The Credit Institutions and Insurance Undertakings Reorganisation and Winding Up (Amendment) (EU Exit) Regulations 2019

Grounds for making an order under regulation 13

14.—(1) The court may make an order under regulation 13 only if the court is satisfied that one or more of the following conditions are met—

(a) that if an order is not made (on application by the Bank), the relevant measure or relevant proceedings will have an adverse effect on financial stability in the United Kingdom;

(b) that an order should be made (on application by the scheme manager or a UK creditor) because under the relevant measure or in the relevant proceedings UK creditors of the relevant EEA insurer would be materially prejudiced by the operation of the law of the EEA State under which the measure was adopted or imposed or the proceedings were opened—

(i) in relation to its treatment of the United Kingdom as a State which is outside the EEA; or

(ii) by reason of its different treatment of UK creditors by comparison with its treatment of EEA creditors who have similar rights;

(c) that having regard to the operation of the law of the EEA State under which the measure was adopted or imposed or the proceedings were opened, a refusal to make the order (on application by the scheme manager or a UK creditor) would be unlawful under section 6 of the Human Rights Act 1998 (public authority not to act incompatibly with European Convention on Human Rights).

(2) Where the court makes an order under regulation 13—

(a) the court must state in the order which one or more of the conditions specified in paragraph (1) are met; and

(b) an officer of the court must serve a copy of the order on—

(i) the applicant for the order;

(ii) if the Bank is not the applicant, the Bank;

(iii) if the scheme manager is not the applicant, the scheme manager;

(iv) the Prudential Regulation Authority;

(v) the Financial Conduct Authority;

(vi) the relevant EEA insurer.