The Financial Markets and Insolvency Regulations 1991

Limitation on disapplication of sections 10(1)(b) and 11(3)(c) ofInsolvency Act 1986 in relation to CGO Service charges

14.—(1) In this regulation“qualifying period” means the period beginning with the fifth business day before theday on which a petition for the making of an administration order inrelation to the relevant CGO Service member or former CGO Service memberis presented and ending with the second business day after the day onwhich an administration order is made in relation to the relevant CGOService member or former CGO service member pursuant to the petition.

(2) The disapplication of sections 10(1)(b) and 11(3)(c) of theInsolvency Act 1986(1) by section 175(1)(a) of the Act shall be limited inrespect of a CGO Service charge so that it has effect only to the extentnecessary to enable there to be realised, whether through the sale ofspecified securities or otherwise, a sum equal to whichever is less ofthe following—

(a) the total amount of payment obligations discharged by the settlementbank in respect of transfers and allotments of specified securities madeduring the qualifying period to the relevant CGO Service member orformer CGO Service member through the medium of the CGO Service less thetotal amount of payment obligations discharged to the settlement bank inrespect of transfers of specified securities made during the qualifyingperiod by the relevant CGO Service member or former CGO Service memberthrough the medium of the CGO Service; and

(b) the amount (if any) described in regulation 13(b) due to thesettlement bank from the relevant CGO Service member or former CGOService member.

(1)

1986 c. 45.