Part XXIV

Insolvency

Supplemental provisions concerning insurers

Excluded liabilities
377B
1
Each of the following is an “excluded liability”—
a
a liability with an original maturity of less than 7 days;
b
an amount payable in respect of goods delivered, or a service provided, on or after the date on which the write-down order is made;
c
an amount in respect of remuneration or expenses of a person appointed under section
377G
to act as the manager of the write-down order (including amounts incurred before, as well as after, the person’s appointment in connection with the order or the application for the order);
d
an amount secured on property of any kind, other than an amount secured by a charge which, as created, was a floating charge;
e
an amount payable in respect of wages or salary arising under a contract of employment;
f
a contribution or other sum payable in respect of an occupational pension scheme;
g
an amount payable in respect of redundancy payments;
h
an amount payable under a contract or other instrument involving financial services.
2
In this section—
- “
contract or other instrument involving financial services
” has the meaning given by Schedule ZA2 to the 1986 Act, but does not include an agreement which is, or forms part of, an arrangement involving the issue of a capital market investment (see paragraph 6 of that Schedule);
- “
floating charge
” has the meaning given by section 251 of the 1986 Act or paragraph (1) of Article 5 of the 1989 Order;
- “
redundancy payment
” means—
  1. a redundancy payment under Part 11 of the Employment Rights Act 1996 or Part 12 of the Employment Rights (Northern Ireland) Order 1996 (
S.I. 1996/1919 (N.I. 16)
), or
  2. a payment made to a person who agrees to the termination of their employment in circumstances where they would have been entitled to a redundancy payment under that Part if dismissed;
- “
wages or salary
” includes—
  1. a sum payable in respect of a period of holiday;
  2. a sum payable in respect of a period of absence through illness or other good cause;
  3. a sum payable in lieu of holiday.
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))
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)
Ss. 377A-377J inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(e), Sch. 12 para. 1(4)
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))