The Financial Markets and Insolvency (Settlement Finality) Regulations 1999

Adjustment of prior transactions

17.—(1) No order shall be made in relation to a transaction to which this regulation applies under—

(a) section 238 or 339 of the Insolvency Act 1986 (transactions at an undervalue);

(b) section 239 or 340 of that Act (preferences); or

(c) section 423 of that Act (transactions defrauding creditors).

(2) As respects Scotland, no decree shall be granted in relation to any such transaction—

(a) under section 34 or 36 of the Bankruptcy (Scotland) Act 1985 or section 242 or 243 of the Insolvency Act 1986 (gratuitous alienations and unfair preferences); or

(b) at common law on grounds of gratuitous alienations or fraudulent preferences.

(3) This regulation applies to—

(a) a transfer order, or any disposition of property in pursuance of such an order;

(b) the provision of collateral security;

(c) a contract for the purpose of realising collateral security or any disposition of property in pursuance of such a contract; or

(d) any disposition of property in accordance with the rules of a designated system as to the application of collateral security.