Part XXIV Insolvency

Administration orders

C1C2C3C5362F14Powers of FCA and PRA to participate in proceedings.

1

This section applies if a person F17... F1makes an administration application under Schedule B1 to the 1986 Act F2or Schedule B1 to the 1989 Order in relation to a company or partnership which—

a

is, or has been, an authorised person F18or recognised investment exchange;

b

is, or has been, an appointed representative; or

c

is carrying on, or has carried on, a regulated activity in contravention of the general prohibition.

F31A

This section also applies in relation to—

a

the appointment under paragraph 14 or 22 of Schedule B1 to the 1986 Act F4or paragraph 15 or 23 of Schedule B1 to the 1989 Order of an administrator of a company of a kind described in subsection (1)(a) to (c), or

b

the filing with the court of a copy of notice of intention to appoint an administrator under F5any of those paragraphs.

F151B

This section also applies in relation to—

a

the appointment under paragraph 22 of Schedule B1 to the 1986 Act (as applied by order under section 420 of the 1986 Act), or under paragraph 23 of Schedule B1 to the 1989 Order (as applied by order under Article 364 of the 1989 Order), of an administrator of a partnership of a kind described in subsection (1)(a) to (c), or

b

the filing with the court of a copy of notice of intention to appoint an administrator under either of those paragraphs (as so applied).

2

The F19appropriate regulator is entitled to be heard—

a

at the hearing of the F6administration application F7or the petition; and

b

at any other hearing of the court in relation to the company or partnership under Part II of the 1986 Act (or Part III of the 1989 Order).

3

Any notice or other document required to be sent to a creditor of the company or partnership must also be sent to the F19appropriate regulator.

F84

The F19appropriate regulator may apply to the court under paragraph 74 of Schedule B1 to the 1986 Act F9or paragraph 75 of Schedule B1 to the 1989 Order.

4A

In respect of an application under subsection (4)—

a

paragraph 74(1)(a) and (b) shall have effect as if for the words “harm the interests of the applicant (whether alone or in common with some or all other members or creditors)” there were substituted the words “harm the interests of some or all members or creditors”, and

F10b

paragraph 75(1)(a) and (b) of Schedule B1 to the 1989 Order shall have effect as if for the words “harm the interests of the applicant (whether alone or in common with some or all other members or creditors)” there were substituted the words harm the interests of some or all members or creditors.

5

A person appointed for the purpose by the F19appropriate regulator is entitled—

a

to attend any meeting of creditors of the company or partnership summoned under any enactment;

b

to attend any meeting of a committee established under F11paragraph 57 of Schedule B1 to the 1986 Act (or F12paragraph 58 of Schedule B1 to the 1989 Order; and

c

to make representations as to any matter for decision at such a meeting.

C46

If, during the course of the administration of a company, a compromise or arrangement is proposed between the company and its creditors, or any class of them, the F19appropriate regulator may apply to the court under F13section 896 or 899 of the Companies Act 2006.

F167

"The appropriate regulator” means—

a

for the purposes of subsections (2) to (4) and (6)—

i

where the company or partnership is a PRA-regulated person, each of the FCA and the PRA, and

ii

in any other case, the FCA;

b

for the purposes of subsection (5)—

i

where the company or partnership is a PRA-regulated person, the FCA or the PRA, and

ii

in any other case, the FCA.

8

But where the administration application was made by a regulator “the appropriate regulator” does not include that regulator.