The Payment and Electronic Money Institution Insolvency (England and Wales) Rules 2021
PART 1
Introductory Provisions
1
Citation
2
Commencement
3
Extent
4
Interpretation
5
Application of Rules
PART 2
Application for special administration order
6
Content of application
7
Statement of proposed administrator
8
Witness statement in support of application
9
Filing of application
10
Service of application
11
Proof of service
12
Further notification
13
The hearing
14
The special administration order
15
Costs
16
Notice of special administration order
PART 3
Process of Special Administration
CHAPTER 1
Notice of appointment and statement of affairs
17
Notification and advertisement of administrator’s appointment
18
Notice requiring statement of affairs
19
Statement of affairs: content
20
Details of the asset pool, safeguarding measures and reconciliation
21
Verification, filing and statement of concurrence
22
Limited disclosure
23
Release from duty to submit statement of affairs
24
Expenses of statement of affairs
25
Submission of accounts
CHAPTER 2
Statement of proposals
26
Administrator’s proposals
27
Limited disclosure of the statement of proposals
CHAPTER 3
Initial meeting to consider proposals
28
Initial meeting
29
Notice to officers
30
Business of the initial meeting
31
Adjournment of meeting to approve the statement of proposals
32
Revision of the statement of proposals
33
Meeting to approve the revised statement of proposals
34
Notice to creditors and customers
CHAPTER 4
Meetings generally
35
Meetings generally
36
Venue
37
Notice of meeting by individual notice: when and where sent
38
Notice of meeting by individual notice: content and accompanying documents
39
Notice of meeting by advertisement only
40
Content of notice for meetings
41
Gazetting and advertisement of meetings
42
Non-receipt of notice of meeting
43
Requisition of meetings
44
Expenses of requisitioned meetings
45
Quorum at meetings
46
Chair at meetings
47
Adjournment by chair
48
Adjournment in absence of chair
49
Claims, proofs and proxies in adjournment
50
Suspension
51
Venue and conduct of company meetings
CHAPTER 5
Entitlement to vote at meetings
52
Entitlement to vote (creditors)
53
Calculation of voting rights (creditors)
54
Calculation of voting rights: special cases (creditors)
55
Procedure for admitting creditors’ claims for voting
56
Entitlement to vote (customers)
57
Procedure for admitting customers’ relevant funds claims for voting
58
Voting at meetings of creditors and customers
59
Requisite majorities
60
Requisite majorities at contributories’ meetings
61
Appeals against decisions under this Chapter
CHAPTER 6
Correspondence and remote attendance
62
Correspondence instead of meetings
63
Remote attendance at meetings conducted in accordance with section 246A
64
Action where person excluded
65
Indication to excluded person
66
Complaint
CHAPTER 7
Records, returns and reports
67
Minutes
68
Returns or reports of meetings
CHAPTER 8
The creditors’ committee
69
Constitution of creditors’ committee
70
Formalities of establishment
71
Functions and meetings of the creditors’ committee
72
The chair at meetings
73
Quorum
74
Creditors’ committee members’ representatives
75
Resignation
76
Termination of membership
77
Removal
78
Vacancies
79
Procedure at meetings
80
Remote attendance at meetings of creditors’ committee
81
Procedure for requests that a place for a meeting should be specified
82
Resolutions of creditors’ committees by post
83
Information from administrator
84
Expenses of members
85
Members dealing with the institution
86
Formal defects
CHAPTER 9
Progress reports
87
Content of progress report
88
Delivering a progress report
CHAPTER 10
Proxies and corporate representation
89
Definition of proxy
90
Issue and use of forms
91
Use of proxies at meetings
92
Retention of proxies
93
Right of inspection
94
Proxy-holder with financial interest
95
Corporate representation
CHAPTER 11
Disposal of charged property
96
Application to dispose of charged property
PART 4
Expenses of the special administration
97
Expenses of voluntary arrangement
98
Expenses to be paid out of the institution’s assets
99
Expenses to be paid out of the relevant funds
100
Pre-administration costs
101
Allocation of expenses to be paid from the relevant funds
PART 5
Relevant funds claims
102
Content of relevant funds claim
103
Debt in a foreign currency
104
Costs of making a claim
105
New administrator appointed
106
Admission and rejection of relevant funds claim
107
Appeal against decision on relevant funds claim
108
Withdrawal or variation of relevant funds claim
109
Exclusion of relevant funds claim by the court
PART 6
Objective 1
CHAPTER 1
Setting a bar date and further notifications
110
Notice of the bar date
111
Notifying potential claimants after bar date has passed
CHAPTER 2
Distribution plan
112
Distribution plan
113
Approval by the creditors’ committee
114
Approval by the court
115
Treatment of late claimants
PART 7
Distributions to creditors
CHAPTER 1
Application
116
Distribution to creditors
117
Debts of institution to rank equally
118
Supplementary provisions as to dividend
119
Division of unsold assets
CHAPTER 2
Proofs of debt
120
Proving a debt
121
Costs of proving
122
Administrator to allow inspection of proofs
123
New administrator appointed
124
Admission and rejection of proofs for dividend
125
Appeal against decision on proof
126
Withdrawal or variation of proof
127
Exclusion of proof by the court
CHAPTER 3
Quantification of claims
128
Estimate of quantum
129
Negotiable instruments
130
Secured creditors
131
Discounts
132
Mutual credit and set-off
133
Debt in a foreign currency
134
Payments of a periodical nature
135
Interest
136
Debt payable at a future time
137
Value of security
138
Surrender for non-disclosure
139
Redemption by administrator
140
Test of security’s value
141
Realisation of security by creditor
142
Notice of proposed distribution
143
Admission or rejection of proofs
144
Postponement or cancellation of dividend
145
Declaration of a dividend
146
Notice of declaration of a dividend
147
Payments of dividend and related matters
148
Notice of no dividend or no further dividend
149
Proof altered after payment of dividend
150
Secured creditors
151
Disqualification from dividend
152
Assignment of right to dividend
153
Debt payable at a future time
PART 8
The Administrator
CHAPTER 1
Powers of the administrator
154
General powers
155
Powers of disclaimer
156
Communication of disclaimer to persons interested
157
Additional notices
158
Records
159
Application by interested party
160
Interest in property to be declared on request
161
Disclaimer presumed valid and effective
162
Application for the exercise of court’s powers under section 181
CHAPTER 2
Fixing of remuneration
163
Fixing of remuneration
164
Recourse to meeting of creditors and customers
165
Recourse to the court
166
Creditors’ and customers’ request for further information
167
Claim that remuneration is excessive
168
Review of remuneration
169
Remuneration of new administrator
170
Apportionment of set fee remuneration
CHAPTER 3
Replacing the administrator
171
Grounds for resignation
172
Notice of intention to resign
173
Notice of resignation
174
Application to court to remove administrator from office
175
Notice of vacation of office when administrator ceases to be qualified
176
Administrator deceased
177
Application to replace
178
Notification and advertisement of appointment of replacement administrator
179
Notification and advertisement of appointment of joint administrator
180
Notification of new administrator
181
Administrator’s duties on vacating office
PART 9
End of special administration
182
Final progress reports
183
Application to court by administrator
184
Application to court by creditor
185
Notification by administrator of court order
186
Moving from special administration to dissolution
PART 10
Court procedure and practice
CHAPTER 1
Application of the CPR
187
Principal court rules and practice to apply
CHAPTER 2
The Court
188
Shorthand writers — nomination, appointment, remuneration and costs
189
Court file
190
Office copies of documents
191
Payments into court
CHAPTER 3
Obtaining information and evidence
192
Further information and disclosure
193
Witness statements — general
194
Filing and service of witness statements
195
Evidence provided by the administrator
CHAPTER 4
Service of court documents
196
Application of Chapter
197
Service of court documents within the jurisdiction
198
Service of court documents outside jurisdiction
199
Service of orders staying proceedings
200
Service on joint office-holders
CHAPTER 5
Applications to court – general
201
Application of Chapter
202
Form and contents of application
203
Filing and service of application
204
Directions
205
Hearings without notice
206
Hearing of application
207
Adjournment of the hearing of an application
CHAPTER 6
Applications to the court under section 176A of the IA 1986
208
Application of Chapter
209
Applications under section 176A(5) to disapply section 176A
210
Notice of application under section 176A(5)
211
Notice of an order under section 176A(5)
CHAPTER 7
Applications for an order under section 236 of the IA 1986
212
Application of section 236 of the IA 1986
213
Form and contents of application
214
Order for examination etc.
215
Procedure for examination
216
Record of examination
217
Costs of proceedings under section 236 of the IA 1986
CHAPTER 8
People who lack capacity to manage their affairs etc.
218
Application of Chapter 8
219
Appointment of another person to act
220
Witness statement in support of application
221
Service of notices following appointment
CHAPTER 9
Formal defects
222
Formal defects
CHAPTER 10
Costs
223
Application of Chapter 10
224
Requirement to assess costs by the detailed procedure
225
Procedure where detailed assessment is required
226
Costs of officers charged with execution of writs or other process
227
Costs paid otherwise than out of the institution’s estate
228
Award of costs against the administrator
229
Applications for costs
230
Costs and expenses of witnesses
231
Final costs certificate
CHAPTER 11
Enforcement procedures
232
Enforcement of court orders
233
Orders enforcing compliance with these Rules
234
Warrants (general provisions)
235
Warrants under section 236
CHAPTER 12
Appeals
236
Application of Chapter 12
237
Appeals and reviews of court orders
238
Procedure on appeal
239
Appeal against decision of the Secretary of State
PART 11
Prohibited names
240
Preliminary
241
Application for permission under section 216(3)
242
First excepted case
243
Second excepted case
244
Third excepted case
PART 12
Provisions of general effect
CHAPTER 1
Miscellaneous and general
245
Costs, expenses etc
246
Provable debts
247
False representation of status for purpose of inspecting documents
248
Punishment of offences
CHAPTER 2
The giving of notice and the supply of documents
249
Application
250
Personal delivery
251
Postal delivery of documents
252
Notice etc to authorised recipients
CHAPTER 3
The giving of notice and the supply of documents to or by the administrator
253
Application
254
The form
255
Proof of sending
256
Authentication
257
Electronic delivery — general
258
Electronic delivery by administrator
259
Use of websites by administrator
260
General use of websites to deliver notices and other documents
261
Electronic delivery of special administration documents to court
262
Notice etc to joint administrators
263
Execution overtaken by judgment debtor’s insolvency
264
Notice to enforcement officers
265
Electronic submission of information
266
Contents of notices to be gazetted
267
Gazette notices relating to an institution that is a company
268
Omission of unobtainable information
269
The Gazette — general
270
Content of notices advertised other than in the Gazette
271
Non-Gazette notice relating to an institution that is a company
272
Non-Gazette notices — other provisions
CHAPTER 4
Notifications to the registrar of companies
273
Application of Chapter 4
274
Information to be contained in all notifications to the registrar of companies
275
Notification relating to the administrator
276
Notifications relating to documents
277
Notifications relating to court orders
278
Notifications relating to other events
279
Notifications of more than one nature
280
Notifications made to other persons at the same time
CHAPTER 5
Further provisions concerning documents
281
Confidentiality of documents — grounds for refusing inspection
282
Right to copy documents
283
Charges for copy documents
284
Right to have list of creditors
CHAPTER 6
Time limits and security
285
Time limits
286
Administrator’s security
CHAPTER 7
Transfer of proceedings
287
Proceedings commenced in the wrong court
288
Proceedings other than special administration commenced
PART 13
General interpretation and application
289
Introduction
290
“The court” and “the registrar”
291
Venue
292
Insolvent estate
293
The appropriate fee
294
“Debt” and “liability”
295
Application of the IA 1986 and the Company Directors Disqualification Act
SCHEDULE
Punishment of offences
2021 No. 1178

Financial Services And Markets

Insolvency

The Payment and Electronic Money Institution Insolvency (England and Wales) Rules 2021
Made
21st October 2021
Laid before Parliament
22nd October 2021
Coming into force
12th November 2021
The Lord Chancellor makes the following Rules, in exercise of the powers conferred by section 411(1A)(a), (2), (2C) and (3) of the Insolvency Act 1986 , as applied by the Payment and Electronic Money Institution Insolvency Regulations 2021 .
The Treasury concur in the making of these Rules.
The Chancellor of the High Court (by the authority of the Lord Chief Justice under section 411(7) of the Insolvency Act 1986) concurs in the making of these Rules in so far as they affect court procedure.
Before making these Rules, the Lord Chancellor consulted the committee existing for the purposes of section 413 of the Insolvency Act 1986.
1986 c. 45.
S.I. 2021/716.