of relevant funds which that person is entitled to claim against the institution (see regulation 17 ). 2 Regulation 19 makes provision about entitlements to a distribution of relevant funds where there is a shortfall in an asset pool. 3 Relevant funds claims are to be paid from an asset pool in priority to all other claims. 4 Paragraph (3) is subject to paragraphs (5) and (6) and regulation 21(4) (which relates to late claims). 5 Relevant funds claims do not take priority over the costs of distribution. 6 Relevant funds claims do not take priority over any third party’s fees and expenses for operating a relevant funds account in so far as the party has a right of set off or a security right against the funds for the fees or expenses. Objective 1: shortfalls in asset pool 19 1 This regulation applies if the administrator becomes aware — a that the amount of relevant funds available for distribution in an asset pool is less than the total amount liable to be paid under relevant funds claims for that asset pool, and b that shortfall cannot be made good— i by taking any of the steps mentioned in regulation 14 (which relates to the constitution of the asset pool), or ii by the resolution of ongoing disputes. 2 The administrator must, in making the distribution, ensure that the shortfall referred to in paragraph (1) be borne pro rata by all users or holders for whom the institution holds relevant funds within the asset pool. 3 Paragraph (2) is subject to regulations 20 and 21 . 4 Nothing in this regulation affects any right of a user or holder to claim the shortfall borne under paragraph (2) in other ways (for example as an unsecured creditor). 5 An administrator may not, where an electronic money institution has two asset pools (see regulation 20(6) of the EMR 2011), offset any shortfall in one asset pool against any relevant funds or assets held in the other. Objective 1: bar date 20 1 The administrator may, if they think it necessary in order to expedite the return of relevant funds from an asset pool, set a bar date for the submission of relevant funds claims. 2 The bar date must be set out in a notice. 3 A reasonable time must be given after the notice has been published for persons to be able to calculate and submit relevant funds claims before the bar date. 4 The administrator must, as soon as reasonably practicable after the bar date, make a distribution of relevant funds from the asset pool to persons who are entitled to them under their claims. 5 The administrator must, so far as is reasonably practicable, include within that distribution any person who submits a late, pre-distribution claim. 6 The administrator must, when determining the amount to be distributed, make allowance for any entitlement to the return of relevant funds (by way of a subsequent distribution) which will not be distributed under paragraph (4). 7 No payment or part of any payment made to any person in the distribution under paragraph (4) may be recovered for the purpose of meeting a relevant funds claim which is not taken into account in that distribution. 8 The restriction in paragraph (7) does not apply where— a relevant funds were returned to a person by the administrator in bad faith in which that person was complicit, or b a person to whom relevant funds were returned is later found to have made a false relevant funds claim. 9 The administrator must include a person who makes a late, pre-distribution claim or a late, post-distribution claim in a subsequent distribution from the asset pool if that person would have been included in the distribution under paragraph (4) had their relevant funds claim been submitted earlier. 10 In this regulation— “late, pre-distribution claim” means a relevant funds claim made after a bar date but before the corresponding distribution under paragraph (4); “late, post-distribution claim” means a relevant funds claim made after a bar date and after the corresponding distribution under paragraph (4). Objective 1: hard bar date 21 1 The administrator may, if they think it necessary in order to further expedite the return of relevant funds from an asset pool after setting a bar date under regulation 20 , set a hard bar date for the submission of final relevant funds claims. 2 The hard bar date must be set out in a notice. 3 The administrator may not set a hard bar date without the approval of the court given on application by the administrator. 4 The priority afforded to relevant funds claims under the following provisions does not apply to late claims— a regulation 18(3) , and b any provision of the safeguarding provisions; and no late claim may be founded on a beneficial interest in property. 5 Immediately after the hard bar date, any relevant funds held in the asset pool which have not been claimed may also be distributed, in accordance with Objective 1, to users or holders who are entitled to them under their claims made before the hard bar date. 6 The administrator must, as soon as reasonably practicable after the hard bar date, make a final distribution of relevant funds from the asset pool to users or holders who are entitled to them under their claims made before the hard bar date. 7 Immediately after that final distribution, the ownership of any relevant funds which remain in the asset pool is vested in the institution and the administrator must, as soon as possible, transfer those funds to the institution’s own bank accounts. 8 A notice under this regulation must— a specify the hard bar date, and b refer to paragraphs (4) to (6) and explain that (in accordance with paragraph (7)) following the distribution of relevant funds from the asset pool any remaining funds will be transferred to the institution’s own bank accounts. 9 In this regulation— “late claim” means a relevant funds claim, in response to the setting of a hard bar date, received after the hard bar date; “safeguarding provisions” means— regulation 23 of the PSR 2017, in the case of the following relevant funds— those received by a payment institution, or those received by an electronic money institution for the execution of payment transactions which are not related to the issuance of electronic money, or regulations 20 to 24 of the EMR 2011, in the case of relevant funds received by an electronic money institution apart from those in paragraph (a)(ii). Objective 1: hard bar date: powers of the court 22 1 On an application under regulation 21(3) for the approval of the court to set a hard bar date the court may— a make an order approving the setting of a hard bar date, b adjourn the hearing of the application conditionally or unconditionally, or c make any other order that the court thinks appropriate. 2 The court may make an order under paragraph (1)(a) only if— a it is satisfied that the administrator has taken all reasonable measures to identify and contact persons who may be entitled to the return of relevant funds, and b it considers that, if a hard bar date is set, there is no reasonable prospect that the administrator will receive claims for the return of relevant funds after that date. Objective 1: interest on relevant funds claims 23 1 This regulation applies where— a a debt arises from a liability of the institution to return relevant funds, b the user or holder has not submitted a relevant funds claim or has submitted a relevant funds claim after a hard bar date, and c the user or holder makes a claim for payment of the debt. 2 The user or holder is not entitled to interest on the debt for the period commencing on the date on which the institution entered special administration, except interest on such part of the debt which remains after deduction of the total amount which the user or holder would have received on a relevant funds claim. Objectives 1 and 3: transfer arrangements: overview 24 1 This regulation and regulations 25 to 34 make provision for where there is a transfer arrangement. 2 A transfer arrangement (“TA”) is a binding arrangement in pursuit of Objective 1 (whether or not also in pursuit of Objective 3) with another institution which transfers to that institution (“the transferee”)— a all or some of the property, rights and liabilities of the institution in special administration, and b all or some of the relevant funds held by the institution in special administration such that the transferee becomes the payment institution or electronic money institution in respect of those funds. 3 A partial property transfer arrangement (“PPTA”) is any TA which does not transfer all of the property, rights and liabilities of, and relevant funds held by, the institution. 4 Regulations 25 to 28 make provision about TAs. 5 Regulations 29 to 34 make further provision about PPTAs. 6 In this regulation and regulations 25 to 34 , a reference to the rights and liabilities of an institution or to rights and liabilities under a PS or EMI contract in relation to property held by the institution on trust (however arising) includes— a the legal and beneficial interest of the institution in the property, and b the powers and obligations of the institution acting as a trustee of the property. Objectives 1 and 3: TAs: Conditions 1 to 3 25 1 The administrator may not enter into the TA unless all of Conditions 1 to 3 are met. 2 Condition 1 is that the arrangement includes such provision as the administrator thinks necessary to ensure that users or holders whose relevant funds are to be transferred will be able to exercise their rights in relation to those funds as soon as reasonably practicable after the transfer. 3 Condition 2 is that the institution has obtained a contractual undertaking from the transferee that the transferee will— a safeguard the relevant funds to be transferred, and b after the transfer, safeguard any further relevant funds of users or holds whose relevant funds, rights or liabilities under PS or EMI contracts were transferred. 4 Paragraph (3) applies even if the transferee is a small payment institution or a small electronic money institution. 5 Condition 3 is that the institution has obtained a contractual undertaking from the transferee that the transferee will, within a period of 14 days beginning with the day on which the arrangement is entered into, notify the persons in paragraph (6) of the matters in paragraph (7) . 6 The persons who must be notified are— a the users or holders whose relevant funds are to be transferred, b any agents of the institution, and c in the case of electronic money institutions, any distributors of the institution. 7 The notice must— a explain the undertaking given in accordance with paragraph (3), and b in the case of a PPTA, explain the right to a reverse transfer in accordance with regulation 30 . 8 Regulation 29(1) to (3) contains a further condition (Condition 4) for PPTAs. Objectives 1 and 3: TAs: effect 26 1 The transfer of any of the following under the TA has effect, despite the existence of any matter mentioned in paragraph (2) — a relevant funds; b any rights or liabilities under the corresponding PS or EMI contracts; c any rights and liabilities under other PS or EMI contracts for which no relevant funds are held at the time of transfer. 2 The matters are— a a restriction affecting what can or cannot be assigned or transferred by the institution (whether generally or by a particular person or particular description of persons), b a requirement (however referred to) to give notice to, or obtain the consent of, any person who is party to the PS or EMI contract, c in the case of a payment institution, a requirement (however referred to) to give notice to, or obtain the consent of any person who is party to a contract under which a person provides agency services to the institution, d in the case of an electronic money institution, a requirement (however referred to) to give notice to, or obtain the consent of any person who is party to a contract under which a person provides agency or distribution services to the institution, or e any entitlement of any person to the return of the relevant funds otherwise than by transfer under the arrangement. 3 Paragraphs (1) and (2) are subject to subject to regulation 29(4) and (5) . 4 In paragraph (2) , it does not matter whether a restriction, requirement or entitlement has effect by virtue of a provision contained in a contract or an enactment, or in any other way, subject to paragraph (5) . 5 In paragraph (2)(a) the reference to a restriction does not include one imposed by— a regulations 20 to 22 of the EMR 2011, or b regulation 23 of the PSR 2017. 6 If the TA purports to be one which is not a PPTA despite a possibility that anything purportedly transferred is foreign property (and might not have been effectively transferred), the administrator may assume it is a TA which is not a PPTA and that regulations 29 to 34 do not apply. Objectives 1 and 3: TAs: novation of contracts 27 1 The TA has effect so that contracts falling within Types 1 to 4 are to be read, immediately after the transfer, as if they had been made by the transferee rather than the institution. Type Description Type 1 PS or EMI contracts which relate to the relevant funds which are transferred. Type 2 Other PS or EMI contracts which confer or impose rights or liabilities which are transferred but for which no relevant funds are held at the time of transfer. Type 3 Contracts— (a) where the institution is a payment institution which is a party to the contract, (b) under which another person provides agency services to that institution, and (c) under which that other person provides those services in respect of those users whose relevant funds or rights or liabilities under contracts for payment services are being transferred. Type 4 Contracts— (a) where the institution is an electronic money institution which is party to the contract, (b) under which another person provides agency or distribution services to that institution, and (c) under which that other person provides those services in respect of those users or holders whose relevant funds or rights or liabilities under PS or EMI contracts are being transferred. 2 The TA also has effect so that the transferee may, immediately after the transfer, vary the terms of a PS or EMI contract without obtaining the agreement of any person who is party to the contract to the following extent— a to give effect to the TA, and b to ensure that the powers, rights and obligations of the transferee acting as a trustee are exercisable. Objectives 1 and 3: TAs: disclosure of information 28 1 The administrator may, where necessary for the purposes of a TA, disclose to the transferee all information which is, in the administrator’s view, relevant to the transfer of— a relevant funds, b any rights or liabilities under the corresponding PS or EMI contracts, c any rights and liabilities under other PS or EMI contracts for which no relevant funds are held at the time of transfer. 2 Paragraph (1) overrides any contractual or other requirement to keep information in confidence. 3 Nothing in this regulation requires or authorises a disclosure of information that would contravene the data protection legislation (but in determining whether a disclosure would do so, take into account the duties and powers imposed or conferred by these Regulations). 4 “Data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3(9) of that Act). Objectives 1 and 3: PPTAs: Condition 4 and restrictions 29 1 The administrator may enter a PPTA only if Condition 4 is met (in addition to all of Conditions 1 to 3 in regulation 25 ). 2 Condition 4 is that the administrator is satisfied that no user or holder (or person acting on their behalf) will, pursuant to Objective 1 or 3, subsequently have returned or transferred to them an amount of retained relevant funds less than if the administrator had not entered the PPTA. 3 “Retained relevant funds” means any relevant funds held by the institution which are not transferred under the PPTA. 4 Regulation 26(1) does not apply to the requirement described in paragraph (2) (b) of that regulation in the case of a PPTA unless— a the PPTA transfers— i all of the relevant funds held by the institution, and ii all of the rights and liabilities under the corresponding PS or EMI contracts, and b the administrator is satisfied that either— i the total amount of relevant funds to be transferred is at least equal to the total amount that the institution is, at the time of transfer, required to safeguard, or ii the transferee has undertaken to make good any shortfall in that amount. 5 Regulation 26(1) does not apply to the requirements described in paragraph (2) (c) and (d) of that regulation in the case of a PPTA unless the PPTA transfers— a all of the relevant funds held by the institution, b all of the rights or liabilities under the corresponding PS or EMI contracts, and c all of the rights and liabilities under other PS or EMI contracts for which no relevant funds are held at the time of transfer. Objectives 1 and 3: PPTAs: reverse transfers 30 1 A PPTA must include such provision as the administrator thinks appropriate— a to ensure that a user or holder whose relevant funds are to be transferred by the arrangement will be entitled to demand a transfer back to the institution of any relevant funds which are transferred (“reverse transfer”), b for the identification of relevant funds for the purposes of a reverse transfer, and c to ensure that the transferee is obliged to give effect to the reverse transfer as soon as reasonably practicable after the demand is made. 2 A reverse transfer has effect to transfer back to the institution all rights and liabilities under the corresponding PS or EMI contract so far as they have effect in relation to the reverse-transferred relevant funds. 3 The administrator must take all steps necessary to give effect to the reverse transfer. Objectives 1 and 3: PPTAs: set-off and netting 31 1 A PPTA may not provide for the transfer of some (but not all) of the protected rights and liabilities (“PRL”) between the institution and— a a user or holder (“U”), or b another person (“P”). 2 PRL are— a rights and liabilities which U or P or the institution is entitled to set off or net under a particular set-off arrangement, netting arrangement or title transfer financial collateral arrangement which U or P has entered into with the institution, and b not excluded rights (“ER”) or excluded liabilities (“EL”). 3 ER, in relation to rights between U or P and the institution, means “excluded rights” within the meaning of the Banking Act 2009 (Restriction of Partial Property Transfers) Order 2009 (see article 1(3)), subject as follows— Provision Modification Paragraph (a) To be read as if for “relate to a retail deposit” there were substituted “conferred by a PI or EMI contract”. Paragraph (b) To be read as if for “relate to a retail liability owed to a banking institution” there were substituted “are conferred, in relation to relevant funds, by an enactment”. Paragraphs (c) and (d) Omitted. Paragraph (e) To be read as if after “subordinated debt” there were inserted “issued by U or P or the institution”. Paragraph (f) To be read as if after “article 3(1)” there were inserted “issued by U or P or the institution”. 4 “EL” is to be read in light of paragraph (3) . 5 It is immaterial whether or not— a the arrangement which permits U or P or the institution to set off or net rights and liabilities also permits U or P or the institution to set off or net rights and liabilities with another person, or b the right of U or P or the institution to set off or net is exercisable only on the occurrence of a particular event. 6 A PPTA made in contravention of this regulation does not affect the exercise of the right to set off or net. 7 If a PPTA purports to transfer all of the PRL between U or P and the institution despite a possibility that any of the PRL are foreign property (and might not have been effectively transferred), the administrator may assume it is a PPTA which is not subject to the restriction in paragraph (1). 8 In this regulation— “netting arrangement” has the same meaning as in the IBSAR 2011 (see regulation 10D(6)); “set-off arrangement” means an arrangement under which two or more debts, claims or obligations can be set off against each other; “title transfer financial collateral arrangement” has the same meaning as in the Financial Collateral Arrangements (No 2) Regulations 2003 (see regulation 3(1)). Objectives 1 and 3: PPTAs: security interests 32 1 This regulation applies where under any binding arrangement one party owes to the other a liability which is secured against any property or rights. 2 But this regulation does not apply if the institution entered into the binding arrangement in contravention of— a regulation 21(4) or 22(2) of the EMR 2011, b any authorisation of the institution as a electronic money institution (or variation of that authorisation) under the EMR 2011 (see regulations 5 to 11 of those regulations), c regulation 23(8) of the PSR 2017, d any authorisation of the institution as a payment institution (or variation of that authorisation) under the PSR 2017 (see regulations 5 to 12 of those regulations). e a rule prohibiting such arrangements made by the FCA under the FSMA 2000, or f otherwise than in accordance with the institution’s Part 4A permission within the meaning given by section 55A(5) of the FSMA 2000. 3 In paragraph (1), it is immaterial whether or not— a the liability is secured against all or substantially all of the property or rights of a person, b the liability is secured against specified property or rights, or c the property or rights against which the liability is secured are owned by the person who owes the liability. 4 A PPTA may not transfer the property or rights against which the liability is secured unless that liability and the benefit of the security are also transferred. 5 A PPTA may not transfer the benefit of the security unless the liability which is secured is also transferred. 6 A PPTA may not transfer the liability unless the benefit of the security is also transferred. 7 If a PPTA purports to be in compliance with paragraphs (4) to (6) despite a possibility that any property, right or liability is foreign property (and might not have been effectively transferred), the administrator may assume the property, rights and liabilities may be transferred in accordance with paragraphs (4) to (6) . Objectives 1 and 3: PPTAs capital markets arrangements 33 1 A PPTA may not provide for the transfer of some (but not all) of the property, rights and liabilities which are or form part of a capital market arrangement to which the institution is a party (“CMPRL”). 2 But paragraph (1) does not apply where the only property, rights and liabilities which are or are not transferred relate to deposits. 3 If a PPTA purports to transfer all of the CMPRL despite a possibility that any of them are foreign property (and might not have been effectively transferred), the administrator may assume it is a PPTA which is not subject to the restriction in paragraph (1). 4 In this regulation— “capital market arrangement” has the meaning given by paragraph 1 of Schedule 2A to the IA 1986 or, as the case may be, paragraph 1 of Schedule 1A to the I(NI)O 1989 ; “deposit” has the same meaning as in article 5 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 , disregarding the exclusions in other articles of that Order. Objectives 1 and 3: PPTAs: financial markets 34 1 A PPTA may not transfer property, rights and liabilities to the extent that doing so would have the effect of modifying, modifying the operation of, or rendering unenforceable— a a market contract; b the default rules of the Payment Systems Regulator; or c any rules of the Payment Systems Regulator not dealt with under its default rules. 2 A PPTA is void in so far as it is made in contravention of this regulation. 3 In this regulation— “default rules” has the same meaning as in the Companies Act 1989 (see section 188 of that Act); “market contract” has the same meaning as in the FSMA 2000 (see section 286(4) of that Act). Objective 2: engagement: payment systems, market disruption and consumer protection 35 1 The administrator must work with payment system operators— a to facilitate the operation of their rules or arrangements, b to resolve issues arising from the operation of those rules or arrangements, and c to facilitate the transfer, settlement or prompt cancellation of non-settled payments, in respect of the institution. 2 The administrator must also work with the Payment Systems Regulator and the Authorities to facilitate any actions they propose to take— a to minimise the disruption of businesses and the markets, or b to secure an appropriate degree of protection for users or holders, as a consequence of a special administration order being made in respect of the institution. 3 In this regulation “work with” means— a to comply, as soon as reasonably practicable, with a written request from a payment systems operator, the Payment Systems Regulator or any of the Authorities for the provision of information or the production of documents (in whatever format) relating to the institution, and b to allow any of those persons, on reasonable request, access to the facilities, staff and premises of the institution. 4 But nothing in this regulation requires the administrator to take action to the extent that, in their opinion, it would lead to a material reduction in the value of the property of the institution. 5 If the administrator receives a request under paragraph (1) from a payment system operator based overseas, no action needs to be taken to the extent that it conflicts with a request from any of the Authorities or the Payment Systems Regulator. 6 Where a payment system operator has made a request under paragraph (1) and the administrator, in pursuit of Objective 2, reasonably requires information in connection with this, the operator must provide the administrator with the information. 7 Nothing in this regulation requires the administrator, a payment systems operator, the Payment Systems Regulator or any of the Authorities to provide any information— a which they would be entitled to refuse to provide on grounds of legal professional privilege in proceedings in the High Court or on grounds of confidentiality of communications in the Court of Session, or b if such provision by the person holding it would be prohibited by or under any enactment. Continuity of supply 36 1 This regulation applies where, before the special administration order is made, the institution had entered into arrangements with a supplier for the provision of a supply to the institution. 2 After the special administration order is made, the supplier— a may not terminate a supply unless— i any charges in respect of the supply, being charges for a supply given after the special administration order is made, remain unpaid for more than 28 days, ii the administrator consents to the termination, or iii the supplier has the permission of the court, which may be given if the supplier can show that the continued provision of the supply would cause the supplier to suffer hardship, and b may not make it a condition of a supply, or do anything which has the effect of making it a condition of the giving of a supply, that any outstanding charges in respect of the supply, being charges for a supply given before the special administration order is made, are paid. 3 Where, before the special administration order is made, a contractual right to terminate a supply has arisen but has not been exercised, then, for the purposes of this regulation, the making of the special administration order causes that right to lapse and the supply may only be terminated if a ground in paragraph (2)(a) applies. 4 Any provision in a contract between the institution and the supplier that purports to terminate the agreement if any action is taken to put the institution into special administration is void. 5 Any expenses incurred by the institution on the provision of a supply after the special administration order is made are to be treated as necessary disbursements in the course of the special administration. 6 In this regulation— “accredited network provider” means a person accredited with a relevant system who operates a secure data network through which the institution communicates with the relevant system; “relevant system” has the meaning set out in regulation 2(1) of the Uncertificated Securities Regulations 2001 , “sponsoring system participant” has the meaning set out in regulation 3 of the Uncertificated Securities Regulations 2001 (in the definition of “system participant”), “supplier” means the person controlling the provision of a supply to the institution under a licence, sub-licence or other arrangement, and includes a company that is a group undertaking (within the meaning of section 1161(5) of the CA 2006) in respect of the institution, but does not include payment system operators; “supply” means a supply of— services relating to the safeguarding of relevant funds; computer hardware or software or other hardware used by the institution, financial data, infrastructure permitting electronic communication services, data processing, secure data networks provided by an accredited network provider, or access to a relevant system by a sponsoring system participant, but does not include any services provided for in the contract between the institution and the supplier beyond the provision of the supply. Application of the IA 1986 in England, Wales and Scotland 37 1 The provisions of the IA 1986 mentioned in the first column of the Table apply to special administration as they apply to any other insolvency proceedings, with any modifications shown in the third column. 1A This regulation applies to the special administration of, or in relation to, an institution which is incorporated in, or formed under the law of England and Wales or Scotland. 1B For the purposes of paragraph (1A), an institution whose registered office, or in the case of an institution with no registered office, whose principal place of business, is situated in one part of the United Kingdom is to be treated as incorporated in, or formed under, the law of that part. 2 This regulation is subject to— a Schedule 1 (which makes provision about how special administration applies to limited liability partnerships), and b Schedule 2 (which makes provision about how special administration applies to partnerships). Provision Subject Modifications Sections Generally (for the provisions of this part of the table mentioned below) To be read as if— (a) references to a provision of the IA 1986 which is applied and modified by these Regulations were to the provision as applied and modified by these Regulations, (b) references to the liquidator were to the administrator, (c) references to winding up were to special administration, (d) references to winding up by the court were to the imposition of special administration by order of the court, (e) references to being wound up under Part 4 or 5 of the IA 1986 were to being in special administration, (f) references to the commencement of winding up were to the commencement of special administration, (g) references to going into liquidation were to entering special administration, (h) references to liquidation or to insolvent liquidation were to special administration, (i) references to a winding-up order were to a special administration order, and (j) references to a company were to an institution. Those general modifications are subject to any specific modifications below. Sections 74 and 76–83 Contributories Section 167 (and Schedule 4) Powers of the liquidator To be read as if— (a) in subsection (2) the references to a liquidation committee were to a creditors’ committee; (b) a user or holder may also apply to the court under subsection (3); (c) in Schedule 4, paragraphs 4 to 10 and 12 were omitted and in paragraph 13, the reference to winding up the company’s affairs and distributing its assets were to pursuing the special administration objectives. Section 168(4) Discretion in managing and distributing assets Section 176 Preferential charges on goods distrained Section 176ZB Application of proceeds of office-holder claims Section 176A Unsecured creditors Section 178 Disclaimer of onerous property Section 179 Disclaimer of leaseholds Section 180 Land subject to rent charge Section 181 Disclaimer: powers of court Section 182 Powers of court (leaseholds) Section 183 Effect of execution or attachment (England and Wales) To be read as if subsection (2)(a) were omitted. Section 184 Duties of officers To be read as if, in subsection (1), there were no reference to a resolution having been passed for voluntary winding up. Section 185 Effect of diligence (Scotland) To be read as if, in the application of subsections (3) to (10) of section 23A of the Bankruptcy (Scotland) Act 2016 (asp 21) , the reference to an order of the court awarding winding up were to the making of the special administration order. Section 186 Rescission of contracts by the court Section 187 Power to make over assets to employees Section 193 Unclaimed dividends (Scotland) Section 194 Resolutions passed at adjourned meetings To be read as it applied immediately before its repeal by paragraph 46 of Schedule 9 to the SBEEA 2015. Section 196 Judicial notice of court documents Section 197 Commission for receiving evidence Section 198 Court order for examination of persons in Scotland Section 199 Costs of application for leave to proceed (Scottish companies) Section 206 Fraud in anticipation of winding up To be read as if, in subsection (1), there were no reference to passing a resolution for voluntary winding up. Section 207 Transactions in fraud of creditors To be read as if, in subsection (1), there were no reference to passing a resolution for voluntary winding up. Section 208 Misconduct in course of winding up To be read as if— (a) in subsection (1), “whether by the court or voluntarily” were omitted; (b) there were no amendment made by paragraph 52 of Schedule 9 to the SBEEA 2015. Section 209 Falsification of company’s books Section 210 Material omissions from statement To be read as if— (a) in subsection (1), “whether by the court or voluntarily” were omitted; (b) in subsection (2), “or has passed a resolution for voluntary winding up” were omitted. Section 211 False representation to creditors To be read as if in subsection (1)— (a) “whether by the court or voluntarily” were omitted; (b) the reference to the company’s creditors included users or holders. Section 212 Summary remedy Section 213 Fraudulent trading Section 214 Wrongful trading To be read as if subsection (6) were omitted. Section 215 Proceedings under section 213 or 214 Section 216 Restriction on re-use of company names To be read as if— (a) the reference to a liquidating company were to a company in special administration; (b) subsections (7) and (8) were omitted. Section 217 Personal liability for debts following contravention of section 216 To be read as if subsection (6) were omitted. Section 218 Prosecution of delinquent officers and members of company To be read as if — (a) in subsection (3), the first reference to the official receiver were omitted and the second reference were to the Secretary of State; (b) in subsection (5) the reference to subsection (4) were to subsection (3); (c) subsections (4) and (6) were omitted. Section 219 Obligations arising under section 218 To be read as if, in subsection (1), the reference to section 218(4) were to section 218(3). Section 233 Utilities Section 233A Further protection of utilities Section 234 Getting in the company’s property To be read as if — (a) for subsection (1) there were substituted— “(1) This section applies where a company enters special administration.”; (b) the references to the office-holder were references to the administrator. Section 235 Co-operation with the administrator To be read as if — (a) subsections (1) and (4)(b) to (d) were omitted; (b) the references to the office-holder were references to the administrator. Section 236 Inquiry into company’s dealings To be read as if — (a) for subsection (1) there were substituted— “(1) This section applies where a company enters special administration.”; (b) the references to the office-holder were references to the administrator. Section 237 Enforcement by the court Section 238 Transactions at an undervalue (England and Wales) Section 239 Preferences (England and Wales) Section 240 Sections 238 and 239: relevant time To be read as if — (a) in subsection (2)(a), the reference to being unable to pay debts were to be read in accordance with section 93(4) of the BA 2009 (as applied and modified by the EMR 2011 and the PSR 2017); (b) sub-paragraphs (1)(d) and (3)(a) to (d) were omitted. Section 241 Orders under sections 238 and 239 To be read as if subsections (3A) and (3B) were omitted. Section 242 Gratuitous alienations (Scotland) Section 243 Unfair preferences (Scotland) Section 244 Extortionate credit transactions Section 245 Avoidance of floating charges To be read as if — (a) in subsection (3)(c), the references to administration application and administration order were references to an application for special administration and special administration order respectively; (b) in subsection (4)(a) and (b), the reference to being unable to pay debts were to be read in accordance with section 93(4) of the BA 2009 (as applied and modified by the EMR 2011 and the PSR 2017); (c) subsections (3)(d) and (5)(a) to (c) were omitted. Section 246 Unenforceability of liens To be read as if — (a) for subsection (1) there were substituted— “(1) This section applies where a company enters special administration.”; (b) the references to the office-holder were references to the administrator. Section 246ZD Power to assign certain causes of action To be read as if— (a) for subsection (1) there were substituted— “(1) This section applies where a company enters special administration.”; (b) the references to the office holder were references to the administrator. Section 246A Remote attendance at meetings To be read as if — (a) there were no amendments made by paragraph 54 of Schedule 9 to the SBEEA 2015; (b) references to creditors included users or holders. Section 246B Use of websites Section 386 (and Schedule 6 as read with Schedule 4 to the Pensions Schemes Act 1993) Preferential debts Section 387, subsections (1) and (3A) “The relevant date” To be read as if the reference to “administration” were to special administration. Section 389 Offence of acting without being qualified To be read as if— (a) the reference to acting as an insolvency practitioner were to acting as the administrator; (b) subsection (2) were omitted. Sections 390 to 391T Authorisation and regulation of insolvency practitioners To be read as if— (a) in section 390, references to acting as an insolvency practitioner were to acting as the administrator; (b) in subsection (2) of that section, after “authorised” there were inserted “to act as an insolvency practitioner”; (c) an order under section 391 had effect in relation to any provision applied for the purposes of special administration; (d) in sections 390A, 390B(1) and (3), 391O(1)(b) and 391R(3)(b), references to authorisation or permission to act as an insolvency practitioner in relation to (or only in relation to) companies, the reference to companies had effect as a reference to companies without modification by this Table. (e) in sections 391Q(2)(b) and 391S(3)(e) the references to a company had effect a references to a company without modification by this Table. Section 411 Insolvency rules To be read as if, in subsections (1A), (2C) and (3), the reference to Part 2 of the BA 2009 were to a reference to these Regulations. Section 414 Fees orders To be read as if — (a) in subsection (1), the reference to Parts I to VII of this Act were to these Regulations; (b) there were no reference to the official receiver. Section 423 Transactions defrauding creditors To be read as if subsection (4) were omitted. Sections 424 and 425 Transactions defrauding creditors Section 426 Co-operation between courts To be read as if references to insolvency law included provisions made by or under these Regulations. Sections 430 and 431 (and Schedule 10) Offences Section 432 Offences by bodies corporate To be read as if, in subsection (4), there were no provisions of the IA 1986 listed there except for sections 206 to 211. Section 433 Statements: admissibility Sections 434B–434D Supplementary provisions To be read as if there were no amendments of section 434B made by paragraph 57 of Schedule 9 to the SBEEA 2015. Schedule B1 Generally (for the provisions of this part of the table mentioned below) To be read as if— (a) references to a provision of the IA 1986 which is applied and modified by these Regulations were to the provision as applied and modified by these Regulations, (b) references to the administrator were to the administrator appointed under regulation 7 , (c) references to administration were to special administration, (d) references to an administration order were to a special administration order, (e) references to a company were to an institution, and (f) references to the purpose of administration were to the special administration objectives. Those general modifications are subject to any specific modifications below. Paragraph 40(1)(a) Dismissal of pending winding up petition Paragraph 42 Moratorium on insolvency proceedings To be read as if sub-paragraphs (4)(a) and (4)(aa) were omitted. Paragraph 43 Moratorium on other legal processes Paragraph 44(1), (5) and (7) Interim moratorium To be read as if— (a) sub-paragraph (7) also included a reference to paragraph 44 not preventing or requiring the permission of the court for an application by the FCA for a special administration order; (b) sub-paragraph (7)(b) to (d) were omitted. Paragraph 45 Publicity Paragraph 46 Announcement of administrator’s appointment To be read as if — (a) in sub-paragraph (3)(a), in addition to obtaining the list of creditors, the administrator were also required to obtain as complete a list as possible of the users or holders of the institution; (b) in sub-paragraph (3)(b), the administrator were also required to send a notice of their appointment to each user or holder of whose claim and address the administrator is aware; (c) where the special administration application has not been made by the FCA, notice of the administrator’s appointment were also required to be sent under sub-paragraph (5) to the FCA; (d) sub-paragraphs (6)(b) and (c) were omitted. Paragraph 47 Statement of company’s affairs To be read as if, in sub-paragraph (2), there were also a reference to including particulars of the relevant funds held by the institution. Paragraph 48 Statement of company’s affairs Paragraph 49 Administrator’s proposals To be read as if — (a) sub-paragraph (2)(b) were omitted; (b) there were no amendment made by paragraph 10(2) of Schedule 9 to the SBEEA 2015; (c) in sub-paragraph (4), the administrator were also required to send a copy of the statement of proposals to every user or holder of whose claim the administrator is aware and who the administrator has a means of contacting, and to the FCA; (d) the administrator were also required to give notice that the statement of proposals is to be provided free of charge to a payment system operator who applies in writing to a specified address. The application of paragraph 49(1) to (3) is subject to regulation 38(6) . Paragraph 50 Creditors’ meeting To be read as if — (a) there were no repeal by paragraph 10(3) of Schedule 9 to the SBEEA 2015; (b) in sub-paragraph (1), the administrator were also required to summon the users or holders referred to in paragraph 49(4) to the meeting of creditors and to give such users or holders notice under sub-paragraph (1)(b); (c) the FCA were empowered to appoint a person to attend a meeting of creditors and make representations as to any matter for decision. Paragraph 51 Requirement for initial creditors’ meeting To be read as if — (a) there were no amendments made by paragraph 10(4) and (5) of Schedule 9 to the SBEEA 2015; (b) there were a requirement that each copy of an administrator’s proposals sent to a user or holder or the FCA under paragraph 49 be accompanied by an invitation to the initial creditors’ meeting. The application of paragraph 51 is subject to regulation 38(6) . Paragraph 53 Business and result of initial creditors’ meeting To be read as if — (a) there were no amendments made by paragraph 10(8) to (10) of Schedule 9 to the SBEEA 2015; (b) there were a requirement that special administration insolvency rules prescribe how users or holders are to vote at meetings of creditors; (c) in sub-paragraph (2), if the FCA has not appointed a person to attend the meeting, the administrator were also required to report any decision taken to the FCA. The application of paragraph 53 is subject to regulation 38(6) . Paragraph 54 Revision of administrator’s proposals To be read as if — (a) there were no amendments made by paragraph 10(11) to (16) of Schedule 9 to the SBEEA 2015; (b) if the revision proposed by the administrator affects both creditors and users or holders, every reference to creditors included users or holders; (c) if the administrator thinks that the revision proposed only affects either creditors or users or holders, it only applied to the affected party and required the party not affected to be informed of the revision; (d) the FCA were required to be invited to the creditors’ meeting mentioned in sub-paragraph (2)(a); (e) the statement of the proposed revision mentioned in sub-paragraph (2)(b) were also required to be sent to the FCA. The application of paragraph 54 is subject to regulation 38(6) . Paragraph 55 Failure to obtain approval of administrator’s proposals To be read as if — (a) there were no amendment made by paragraph 10(17) of Schedule 9 to the SBEEA 2015; (b) in making an order under sub-paragraph (2) the court were required to have regard to the special administration objectives; (c) sub-paragraph (2)(d) were omitted. The application of paragraph 55 is subject to regulation 38(6) . Paragraph 56 Further creditors’ meetings To be read as if — (a) there were no amendments made by paragraph 10(18) to (20) of Schedule 9 to the SBEEA 2015; (b) the administrator were required to invite the FCA to any meeting summoned. Paragraph 57 Creditors’ committee To be read as if — (a) there were no amendment made by paragraph 10(21) of Schedule 9 to the SBEEA 2015; (b) a creditors’ committee were only able to be established by a creditors’ meeting to which creditors and users or holders have both been given notice; (c) the FCA were empowered to appoint a person to attend a meeting of the creditors’ committee and make representations as to any matter for decision; (d) there were a requirement that special administration insolvency rules prescribe that, where a meeting of creditors resolves to establish a creditors’ committee, the makeup of the creditors’ committee is a reflection of all parties with an interest in the achievement of the special administration objectives. Paragraph 58 Correspondence instead of creditors’ meeting To be read as it applied immediately before its repeal by paragraph 10(22) of Schedule 9 to the SBEEA 2015. Paragraph 59 Functions of an administrator To be read as if— (a) in sub-paragraph (1) the administrator’s power were to do anything necessary or expedient in pursuit of Objectives 1 to 3; (b) in sub-paragraph (2) the reference to a provision of the Schedule expressly permitting the administrator to do a specified thing included a provision of these Regulations expressly permitting the administrator to do a specified thing; (c) at the end there were inserted— “(4) The administrator is an officer of the court.” Paragraph 60 (and Schedule 1 to the IA 1986) General powers Paragraph 61 Directors Paragraph 62 Power to call meetings To be read as if — (a) there were no amendment made by paragraph 10(23) of Schedule 9 to the SBEEA 2015; (b) the administrator were also empowered to call a meeting of users or holders or contributories. Paragraph 63 Application to court for directions Paragraph 64 Management powers Paragraph 65 Distribution to creditors To be read as if— (a) in sub-paragraph (1)— (i) the words from the beginning to “in full” were omitted; (ii) for “any other creditor” there were substituted “any creditor”; (b) sub-paragraph (3) were omitted in respect of England and Wales. Paragraph 66 Payments To be read as if the words from the beginning to “have been met,” were omitted; Paragraph 67 Property Paragraph 68 Management To be read as if references to proposals approved under paragraphs 53 or 54 included, without need for approval— (a) proposals agreed with the FCA under 39 or 40 ; or (b) proposals in respect of which the court has made an order dispensing with the need for agreement in accordance with those regulations. Paragraph 69 Agency Paragraph 70 Floating charge Paragraph 71 Non-floating charge Paragraph 72 Hire purchase property Paragraph 73 Protection for secured or preferential creditors To be read as if sub-paragraph (2)(d) were omitted. Paragraph 74 Challenge to administrator’s conduct To be read as if — (a) there were no amendment made by paragraph 10(24) of Schedule 9 to the SBEEA 2015; (b) the FCA were also empowered to make an application to the court, on the grounds that— (i) the administrator is acting or has acted so as unfairly to harm the interests of some or all of the members, creditors or users or holders; (ii) the administrator is proposing to act in a way which would unfairly harm the interests of some or all of the members, creditors or users or holders; (iii) the administrator has failed to carry out a reconciliation in accordance with regulation 13 ; (c) a user or holder were also empowered to make an application to the court under sub-paragraph (1) or (2); (d) any of the following persons were also empowered to make an application on the grounds that the administrator is not taking any action in response to a request from that person under regulation 35(3) and that the person is of the opinion that the action requested would not lead to a material reduction in the value of the property of the institution— (i) the Bank of England; (ii) the Treasury; (iii) the FCA; (iv) the Payment Systems Regulator; (e) the following persons were also empowered to make an application on the grounds that the administrator has made, or proposes to make, a PPTA in contravention of 32 or 34 — (i) the Bank of England; (ii) the FCA; (f) any person, other than the institution, who is party to an arrangement of a kind referred to in regulation 31(1) were also empowered to make an application on the grounds that the administrator has made, or proposes to make, a relevant transfer in contravention of that regulation; (g) where an application is made on the grounds that the administrator has made a relevant transfer in contravention of regulation 34 — (i) sub-paragraphs (3)(a), (d) and (e) and (4) were omitted; (ii) the court were also empowered to make an order declaring that the transfer was made in contravention of the regulation concerned; (h) where an application is made on the grounds that the administrator has made a relevant transfer in contravention of regulation 32 or 33 , the court were also empowered to make such order as it thinks fit for restoring the position to what it would have been if the transfer had not been made in contravention of the regulation concerned; (i) where the FCA has given a direction under regulation 38 which has not been withdrawn, the court did not have power to make an order if it would impede or prevent compliance with the direction. Paragraph 75 Misfeasance To be read as if a user or holder and the FCA were included in the list of persons who may make an application under sub-paragraph (2). Paragraph 79 Court ending administration on application of administrator To be read as if sub-paragraph (2) were omitted. Paragraph 81 Court ending administration on application of a creditor To be read as if it did not apply where the administrator was appointed by the court on the application of the FCA or the Secretary of State. Paragraph 84 Termination: no more relevant funds for distribution To be read as if— (a) the administrator were only empowered to send a notice under sub-paragraph (1) if the institution no longer holds relevant funds; (b) there were no amendment made by paragraph 10(33) of Schedule 9 to the SBEEA 2015; (c) in sub-paragraph (5)(b), a copy of the notice were also required to be sent be sent to every user or holder of the institution of whom the administrator is aware and the FCA. Paragraph 85 Discharge of administration order Paragraph 86 Notice to Companies Registrar at the end of administration Paragraph 87 Resignation To be read as if — (a) where the administrator was appointed by the court on the application of the FCA or the Secretary of State, the notice of the resignation given in accordance with sub-paragraph (2)(a) were also required to be given to the applicant; (b) sub-paragraphs (2)(b) to (d) were omitted. Paragraph 88 Removal Paragraph 89 Disqualification To be read as if — (a) where the administrator was appointed by the court on the application of the FCA or the Secretary of State, the notice given in accordance with sub-paragraph (2)(a) were also required to be given to the applicant; (b) sub-paragraphs (2)(b) to (d) were omitted. Paragraph 90 Replacement To be read as if reference to paragraphs 91 to 95 were to paragraph 91 only. Paragraph 91 Replacement To be read as if the FCA were included in the list of persons who may make an application to appoint an administrator in sub-paragraph (1) but to whom the restrictions in sub-paragraph (2) apply. Paragraph 98 Discharge To be read as if — (a) there were no amendment made by paragraph 10(38) of Schedule 9 to the SBEEA 2015; (b) sub-paragraphs (2)(b) and (ba) and (3) were omitted. Paragraph 99 Vacation of office: charges and liabilities To be read as if — (a) in sub-paragraph (3), the former administrator’s remuneration and expenses incurred in respect of the pursuit of Objective 1 are to be charged on and payable out of relevant funds; (b) in sub-paragraph (4)(b), the reference to any charge arising under sub-paragraph (3) did not include a charge on relevant funds. Paragraph 100 Joint and concurrent administrators Paragraph 101 Joint and concurrent administrators To be read as if in sub-paragraph (3), the reference to paragraphs 87 to 99 were to paragraphs 87 to 91 and 98 to 99. Paragraph 102 Joint and concurrent administrators Paragraph 103 Joint and concurrent administrators To be read as if — (a) in sub-paragraph (2), the reference to paragraph 12(1)(a) to (e) were to regulation 8(1) ; (b) sub-paragraphs (3) to (5) were omitted. Paragraph 104 Presumption of validity Paragraph 105 Majority decision of directors Paragraph 106 (and section 430 of and Schedule 10 to the IA 1986) Fines To be read as if — (a) there were no amendments made by paragraph 11 of Schedule 9 to the SBEEA 2015; (b) sub-paragraph (2)(a), (b) and (l) to (n) was omitted. Paragraph 107 Extension of time limit To be read as if, in considering an application under paragraph 107, the court were required to have regard to the special administration objectives. Paragraph 108 Extension of time limit To be read as if — (a) there were no amendments made by paragraph 10(39), (40), (42) and (43) of Schedule 9 to the SBEEA 2015; (b) the administrator were also required to obtain consent of those users or holders whose claims amount to more than 50% of the total amount of claims for relevant funds, disregarding the claims of those users or holders who were sent a copy of the statement of proposals but who did not respond to an invitation to give or withhold consent; (c) sub-paragraph (3) were omitted. Paragraph 109 Extension of time limit Paragraph 111 Interpretation To be read as if — (a) there were no amendment made by paragraph 10(44) of Schedule 9 to the SBEEA 2015; (b) the definition of “administrator” and sub-paragraph (1A) and sub-paragraph (1B) were omitted. Paras 112–116 Scotland Application of the I(NI)O 1989 and related insolvency legislation in Northern Ireland 37A 1 The provisions of the IA 1986 and the I(NI)O 1989 mentioned in the first column of the Table apply to special administration as they apply to any other insolvency proceedings, with any modifications shown in the third column. 2 References in the first column of the Table are to provisions in the I(NI)O 1989 unless otherwise stated. 3 Articles 88 to 94 of the Judgments Enforcement (Northern Ireland) Order 1981 apply to special administration as they apply to any other insolvency proceedings as if in Article 88(2)(b)— a in paragraph (i), the words “or of the calling” to “to be proposed” were omitted; b in paragraph (ii), for the words “or of the calling of such a meeting” to the end, there were substituted “but a winding-up order is not at any time made as a result of that petition” . 4 This regulation applies to the special administration of, or in relation to, an institution which is incorporated in, or formed under the law of Northern Ireland. 5 For the purposes of paragraph (4), an institution whose registered office, or in the case of an institution with no registered office, whose principal place of business, is situated in Northern Ireland is to be treated as incorporated in, or formed under, the law of Northern Ireland. 6 This regulation is subject to— a Schedule 1A (which makes provision about how special administration applies to limited liability partnerships), and b Schedule 2A (which makes provision about how special administration applies to partnerships). Provision Subject Modifications Articles Generally (for the provisions of this part of the table mentioned below) To be read as if— references to a provision of the I(NI)O 1989 which is applied and modified by these Regulations were to the provision as applied and modified by these Regulations, references to the liquidator were to the administrator, references to winding up were to special administration, references to winding up by the court were to the imposition of special administration by order of the court, references to being wound up under Part 5 or 6 of the I(NI)O 1989 were to being in special administration, references to the commencement of winding up were to the commencement of special administration, references to going into liquidation were to entering special administration, references to liquidation or to insolvent liquidation were to special administration, references to a winding-up order were to a special administration order, and references to a company were to an institution. Those general modifications are subject to any specific modifications below. Article 13 Definition of contributory Articles 61 and 63 to 69 Contributories Article 142 and Schedule 2 Powers of the liquidator To be read as if— in paragraphs (1) and (2) the references to a liquidation committee were to a creditors’ committee; a user or holder may also apply to the court under paragraph (3); in Schedule 2, paragraphs 4 to 7, 8 to 11 and 13 were omitted and in paragraph 14 the reference to winding up the company’s affairs and distributing its assets were to pursuing the special administration objectives. Article 143(4) Discretion in managing and distributing assets Article 150 Preferential charges on goods distrained Article 150A Unsecured creditors Article 152 Disclaimer of onerous property Article 153 Disclaimer of leaseholds Article 154 Land subject to rent charge Article 155 Disclaimer: powers of High Court (General) Article 156 Powers of High Court (leaseholds) Article 157 Rescission of contracts by the court Article 158 Power to make over assets to employees Article 163 Resolutions passed at adjourned meetings Article 170 Fraud in anticipation of winding up To be read as if in paragraph (1), there were no reference to passing a resolution for voluntary winding up. Article 171 Transactions in fraud of creditors To be read as if in paragraph (1), there were no reference to passing a resolution for voluntary winding up. Article 172 Misconduct in the course of winding up To be read as if in paragraph (1), “whether by the High Court or voluntarily”, were omitted. Article 173 Falsification of company’s books Article 174 Material omissions from statement To be read is if— in paragraph (1) “whether by the High Court or voluntarily”, were omitted; in paragraph (2), “or has passed a resolution for voluntary winding up”, were omitted. Article 175 False representation to creditors To be read is if in paragraph (1)— “whether by the High Court or voluntarily”, were omitted; the reference to the company’s creditors included users or holders. Article 176 Summary remedy Article 177 Fraudulent trading Article 178 Wrongful trading To be read as if paragraph (6) were omitted. Article 179 Proceedings under Articles 177 or 178 Article 180 Restriction on re-use of company names To be read as if— references to the liquidating company were to a company in special administration; paragraphs (7) and (8) were omitted. Article 181 Personal liability for debts following contravention of Article 180 To be read as if paragraph (6) were omitted. Article 182 Prosecution of delinquent officers and members of company To be read is if— in paragraph (2), the first reference to the official receiver were omitted and the second reference were to the Secretary of State; in paragraph (4), the reference to paragraph (3) were to paragraph (2); paragraphs (3), (5) and (6) were omitted. Article 183 Obligations arising under Article 182 To be read as if in paragraph (1), the reference to Article 182(3) were to Article 182(2). Article 197 Utilities Article 197A Further protection of essential supplies Article 198 Getting in the company’s property To be read is if— for paragraph (1) there were substituted— 1 This Article applies where a company enters special administration. ; the references to the office-holder were references to the administrator. Article 199 Co-operation with the administrator To be read as if— paragraphs (1) and (4)(b) to (d) were omitted; the references to the office-holder were references to the administrator. Article 200 Inquiry into company’s dealings To be read is if— for paragraph (1) there were substituted— 1 This Article applies where a company enters special administration. ; the references to the office-holder were references to the administrator. Article 201 Enforcement by the High Court To be read as if the references to the office-holder were references to the administrator. Article 202 Transactions at an undervalue To be read is if— for paragraph (1) there were substituted— 1 This Article applies where a company enters special administration. ; the references to the office-holder were references to the administrator. Article 203 Preferences To be read as if the references to the office-holder were references to the administrator. Article 204 Articles 202 and 203: relevant time To be read as if— in sub-paragraph (2)(a), the reference to being unable to pay debts were to be read in accordance with section 93(4) of the BA 2009 (as applied and modified by the EMR 2011 and the PSR 2017); sub-paragraphs (1)(d) and (3)(a) to (d) were omitted. Article 205 Orders under Articles 202 and 203 To be read as if paragraphs (3A) and (3B) were omitted. Article 206 Extortionate credit transactions Article 207 Avoidance of floating charges To be read as if— in paragraph (3)(c), the references to an administration application and administration order were references to an application for special administration and special administration order respectively; in sub-paragraphs (4)(a) and (b), the reference to being unable to pay its debts were to be read in accordance with section 93(4) of the BA 2009 (as applied and modified by the EMR 2011 and the PSR 2017); subparagraphs (3)(d) and (5)(a) to (c) were omitted. Article 208 Unenforceability of liens To be read as if— for paragraph (1) there were substituted— 1 This Article applies where a company enters special administration. ; the reference to the office-holder were references to the administrator. Article 208ZA Remote attendance at meetings To be read as if references to creditors included users or holders. Article 208ZB Use of websites Article 346 and Schedule 4 to the I(NI)O 1989 (and Schedule 3 to the Pension Schemes (Northern Ireland) Act 1993) Preferential debts Article 347, paragraphs (1) and (3A) “The relevant date” To be read as if the reference to administration were to special administration. Article 348 Offence of acting without being qualified To be read as if— the reference to acting as an insolvency practitioner were to acting as the administrator paragraph (2) were omitted. Articles 349 to 350T Authorisation and regulation of insolvency practitioners To be read as if— in Article 349, references to acting as an insolvency practitioner were to acting as the administrator; in paragraph (2) of that Article, after “authorised” there were inserted “to act as an insolvency practitioner” ; in Articles 349A, 349B(1) and (2), 350O(1)(b) and 350R(3)(b) references to authorisation or permission to act as an insolvency practitioner in relation to (or only in relation to) companies, the reference to companies had effect as a reference to companies without modification by this Table an order under Article 350 had effect in relation to any provision applied for the purposes of special administration; in Articles 350Q(2)(b) and 350S(3)(e) the references to a company had effect as references to a company without modification by this Table. Article 359 Insolvency rules To be read as if, in paragraphs (1C), (2C) and (3), the references to Part 2 of the BA 2009 were a reference to these Regulations. Article 361 Fees orders To be read as if— the references to “ this Order ” includes these Regulations; paragraph (1)(za) and paragraph (2)(b) were omitted; there were no reference to the official receiver; proceedings which would be under the I(NI)O 1989 were under the Payment and Electronic Money Institution Insolvency Regulations 2021. Article 367 Transactions defrauding creditors Articles 368 and 369 Transactions defrauding creditors Article 373 and Schedule 7 Offences by bodies corporate To be read as if, in Article 373(4), there were no provisions of the I(NI)O 1989 listed there except for Articles 170(1), (2) and (5), 171(1), 172(1), 173, 174(1) and 175(1). Article 374 Summary proceedings Article 375 Statements: admissibility Article 376 Judicial notice of court documents Articles 384 to 386 Supplementary provisions Schedule B1 to the I(NI)O 1989 Generally (for the provisions of this part of the table mentioned below) To be read as if— references to a provision of the I(NI)O 1989 which is applied and modified by these Regulations were to the provision as applied and modified by these Regulations, references to the administrator were to the administrator appointed under regulation 7, references to administration were to special administration, references to an administration order were to a special administration order, references to a company were to an institution, and references to the purpose of administration were to the special administration objectives. Those general modifications are subject to any specific modifications below. Paragraph 1 Interpretation To be read as if the definition of “administrator” and sub-paragraph (1A) and sub-paragraph (1B) were omitted. Paragraph 41(1)(a) Dismissal of pending winding up petition Paragraph 43 Moratorium on insolvency proceedings To be read as if sub-paragraphs (4)(a) and (4)(b) were omitted. Paragraph 44 Moratorium on other legal processes Paragraph 45(1), (5) and (7) Interim moratorium To be read as if— subparagraph (7) also included a reference to paragraph 45 not preventing or requiring the permission of the court for an application by the FCA for a special administration order; sub-paragraph (7)(b) to (d) were omitted. Paragraph 46 Publicity Paragraph 47 Announcement of administrator’s appointment To be read as if— in sub-paragraph (3)(a), in addition to obtaining the list of creditors, the administrator were also required to obtain as complete a list as possible of the users or holders of the institution; in sub-paragraph (3)(b), the administrator were also required to send a notice of their appointment to each user or holder of whose claim and address the administrator is aware; where the special administration application has not been made by the FCA, notice of the administrator’s appointment were also required to be sent under sub-paragraph (5) to the FCA; sub-paragraphs (6)(b) and (c) were omitted. Paragraph 48 Statement of company’s affairs To be read as if, in sub-paragraph (2), there were also a reference to including particulars of the relevant funds held by the institution. Paragraph 49 Statement of company’s affairs Paragraph 50 Administrator’s proposals To be read as if— sub-paragraph (2)(b) were omitted; in sub-paragraph (4), the administrator were also required to send a copy of the statement of proposals to every user or holder of whose claim the administrator is aware and who the administrator has a means of contacting, and to the FCA; the administrator were also required to give notice that the statement of proposals is to be provided free of charge to a payment system operator who applies in writing to a specified address. The application of paragraph 50(1) to (3) is subject to regulation 38(6) . Paragraph 51 Creditors’ meeting To be read as if— in sub-paragraph (1), the administrator were also required to summon the users or holders referred to in paragraph 50(4) to the meeting of creditors and to give such users or holders notice under sub-paragraph (1)(b); the FCA were empowered to appoint a person to attend a meeting of creditors and make representations as to any matter for decision. Paragraph 52 Requirement for initial creditors’ meeting To be read as if— there were a requirement that each copy of an administrator’s proposals sent to a user or holder or the FCA under paragraph 50 be accompanied by an invitation to the initial creditor’s meeting; the application of paragraph 52 is subject to regulation 38(6) . Paragraph 54 Business and result of initial creditors’ meeting To be read as if— there were a requirement that special administration insolvency rules prescribe how users or holders are to vote at meetings of creditors; in sub-paragraph (2), if the FCA has not appointed a person to attend the meeting, the administrator were also required to report any decision taken to the FCA. The application of paragraph 54 is subject to regulation 38(6) . Paragraph 55 Revision of administrator’s proposals To be read as if— if the revision proposed by the administrator affects both creditors and users or holders, every reference to creditors included users or holders; if the administrator thinks that the revision proposed only affects either creditors or users or holders, it only applied to the affected party and required the party not affected to be informed of the revision; the FCA were required to be invited to the creditors’ meeting mentioned in sub-paragraph (2)(a); the statement of the proposed revision mentioned in sub-paragraph (2)(b) were also required to be sent to the FCA. The application of paragraph 55 is subject to regulation 38(6) . Paragraph 56 Failure to obtain approval of administrator’s proposals To be read as if— in making an order under sub-paragraph (2) the court were required to have regard to the special administration objectives; sub-paragraph (2)(d) were omitted. The application of paragraph 56 is subject to regulation 38(6) . Paragraph 57 Further creditors’ meetings To be read as if the administrator were required to invite the FCA to any meeting summoned. Paragraph 58 Creditors’ committee To be read as if— a creditors’ committee were only able to be established by a creditors’ meeting to which creditors and users or holders have both been given notice; the FCA were empowered to appoint a person to attend a meeting of the creditors’ committee and make representations as to any matter for decision; there were a requirement that special administration insolvency rules prescribe that, where a meeting of creditors resolves to establish a creditors’ committee, the makeup of the creditors’ committee is a reflection of all parties with an interest in the achievement of the special administration objectives. Paragraph 59 Correspondence instead of creditor’s meeting Paragraph 60 Functions of an administrator To be read as if— in sub-paragraph (1), the administrator’s power were to do anything necessary or expedient in pursuit of Objectives 1 to 3; in sub-paragraph (2), the reference to a provision of the Schedule expressly permitting the administrator to do a specified thing included a provision of these Regulations expressly permitting the administrator to do a specified thing; at the end there were inserted— 4 The administrator is an officer of the court. . Paragraph 61 (and Schedule 1) General powers Paragraph 62 Directors Paragraph 63 Power to call meetings To be read as if the administrator were also empowered to call a meeting of users or holders or contributories. Paragraph 64 Application to court for directions Paragraph 65 Management powers Paragraph 66 Distribution to creditors To be read as if— in paragraph (1)— the words from the beginning to “in full,” were omitted; for “any other creditor” there were substituted “any creditor” ; sub-paragraph (3) were omitted. Paragraph 67 Payments To be read as if the words from the beginning to “have been met,” were omitted. Paragraph 68 Property Paragraph 69 Management To be read as if references to proposals approved under paragraphs 54 or 55 included, without need for approval— proposals agreed with the FCA under regulations 39 or 40 ; or proposals in respect of which the court has made an order dispensing with the need for agreement in accordance with those regulations. Paragraph 70 Agency Paragraph 71 Floating charge Paragraph 72 Non-floating charge Paragraph 73 Hire purchase property Paragraph 74 Protection for secured or preferential creditors To be read as if sub-paragraph (2)(d) were omitted. Paragraph 75 Challenge to administrator’s conduct To be read as if— the FCA were also empowered to make an application to the court, on the grounds that— the administrator is acting or has acted so as unfairly to harm the interests of some or all of the members, creditors or users or holders; the administrator is proposing to act in a way which would unfairly harm the interests of some or all of the members, creditors or users or holders; the administrator has failed to carry out a reconciliation in accordance with regulation 13 ; a user or holder were also empowered to make an application to the court under sub-paragraph (1) or (2); any of the following persons were also empowered to make an application on the grounds that the administrator is not taking any action in response to a request from that person under regulation 35(3) and that the person is of the opinion that the action requested would not lead to a material reduction in the value of the property of the institution— the Bank of England; the Treasury; the FCA; the Payment Systems Regulator; the following persons were also empowered to make an application on the grounds that the administrator has made, or proposes to make, a PPTA in contravention of regulation 32 or 34 — the Bank of England; the FCA; any person, other than the institution, who is party to an arrangement of a kind referred to in regulation 31(1) were also empowered to make an application on the grounds that the administrator has made, or proposes to make, a relevant transfer in contravention of that regulation; where an application is made on the grounds that the administrator has made a relevant transfer in contravention of regulation 34 — sub-paragraphs (3)(a), (d) and (e) and (4) were omitted; the court were also empowered to make an order declaring that the transfer was made in contravention of the regulation concerned where an application is made on the grounds that the administrator has made a relevant transfer in contravention of regulation 32 or 33 , the court were also empowered to make such order as it thinks fit for restoring the position to what it would have been if the transfer had not been made in contravention of the regulation concerned; where the FCA has given a direction under regulation 38 which has not been withdrawn, the court did not have power to make an order if it would impede or prevent compliance with the direction. Paragraph 76 Misfeasance To be read as if a user or holder and the FCA were included in the list of persons who may make an application under sub-paragraph (2). Paragraph 80 Court ending administration on application of administrator To be read as if sub-paragraph (2) were omitted. Paragraph 82 Court ending administration on application of a creditor To be read as if it did not apply where the administrator was appointed by the court on the application of the FCA or the Secretary of State. Paragraph 85 Termination: no more relevant funds for distribution To be read as if— the administrator were only empowered to send a notice under sub-paragraph (1) if the institution no longer holds relevant funds; in sub-paragraph (5)(b), a copy of the notice were also required to be sent be sent to every user or holder of the institution of whom the administrator is aware and the FCA. Paragraph 86 Discharge of administration order Paragraph 87 Notice to Companies Registrar at the end of administration Paragraph 88 Resignation To be read as if— where the administrator was appointed by the court on the application of the FCA or the Secretary of State, the notice of the resignation given in accordance with sub-paragraph (2)(a) were also required to be given to the applicant; sub-paragraph (2)(b) to (d) were omitted Paragraph 89 Removal Paragraph 90 Disqualification To be read as if— where the administrator was appointed by the court on the application of the FCA or the Secretary of State, the notice given in accordance with sub-paragraph (2)(a) were also required to be given to the applicant; sub-paragraphs (2)(b) to (d) were omitted. Paragraph 91 Replacement To be read as if the reference to paragraphs 92 to 96 were to paragraph 92 only. Paragraph 92 Replacement To be read as if the FCA were included in the list of persons who may make an application to appoint an administrator in reliance on sub-paragraph (1) but to whom the restrictions in sub-paragraph (2) apply. Paragraph 99 Discharge To be read as if sub-paragraphs (2)(b) and (3) were omitted. Paragraph 100 Vacation of office: charges and liabilities To be read as if— in sub-paragraph (3), the former administrator’s remuneration and expenses incurred in respect of the pursuit of Objective 1 are to be charged on and payable out of relevant funds; in sub-paragraph (4)(b), the reference to any charge arising under sub-paragraph (3) did not include a charge on relevant funds. Paragraph 101 Joint and concurrent administrators Paragraph 102 Joint and concurrent administrators To be read as if in sub-paragraph (3), the reference to paragraphs 88 to 100 were to paragraphs 88 to 92 and 99 to 100. Paragraph 103 Joint and concurrent administrators Paragraph 104 Joint and concurrent administrators To be read as if— in sub-paragraph (2), the reference to paragraph 13(1)(a) to (f) were to regulation 8(1) ; sub-paragraphs (3) to (5) were omitted. Paragraph 105 Presumption of validity Paragraph 106 Majority decision of directors Paragraph 107 (and Article 373 and Schedule 7) Fines To be read as if sub-paragraph (2)(a), (b) and (l) to (n) was omitted. Paragraph 108 Extension of time limit To be read as if, in considering an application under paragraph 108, the court were required to have regard to the special administration objectives. Paragraph 109 Extension of time limit To be read as if— the administrator were also required to obtain consent of those users or holders whose claims amount to more than 50% of the total amount of claims for relevant funds, disregarding the claims of those users or holders who were sent a copy of the statement of proposals but who did not respond to an invitation to give or withhold consent; sub-paragraph (3) were omitted. Paragraph 110 Extension of time limit Sections of the IA 1986 Section 197 of the IA 1986 Commission for receiving evidence Section 426 of the IA 1986 Co-operation between courts To be read as if references to insolvency law included provisions made by or under these Regulations. FCA direction 38 1 The FCA may direct the administrator to prioritise one or more special administration objectives, subject as follows. 2 A direction may only be given if the FCA is satisfied that the giving of the direction is necessary, having regard to the public interest in— a the stability of the financial systems of the United Kingdom, b the maintenance of public confidence in the stability of the financial markets, payment systems and payment services and electronic money sectors of the United Kingdom, or c securing an appropriate degree of protection for users or holders. 3 A direction must be given in writing and should set out reasons for giving the direction. 4 Before giving a direction the FCA must consult the Treasury and the Bank of England. 5 If the FCA thinks that the circumstances that gave rise to the need for it to give a direction have passed, it must withdraw its direction. 6 Where the FCA has given a direction under this regulation and the direction has not been withdrawn, the following provisions do not apply— a in England and Wales and Scotland, paragraphs 49(1) to (3), 51, 53, 54 and 55 of Schedule B1 to the IA 1986; b in Northern Ireland, paragraphs 50(1) to (3), 52, 54, 55 and 56 of Schedule B1 to the I(NI)O 1989. Administrator’s proposals in the event of FCA direction 39 1 Where the FCA has given a direction under regulation 38 , the administrator must make a statement setting out proposals for achieving the special administration objectives in accordance with the direction. 2 The statement must deal with any matters set out in special administration insolvency rules and may include— a a proposal for a voluntary arrangement under Part 1 of the IA 1986 or, as the case may be, Part 2 of the I(NI)O 1989 , or b a proposal for a compromise or arrangement to be sanctioned under Part 26 or Part 26A of the CA 2006 (arrangements and reconstructions). 3 The statement must be agreed with the FCA. 4 If the administrator is unable to agree the statement with the FCA, the administrator may apply to the court for directions under paragraph 63 of Schedule B1 to the IA 1986 or, as the case may be, paragraph 64 of Schedule B1 to the I(NI)O 1989 . 5 Following an application under sub-paragraph (4), the court may— a make an order dispensing with the need for agreement, b adjourn the hearing conditionally or unconditionally, or c make any other order that the court thinks appropriate. 6 But the court may make an order under sub-paragraph (5)(a) only if it considers that the proposals set out in the statement are reasonably likely to ensure that the administrator acts in accordance with the direction. 7 Where the court makes an order, the administrator must as soon as possible send a copy of the order to the registrar of companies. 8 After— a the statement has been agreed with the FCA; or b the court has made an order dispensing with the need for agreement, paragraph 49(4) to (8) of Schedule B1 to the IA 1986 or, as the case may be, paragraph 50(4) to (8) of Schedule B1 to the I(NI)O 1989 applies to the statement (though the administrator need not send the FCA a copy of the statement of proposals). 9 Paragraph (10) applies where, before the FCA gives its direction under regulation 38, a meeting of creditors has approved the statement of proposals in accordance with paragraph 53 of Schedule B1 to the IA 1986 or paragraph 54 of Schedule B1 to the I(NI)O 1989. 10 The statement of proposals must be ignored for the purposes of regulation 38, this regulation and paragraph 68 of Schedule B1 to the IA 1986 or (as the case may be) paragraph 69 of Schedule B1 to the I(NI)O 1989. 11 References in this regulation to a numbered paragraph of Schedule B1 to the IA 1986 or to the I(NI)O 1989 are to that paragraph as applied and modified by these Regulations. Revision of proposals in the event of FCA direction 40 1 This regulation applies where— a the administrator’s statement of proposals under regulation 39 has been agreed with FCA (or the court has made an order dispensing with the need for agreement), b the administrator proposes a revision to the proposals, c the administrator thinks the revision is substantial, and d the FCA has not withdrawn its direction given under regulation 38 . 2 The administrator must agree the revised statement with the FCA. 3 Regulation 39(4) to (7) applies where the administrator is unable to agree the revised statement with the FCA. 4 After the revised statement has been agreed with the FCA (or the court has made an order dispensing with the need for agreement) the administrator must send the revised statement to— a every creditor of the institution of whose claim and address the administrator is aware, b every user or holder of whose claim the administrator is aware and who the administrator has a means of contacting, and c every member of the institution of whose address the administrator is aware. 5 The administrator is to be taken to have complied with paragraph (4)(c) if the administrator publishes a notice undertaking to provide a copy of the revised statement free of charge to any member of the institution who applies in writing to a specified address. 6 A notice under paragraph (5) must be published. 7 The administrator must send a copy of the revised statement to— a the court, and b the registrar of companies. FCA direction withdrawn 41 1 This regulation applies if, after the administrator’s statement of proposals has been agreed with FCA or the court has made an order dispensing with the need for agreement under regulation 39 , the direction is then withdrawn. 2 If the administrator proposes a revision to the statement of proposals and the administrator thinks that the proposed revision is substantial, then paragraphs 54 and 55 of Schedule B1 to the IA 1986 or, as the case may be, paragraphs 55 and 56 of Schedule B1 to the I(NI)O 1989, apply (as modified by these Regulations). Safeguarding failures: costs of the administration 42 1 Where the administrator considers that failure-related costs have been incurred in consequence of a failure by the institution to safeguard relevant funds (“a default”), the administrator— a must seek the agreement of the creditors’ committee established under paragraph 57 of Schedule B1 to the IA 1986 or, as the case may be, paragraph 58 of Schedule B1 to the I(NI)O 1989, as applied and modified by these Regulations to the amount incurred in consequence of the default, or b if there is no creditors’ committee or the administrator is unable to agree that amount with the creditors’ committee, must apply to the court for an order fixing the amount. 2 In paragraph (1) “failure” includes where— a a small payment institution, or b in the case of funds received for the execution of payment transactions that are not related to the issuance of electronic money, a small electronic money institution, held itself out to be one which voluntarily safeguarded relevant funds but failed to do so. 3 On an application under paragraph (1)(b), the court may fix the amount incurred in consequence of the default or dismiss the application on the ground that there was no default or that no failure-related costs have been incurred in consequence of the default. 4 Paragraph (5) applies where the creditors’ committee agree an amount incurred in consequence of the default or the court fixes an amount by order. 5 Responsibility for the failure-related costs amount is assigned to the institution and the amount is to be paid out of the institution’s assets. 6 Where the institution’s assets are insufficient to enable the failure-related costs amount to be met out of those assets, paragraph (5) has effect only in relation to that part of the amount which can be met out of those assets. 7 In this regulation— “failure-related costs” means costs incurred by the administrator in applying the procedure set out in Schedule B1 as applied and modified by these Regulations for ascertaining particulars of the relevant funds held by the institution, and in taking custody and control of and distributing those funds; “failure-related costs amount” means the amount of failure-related costs incurred in consequence of the default as agreed by the creditors’ committee or fixed by the court. Successful rescue 43 1 This regulation applies if the administrator has— a in pursuit of Objective 3, pursued the rescue of the institution as a going concern, and b thinks that this has been sufficiently achieved. 2 The administrator must make an application in accordance with paragraph 79 of Schedule B1 to the IA 1986 or, as the case may be, paragraph 80 of Schedule B1 to the I(NI)O 1989, as applied and modified by these Regulations. 3 An administrator who makes an application referred to in paragraph (2) must send a copy to the FCA. Dissolution or voluntary arrangement 44 1 This regulation applies if the administrator— a believes that Objectives 1 and 2 have been sufficiently achieved, and b in pursuit of Objective 3, pursues the winding up of the institution in the best interests of the creditors. 2 The administrator may— a give a notice in accordance with paragraph 84 of Schedule B1 to the IA 1986 or, as the case may be, paragraph 85 of Schedule B1 to the I(NI)O 1989 as applied and modified by these Regulations; or b make a proposal in accordance with Part 1 of the IA 1986 or, as the case may be, Part 2 of the I(NI)O 1989 (company voluntary arrangement). 3 The following provisions apply to a proposal made by an administrator— a Part 1 of the IA 1986, with the modifications set out in paragraphs (4) to (6), (7) and (8), or b Part 2 of the I(NI)O 1989, with the modifications set out in paragraphs (6A) to (8). 4 Section 3 (consideration of proposals) is to be read as if subsection (2) (and not subsection (1)) applies. 5 Section 5(3) (effect of approval) is to be read as if the action that may be taken by a court includes suspension of the special administration order. 6 Sections 2 to 6 and 7 have effect without the amendments of those provisions made by paragraphs 2 to 8 of Schedule 9 to the SBEEA 2015 (company voluntary arrangements). 6A Article 16 (summoning of meetings) is to be read as if paragraph (2) (and not paragraph (1)) applies. 6B Article 18(3) (effect of approval) is to be read as if the action which may be taken by the court includes suspension of the special administration order. 7 On the termination of a company voluntary arrangement the administrator may apply to the court to lift the suspension of the special administration order. 8 For the purposes of this regulation, references in Part 1 of the IA 1986 and Part 2 of the I(NI)O 1989 to administration include special administration. Special administration order as an alternative order 45 1 On the following the court may instead make a special administration order— a a petition for a winding-up order, b an application for a Schedule B1 administration order, or c an application for an order under regulation 5 of IBSAR 2011. 2 But a special administration order may be made under paragraph (1) only on the application of the FCA. Disqualification of directors : Great Britain 46 1 Where a special administration order is made under these Regulations in relation to an institution that is incorporated in, or formed under the law of, England and Wales or Scotland, the CDDA 1986 applies with the following modifications. 1A For the purposes of paragraph (1), an institution whose registered office, or in the case of an institution with no registered office, whose principal place of business, is situated in England and Wales or Scotland is to be treated as incorporated in, or formed under, the law of England and Wales or Scotland, as the case may be. 2 The CDDA 1986 is to be read as if— a references to a provision of the IA 1986 which is applied and modified by these Regulations were to the provision as applied and modified by these Regulations, b references to liquidation include special administration; c references to the winding up of a company include an institution being subject to a special administration order, d references to becoming insolvent include becoming subject to a special administration order, and e references to a liquidator include an administrator. 3 Section 6 is to be read as if subsection (2) were omitted. 4 Section 7A is to be read as if— a the reference to the office-holder were to the administrator, b the reference to insolvency date were to the date on which the special administration order is made, and c subsections (9) to (11) were omitted. 5 This regulation is subject to paragraph 7 of Schedule 2. Disqualification of directors: Northern Ireland 46A 1 Where a special administration order is made under these Regulations in relation to an institution that is incorporated in, or formed under the law of, Northern Ireland, the CDD(NI)O 2002 applies with the following modifications. 2 For the purposes of paragraph (1), an institution whose registered office, or in the case of an institution with no registered office, whose principal place of business, is situated in Northern Ireland is to be treated as incorporated in, or formed under, the law of Northern Ireland. 3 The CDD(NI)O 2002 is to be read as if— a references to a provision of the I(NI)O 1989 which is applied and modified by these Regulations were to the provision as applied and modified by these Regulations; b references to liquidation include special administration; c references to the winding up of a company include an institution being subject to a special administration order; d references to becoming insolvent include becoming subject to a special administration order; e references to a liquidator include an administrator. 3 Article 9 is to be read as if paragraph (2) were omitted. 4 Article 10A is to be read is if— a the reference to the office-holder were to the administrator; b the reference to the insolvency date were to the date on which the special administration order is made; c paragraphs (9) to (11) were omitted. 5 This regulation is subject to paragraphs 3 and 7 of Schedule 2A. Further provision on special administration: schedules 47 1 Schedule 1 makes further provision about how special administration applies to limited liability partnerships formed under the law of England and Wales or the law of Scotland . 1A Schedule 1A makes further provision about how special administration applies to limited liability partnerships formed under the law of Northern Ireland. 2 Schedule 2 makes further provision about how special administration applies to partnerships formed under the law of England and Wales. 2A Schedule 2A makes further provision about how special administration applies to partnerships formed under the law of Northern Ireland. 3 Schedule 3 makes further provision about how certain other legislation applies to companies in special administration. 4 Schedule 4 contains consequential amendments. FSMA 2000, Pt 24: application to payment and electronic money institution insolvency except special administration 48 1 In the PSR 2017, in Schedule 6, for paragraph 9 substitute— 9 The sections of the 2000 Act mentioned in the first column of the Table apply with any modifications shown in the third column. Section Subject Modifications Generally (for the sections mentioned below) To be read as if— (a) references to an authorised person or recognised investment exchange were to an authorised payment institution or a small payment institution; (b) references to the appropriate regulator, or to the regulator or a regulator, were to the FCA; (c) references to creditors included users. Section 356 Powers of FCA to participate in proceedings: company voluntary arrangements To be read as if subsections (4) and (5) were omitted. Section 357 Powers of FCA to participate in proceedings: individual voluntary arrangements To be read as if subsections (7) and (8) were omitted. Section 358 Powers of FCA to participate in proceedings: trust deeds for creditors in Scotland To be read as if subsection (6A) were omitted. Section 359 Administration order To be read as if— (a) subsection (1)(b) were omitted; (b) subsection (1)(c) were substituted with— “(c) is providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017.”; (c) subsection (1A) were omitted; (d) in subsection (3)(a), the reference to an agreement were to a contract for payment services; (e) subsection (3)(b) and (c) were omitted; (f) in subsection (4), the definitions of “agreement, “authorised deposit taker”, “authorised reclaim fund” and “relevant deposit” were omitted; (g) subsection (5) were omitted. Section 361 Administrators’ duty to report to FCA To be read as if— (a) in subsection (2)(a) the reference to the general prohibition were to regulation 138(1) of the Payment Services Regulations 2017; (b) subsection (2)(b) were omitted; (c) subsection (2A) were omitted; (d) in subsection (3)(b) the reference to the general prohibition were to regulation 138(1) of the Payment Services Regulations 2017. Section 362 Powers of FCA to participate in proceedings To be read as if— (a) subsection (1)(b) were omitted; (b) subsection (1)(c) were substituted with— “(c) is providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017.”; (c) subsections (7) and (8) were omitted. Section 362A Administrator appointed by company or directors To be read as if subsection (2B) were omitted. Section 363 Receivership: powers of FCA to participate in proceedings To be read as if— (a) subsection (1)(b) were omitted; (b) subsection (1)(c) were substituted with— “(c) is providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017.”; (c) subsection (6) were omitted. Section 364 Receiver’s duty to report to FCA To be read as if— (a) in subsection (b), for the words from “carrying” to the end there were substituted “providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017,”; (b) in the words after subsection (b), the words from “and,” to the end were omitted. Section 365 Voluntary winding up: powers of FCA to participate in proceedings To be read as if subsection (8) were omitted. Section 367 Winding-up petitions To be read as if— (a) subsection (1)(b) were omitted; (b) subsection (1)(c) were substituted with— “(c) is providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017.”; (c) subsection (1A) were omitted; (d) in subsection (4) for “an agreement” there were substituted “a contract for payment services”; (e) subsection (5) were omitted. Section 370 Liquidator’s duty to report to FCA To be read as if — (a) in subsection (1)(b)(ii), for the words from “carrying” to the end there were substituted “providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017,”; (b) in the words after subsection (1)(b), the words from “and,” to the end were omitted; (c) in subsection (2)(b), the reference to the general prohibition were to regulation 138(1) of the Payment Services Regulations 2017. Section 371 Winding up: powers of FCA to participate in proceedings To be read as if — (a) subsection (1)(b) were omitted; (b) subsection (1)(c) were substituted with— “(c) is providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017.”; (c) subsections (6) and (7) were omitted. Section 372 Bankruptcy: Petitions To be read as if — (a) subsection (1A) were omitted; (b) in subsections (3) and (4), the reference to an agreement, in both places it occurs, were to a contract for payment services; (c) in subsections (2) and (6) the reference to subsection (1A), in each place it occurs, were omitted; (d) in subsection (7)(b), for the words from “carrying” to the end there were substituted “providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017.”; (e) subsection (8) were omitted. Section 373 Bankruptcy: insolvency practitioner’s duty to report to FCA To be read as if — (a) in subsection (1)(b), for the words from “carrying” to the end there were substituted “providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017,”; (b) in the words after subsection (1)(b)(ii), the words from “and,” to the end were omitted; (c) in subsection (1A)(b), the reference to the general prohibition were to regulation 138(1) of the Payment Services Regulations 2017. Section 374 Bankruptcy: powers of FCA to participate in proceedings To be read as if — (a) in subsection (5)(b), for the words from “carrying” to the end there were substituted “providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017.”; (b) in subsection (6)(b), for the words from “carrying” to the end there were substituted “providing or has provided payment services in contravention of regulation 138(1) of the Payment Services Regulations 2017.”; (c) subsections (7) and (8) were omitted. Section 375 Provisions against debt avoidance: right of FCA to apply for an order To be read as if— (a) in subsection (1)(a), for the words from “carrying” to the end there were substituted “providing payment services (whether or not in contravention of regulation 138 (1) of the Payment Services Regulations 2017);”; (b) in subsection (1)(b) the reference to a regulated activity carried on were to payment services being provided; (c) subsection (1A) were omitted; (d) in subsection (2) “or subsection (1A)(b) (as the case may be)” were omitted. . 2 In the Electronic Money Regulations 2011, in Schedule 3, for paragraph 7 substitute— 7 The sections of the 2000 Act mentioned in the first column of the Table apply with any modifications shown in the third column. Section Subject Modifications Generally (for the sections mentioned below) To be read as if— (a) references to an authorised person or recognised investment exchange were to an electronic money institution; (b) references to the appropriate regulator, or to the regulator or a regulator, were to the FCA; (c) references to creditors included users or holders. Section 356 Powers of FCA to participate in proceedings: company voluntary arrangements To be read as if subsections (4) and (5) were omitted. Section 357 Powers of FCA to participate in proceedings: individual voluntary arrangements To be read as if subsections (7) and (8) were omitted. Section 358 Powers of FCA to participate in proceedings: trust deeds for creditors in Scotland To be read as if subsection (6A) were omitted. Section 359 Administration order To be read as if— (a) subsection (1)(b) were omitted; (b) subsection (1)(c) were substituted with— “(c) is issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011.”; (c) subsection (1A) were omitted; (d) in subsection (3)(a), the reference to an agreement were to a contract for electronic money issuance or payment services; (e) subsection (3)(b) and (c) were omitted; (f) in subsection (4) the definitions of “agreement, “authorised deposit taker”, “authorised reclaim fund” and “relevant deposit” were omitted; (g) subsection (5) were omitted. Section 361 Administrators duty to report to FCA To be read as if— (a) in subsection (2)(a) the reference to the general prohibition were to regulation 63(1) of the Electronic Money Regulations 2011; (b) subsection (2)(b) were omitted; (c) subsection (2A) were omitted; (d) in subsection (3)(b) the reference to the general prohibition were to regulation 63(1) of the Electronic Money Regulations 2011. Section 362 Powers of FCA to participate in proceedings To be read as if— (a) subsection (1)(b) were omitted; (b) subsection (1)(c) were substituted with— “(c) is issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011.”; (c) subsections (7) and (8) were omitted. Section 362A Administrator appointed by company or directors To be read as if subsection (2B) were omitted. Section 363 Receivership: powers of FCA to participate in proceedings To be read as if— (a) subsection (1)(b) were omitted; (b) subsection (1)(c) were substituted with— “(c) is issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011.”; (c) subsection (6) were omitted. Section 364 Receiver’s duty to report to FCA To be read as if— (a) in subsection (b), for the words from “carrying” to the end there were substituted “issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011,”; (b) in the words after subsection (b), the words from “and,” to the end were omitted. Section 365 Voluntary winding up: powers of FCA to participate in proceedings To be read as if subsection (8) were omitted. Section 367 Winding-up petitions To be read as if— (a) subsection (1)(b) were omitted; (b) subsection (1)(c) were substituted with— “(c) is issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011.”; (c) subsection (1A) were omitted; (d) in subsection (4) for “an agreement” there were substituted “a contract for electronic money issuance or payment services”; (e) subsection (5) were omitted. Section 370 Liquidator’s duty to report to FCA To be read as if — (a) in subsection (1)(b), for the words from “carrying” to the end there were substituted “issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011,”; (b) in the words after subsection (1)(b), the words from “and,” to the end were omitted; (c) in subsection (2)(b), the reference to the general prohibition were to regulation 63(1) of the Electronic Money Regulations 2011. Section 371 Winding up: powers of FCA to participate in proceedings To be read as if — (a) subsection (1)(b) were omitted; (b) subsection (1)(c) were substituted with— “(c) is issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011.”; (c) subsections (6) and (7) were omitted. Section 372 Bankruptcy: Petitions To be read as if — (a) subsection (1A) were omitted; (b) in subsections (3) and (4), the reference to agreement, in both places it occurs, were to a contract for electronic money issuance or payment services; (c) in subsections (2) and (6) the reference to subsection (1A), in each place it occurs, were omitted; (d) in subsection (7)(b), for the words from “carrying” to the end there were substituted “issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011.”; (e) subsection (8) were omitted. Section 373 Bankruptcy: insolvency practitioner’s duty to report to FCA To be read as if — (a) in subsection (1)(b), for the words from “carrying” to the end there were substituted “issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011,”; (b) in the words after subsection (1)(b), the words from “and,” to the end were omitted; (c) in subsection (1A)(b), the reference to the general prohibition were to regulation 63(1) of the Electronic Money Regulations 2011. Section 374 Bankruptcy: powers of FCA to participate in proceedings To be read as if — (a) in subsection (5)(b), for the words from “carrying” to the end there were substituted “issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011.”; (b) in subsection (6)(b), for the words from “carrying” to the end there were substituted “issuing or has issued electronic money in contravention of regulation 63(1) of the Electronic Money Regulations 2011.”; (c) subsections (7) and (8) were omitted. Section 375 Provisions against debt avoidance: right of FCA to apply for an order To be read as if— (a) in subsection (1)(a), for the words from “carrying” to the end there were substituted “issuing electronic money (whether or not in contravention of regulation 63(1) of the Electronic Money Regulations 2011);”; (b) in subsection (1)(b), the reference to a regulated activity carried on were to electronic money issuance services being provided; (c) subsection (1A) were omitted; (d) in subsection (2), “or subsection (1A)(b) (as the case may be)” were omitted. . Correction of defect in instrument relating to the UK’s withdrawal from the EU and bank recovery and resolution 49 1 In the Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 , in Schedule 1, in paragraph 42, omit sub-paragraph (4). 2 In consequence of the amendment made by paragraph (1), in the Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 , in regulation 76, omit paragraph (4). Alan Mak Maggie Throup Two of the Lords Commissioners of Her Majesty’s Treasury 17th June 2021