Part XXIV Insolvency

Bankruptcy

374F1Powers of FCA or PRA to participate in proceedings.

1

This section applies if a person F3... presents a petition to the court—

a

under section 264 of the 1986 Act (or Article 238 of the 1989 Order) for a bankruptcy order to be made against an individual;

b

under section 5 of the 1985 Act for the sequestration of the estate of an individual; or

c

under section 6 of the 1985 Act for the sequestration of the estate belonging to or held for or jointly by the members of an entity mentioned in subsection (1) of that section.

2

The F4appropriate regulator is entitled to be heard—

a

at the hearing of the petition; and

b

at any other hearing in relation to the individual or entity under—

i

Part IX of the 1986 Act;

ii

Part IX of the 1989 Order; or

iii

the 1985 Act.

3

A copy of the report prepared under section 274 of the 1986 Act (or Article 248 of the 1989 Order) must also be sent to the F4appropriate regulator.

4

A person appointed for the purpose by the F4appropriate regulator is entitled—

a

to attend any meeting of creditors of the individual or entity;

b

to attend any meeting of a committee established under section 301 of the 1986 Act (or Article 274 of the 1989 Order);

c

to attend any meeting of commissioners held under paragraph 17 or 18 of Schedule 6 to the 1985 Act; and

d

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

5

“Individual” means an individual who—

a

is, or has been, an authorised person; or

b

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

6

“Entity” means an entity which—

a

is, or has been, an authorised person; or

b

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

F27

"The appropriate regulator” means—

a

for the purposes of subsections (2) and (3)—

i

where the individual or entity 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 (4)—

i

where the individual or entity is a PRA-regulated person, the FCA or the PRA, and

ii

in any other case, the FCA.

8

But where the petition was presented by a regulator “the appropriate regulator” does not include the regulator which presented the petition.