Banking Act 2009

233 Insolvency regulations

(1) The Treasury may by regulations (“investment bank insolvency regulations”)—

(a) modify the law of insolvency in its application to investment banks;

(b) establish a new procedure for investment banks where—

(i) they are unable, or are likely to become unable, to pay their debts (within the meaning of section 93(4)), or

(ii) their winding up would be fair (within the meaning of section 93(8)).

(2) Investment bank insolvency regulations may, in particular—

(a) apply or replicate (with or without modifications) or make provision similar to provision made by or under the Insolvency Act 1986 or Part 2 or 3 of this Act;

(b) establish a new procedure either (i) to operate for investment banks in place of liquidation or administration (under the Insolvency Act 1986), or (ii) to operate alongside liquidation or administration in respect of a particular part of the business or affairs of investment banks.

(3) In making investment bank insolvency regulations the Treasury shall have regard to the desirability of—

(a) identifying, protecting, and facilitating the return of, client assets,

(b) protecting creditors' rights,

(c) ensuring certainty for investment banks, creditors, clients, liquidators and administrators,

(d) minimising the disruption of business and markets, and

(e) maximising the efficiency and effectiveness of the financial services industry in the United Kingdom.

(4) A reference to returning client assets includes a reference to—

(a) transferring assets to another institution, and

(b) returning or transferring assets equivalent to those which an institution undertook to hold for clients.