Grounds for applying6

1

In this regulation—

a

Ground A is that the investment bank is, or is likely to become, unable to pay its debts;

b

Ground B is that it would be fair to put the investment bank into special administration; and

c

Ground C is that it is expedient in the public interest to put the investment bank into special administration.

2

The F1FCA or, where relevant, the PRA or the persons listed in regulation 5(1)(a) to (e) may apply for a special administration order only if they consider that Ground A or Ground B is met.

3

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.

4

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) M1 of the Insolvency Act (petition for winding up on grounds of public interest).