Part XXIV

Insolvency

Arrangements and reconstructions: companies in financial difficulty

Powers of FCA and PRA to participate in proceedings
355A
1
This section applies where Part 26A of the Companies Act 2006 (“the 2006 Act”) (arrangements and reconstructions: companies in financial difficulty) applies in relation to a company which—
a
is, or has been, an authorised person or recognised investment exchange;
b
is, or has been, any of the following—
i
an electronic money institution;
ii
an authorised payment institution;
iii
a small payment institution;
iv
a registered account information service provider;
c
is, or has been, an appointed representative; or
d
is carrying on, or has carried on, a regulated activity in contravention of the general prohibition.
2
A relevant applicant must give notice to the appropriate regulator of—
a
any application which the relevant applicant intends to make under section 901C(1) of the 2006 Act, and
b
any application which the relevant applicant believes a creditor or member of the company has made, or intends to make, under section 901C(1) of that Act in relation to the company.
3
A relevant applicant may not make an application under section 901C(1) of the 2006 Act in relation to a company that is a PRA-regulated person without the consent of the PRA.
4
In this section “relevant applicant”, in relation to a company, means—
a
the company;
b
if the company is being wound up, the liquidator;
c
if the company is in administration, the administrator.
5
The appropriate regulator is entitled to be heard at any hearing of an application made under section 901C or 901F of the 2006 Act in relation to the company.
6
Any notice or other document required to be sent to a creditor of the company must also be sent to the appropriate regulator.
7
A person appointed for the purpose by the appropriate regulator is entitled—
a
to attend any meeting of creditors of the company summoned under section 901C of the 2006 Act;
b
to make representations as to any matter for decision at such a meeting.
8
In this section—
- “the appropriate regulator” means—
  1. where the company is a PRA-regulated person, each of the FCA and the PRA, except that the reference in subsection (7) to a person appointed by the appropriate regulator is to be read as a reference to a person appointed by either the FCA or the PRA;
  2. in any other case, the FCA;
- “authorised payment institution”, “small payment institution” and “registered account information service provider” have the same meaning as in the Payment Services Regulations 2017 (
S.I. 2017/752
) (see regulation 2 of those Regulations);
- “electronic money institution” has the same meaning as in the Electronic Money Regulations 2011 (
S.I. 2011/99
) (see regulation 2 of those Regulations).
Pt. 24 applied in part (with modifications) (8.7.2021) by S.I. 2017/752, Sch. 6 para. 9 (as substituted by The Payment and Electronic Money Institution Insolvency Regulations 2021 (S.I. 2021/716), regs. 2, 48(1))
Ss. 355A, 355B and cross-heading inserted (26.6.2020) by Corporate Insolvency and Governance Act 2020 (c. 12), s. 49(1), Sch. 9 para. 20(2) (with ss. 2(2), 5(2))
Pt. 24 applied (with modifications) (8.12.2017) by The Risk Transformation Regulations 2017 (S.I. 2017/1212), regs. 1(2), 166(2), 167(2), Sch. 2, Sch. 3 (with regs. 168, 189)
Pt. 24 applied in part (with modifications) (8.7.2021) by S.I. 2011/99, Sch. 3 para. 7 (as substituted by The Payment and Electronic Money Institution Insolvency Regulations 2021 (S.I. 2021/716), regs. 2, 48(2))
S. 355A applied (with modifications) by S.I. 2014/229, art. 5A (as inserted (E.W.S.) (18.7.2020) by The Co-operative and Community Benefit Societies and Credit Unions (Arrangements, Reconstructions and Administration) (Amendment) and Consequential Amendments Order 2020 (S.I. 2020/744), arts. 1, 9)