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The Investment Bank Special Administration (Scotland) Rules 2011

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CHAPTER 3Application for a special administration (bank administration) order

Application for a special administration (bank administration) order

23.—(1) An application by the Bank of England for a special administration (bank administration) order in respect of an investment bank must specify—

(a)the full name of the investment bank;

(b)any other trading names of the investment bank;

(c)the address of the investment bank’s registered office;

(d)an email address for the investment bank;

(e)the address of the Bank of England; and

(f)the identity of the person (or persons) nominated for appointment as administrator.

(2) If the investment bank has notified the Bank of England of an address for service which is, because of special circumstances, to be used in place of the registered office, that address shall be specified under paragraph (1)(c).

Statement of proposed administrator

24.  An application must be accompanied by a statement by the proposed administrator—

(a)specifying the name and address of the person proposed (or each person) to be appointed;

(b)giving that person’s (or each person’s) consent to act;

(c)giving details of that person’s (or each person’s) qualification to act as an insolvency practitioner; and

(d)giving details of any prior professional relationship that person (or any of them) has had with the investment bank.

Lodging

25.  The application, and its accompanying documents, must be lodged with the court.

Service

26.—(1) The Bank of England shall serve the application—

(a)on the FSA;

(b)on the investment bank;

(c)on the person (or each of the persons) nominated for appointment as administrator;

(d)on any person who has given notice to the FSA in respect of the investment bank under section 120 of the 2009 Act (bank insolvency: notice of preliminary steps of other insolvency procedures);

(e)if a property transfer instrument was made or is to be made under section 11(2)(b) of the 2009 Act (transfer to commercial purchaser), on each transferee as referred to in that instrument;

(f)on the registrar of companies; and

(g)on the Keeper of the Register of Inhibitions and Adjudications for recording in that register.

(2) Service must be effected as soon as reasonably practicable, having regard in particular to the need to give the investment bank’s representatives a reasonable opportunity to attend the hearing of the application.

Expenses

27.  If the court makes a special administration (bank administration) order, the following are payable as an expense of the special administration—

(a)the Bank of England’s expenses of making the application; and

(b)any other expenses allowed by the court.

Notice of order

28.  If the court makes a special administration (bank administration) order, the Bank of England shall immediately after the order is made, send a certified copy of the order to—

(a)the administrator;

(b)the FSA; and

(c)the FSCS.

Remuneration of the administrator

29.  As soon as practicable after the making of a special administration (bank administration) order, the Bank of England shall fix the terms on which, in accordance with rule 135, the administrator is to be remunerated in respect of—

(a)work done by the administrator in pursuit of Objective A;

(b)work done by the administrator in pursuit of Objectives 2 and 3 of the special administration objectives.

Appointment of person under section 135 of the 1986 Act

30.  An application to the court for the appointment of a person under section 135 of the 1986 Act (as applied by Table 2 in section 145(6) of the 2009 Act(1) and by paragraph 6 of Schedule 2 to the Regulations) may be made by the Bank of England.

Order of appointment

31.—(1) The order of appointment of a person appointed under rule 30 shall specify the functions to be carried out by that person in relation to the investment bank’s affairs.

(2) The Bank of England shall, immediately after the order is made, send a certified copy of the order to—

(a)the person appointed;

(b)the FSA; and

(c)the FSCS,

and may also send to those persons an electronic copy of the certified copy of the order.

(3) Immediately after the order of appointment is made, the person appointed shall—

(a)serve a certified copy of the order on the investment bank and each director of the investment bank;

(b)give notice of the appointment to—

(i)the registrar of companies; and

(ii)if there is in force for the investment bank a voluntary arrangement under Part 1 of the 1986 Act, the supervisor of that arrangement; and

(c)advertise the appointment in accordance with the directions of the court.

(4) Service on a director may be effected electronically by sending it to that director’s work email address.

(5) The Bank of England may disclose the fact and terms of the order of appointment to any person whom the Bank of England thinks has a sufficient business interest.

(6) Rules 19 to 22 shall then apply with the following modifications—

(a)a reference to “special administration (bank insolvency)” is to be read as a reference to “special administration (bank administration)”; and

(b)a reference to a person being appointed under rule 17 is to a person being appointed following an application made under rule 30.

(1)

Section 145 was amended by section 21 of the Financial Services Act 2010 (c. 28).

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