The Financial Services and Markets (Insolvency) (Amendment of Miscellaneous Enactments) Regulations 2019

Amendment of the Financial Collateral Arrangements (No. 2) Regulations 2003

3.—(1) The Financial Collateral Arrangements (No. 2) Regulations 2003(1) are amended as follows.

(2) In regulation 12 (close-out netting provisions to take effect in accordance with their terms) for paragraph (4) substitute—

“(4) The following provisions of the Insolvency (England and Wales) Rules 2016, or, in Scotland, any rule of law with the same or similar effect to the effect of these Rules, do not apply to a close-out netting provision unless paragraph (2)(a) applies—

(a) in rule 14.24 (administration: mutual dealings and set-off), in paragraph (6), in the definition of “mutual dealings”, paragraphs (a) and (d); and

(b) in rule 14.25 (winding up: mutual dealings and set-off), in paragraph (6), in the definition of “mutual dealings”, paragraph (c).

(4A) Rules 2.086(2)(a) and (d) and 4.096(2)(c) of the Insolvency Rules (Northern Ireland) 1991(2) (mutual credits and set off) do not apply to a close-out netting provision unless paragraph (2)(a) applies.”.

(3) In regulation 14 (modification of the Insolvency Rules 1986 and the Insolvency Rules (Northern Ireland) 1991)—

(a) for “rule 4.91 (liquidation), or rule 2.86 (administration)(3) of the Insolvency Rules 1986 (debt in foreign currency)” substitute “rule 14.21 of the Insolvency (England and Wales) Rules 2016 (debts in foreign currency)”; and

(b) in the heading for “Insolvency Rules 1986” substitute “Insolvency (England and Wales) Rules 2016”.

(4) In regulation 15 (modification of the Insolvency (Scotland) Rules 1986)—

(a) for “rules 4.16 and 4.17 of the Insolvency (Scotland) Rules 1986 and the provisions of the Bankruptcy (Scotland) Act 1985 referred to in those rules and such rules and provisions as applied by rule 2.41 of the Insolvency (Scotland) Rules 1986” substitute “rule 7.25 of the Insolvency (Scotland) (Receivership and Winding up) Rules 2018 and rule 3.114 of the Insolvency (Scotland) Company Voluntary Arrangements and Administration Rules 2018”(4); and

(b) in the heading for “Insolvency (Scotland) Rules 1986” substitute “Insolvency (Scotland) (Receivership and Winding up) Rules 2018 and the Insolvency (Scotland) (Company Voluntary Arrangements and Administration) Rules 2018”.

(1)

S.I. 2003/3226, as amended by S.I 2010/2993 and S.I 2019/341. The amendments made by SI 2019/341 will come into force on exit day.

(2)

S.R. 1991/364, as amended by S.R. 2006/47. There are other amendments, but they are not relevant.

(3)

Rule 4.91 was amended by S.I. 2003/1730 and 2005/527. Rule 2.86 was substituted by S.I. 2003/1730 and amended by S.I. 2005/527.

(4)

S.I. 2018/1082.