(This note is not part of the Regulations)
These Regulations amend certain enactments either in consequence of, or to save them from, provisions of the Small Business, Enterprise and Employment Act 2015 (c. 26) (“SBEEA”) which amend the Insolvency Act 1986 (c. 45) to implement a reform of provisions about creditors’ meetings and provisions about creditors’ notices. The reforms are made by—
sections 122 and 123 of SBEEA (abolition of requirements to hold meetings: company insolvency and individual insolvency);
sections 124 and 125 of SBEEA (ability for creditors to opt not to receive certain notices: company insolvency and individual insolvency); and
section 126 of SBEEA, which introduces Schedule 9 to that Act (further amendments relating to sections 122 to 125).
These provisions (“the reforms”) came into force in England and Wales on 6th April 2017.
Parts 1 and 5 of these Regulations come into force on the day after the day on which these Regulations are made. Parts 2, 3 and 4 of these Regulations come into force on the 21st day after the day on which these Regulations are made.
Parts 2 and 3 of these Regulations make savings and consequential amendments in relation to the reforms. Part 2 amends primary legislation and Part 3 amends subordinate legislation.
Where primary or subordinate legislation applies provisions of the Insolvency Act 1986 with modifications—
to financial institutions which are not companies or partnerships, or
for the purposes of special insolvency regimes enacted for financial institutions (whether or not they are companies or partnerships),
the amendments insert savings provision (with one exception), so that the applied provisions will continue to have effect in relation to the institutions and regimes concerned as though the reforms had not been enacted.
The exception is Part 6 of the Financial Services (Banking Reform) Act 2013 (c. 33) (“the 2013 Act”), which provides for the special administration of financial market infrastructure systems. In this case and where primary or subordinate legislation modifies the application of the Insolvency Act 1986 to companies, partnerships or individuals carrying on insurance or other financial activities, consequential amendments are made to take account of the reforms.
The reforms have effect with reference to insolvency rules. In England and Wales those rules are contained in the Insolvency (England and Wales) Rules 2016 (S.I. 2016/1024) (“the 2016 Rules”), which came into force on 6th April 2017. The reforms and the 2016 Rules commenced in England and Wales before the reforms are commenced in Scotland. Consequently, enactments amended to take account of the reforms in England and Wales are also amended, where necessary, so that they apply in Scotland as if the reforms had not been enacted.
Part 4 of these Regulations makes transitional provision, where necessary, for amendments made to give effect to the reforms. Transitional provision ensures that certain amendments will not have effect in relation to creditors’ meetings arranged before 6th April 2017 which are to be held on or after the date on which Parts 2 and 3 of these Regulations come into force.
Part 5 of these Regulations makes saving provision for the Insolvency Rules 1986 (S.I. 1986/1925) as amended, which are revoked by the 2016 Rules.
An impact assessment has not been produced for this instrument as no impact on the costs of business or the voluntary sector is foreseen.