Insolvency Act 1986U.K.
2.—(1) Section 387A (financial institutions and their non-preferential debts) of the Insolvency Act 1986(1) is amended as follows.
(2) In subsection (1)—
(a)after paragraph (d) insert—
“(da)an investment holding company,”;
(b)for paragraph (e) substitute—
“(e)a financial institution which is—
(i)a subsidiary of an entity referred to in paragraphs (a) to (da), and
(ii)covered by the supervision of that entity on a consolidated basis by the Financial Conduct Authority in accordance with Part 9C rules or by the Prudential Regulation Authority in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms(2) or CRR rules, or,”.
(3) At the end of subsection (2) insert “, except for the definitions of “consolidated basis” and “consolidated situation””.
(4) After subsection (2) insert—
“(2A) For the purposes of subsection (1)—
“on a consolidated basis” means on the basis of the consolidated situation;
“consolidated situation” means the situation that results from an entity being treated, for the purposes of Part 9C rules, Regulation (EU) 575/2013 or CRR rules (as appropriate), as if that entity and one or more other entities formed a single entity;
“CRR rules” has the meaning given in section 144A of the Financial Services and Markets Act 2000(3);
“Part 9C rules” has the meaning given in section 143F of the Financial Services and Markets Act 2000(4).”.
Commencement Information
I1Reg. 2 in force at 1.1.2022, see reg. 1(3)
1986 c. 45; section 387A was inserted by S.I. 2018/1244.
EUR 2013/575, amended, or prospectively amended by, sections 1 and 7 of, and Schedules 1 and 4 to, the Financial Services Act 2021 (c. 22) and S.I. 2018/1401, 2019/264, 660, 710 and 1232, 2020/1301, 1385 and 1470 and 2021/558.
Section 144A was inserted by paragraph 1 of Schedule 3 to the Financial Services Act 2021.
Section 143F was inserted by paragraph 1 of Schedule 2 to the Financial Services Act 2021.