The Payment and Electronic Money Institution Insolvency Regulations 2021

Special administration objectives

12.—(1) The administrator has the following special administration objectives.

(2) Objective 1 is to ensure the return of relevant funds—

(a) as soon as is reasonably practicable in accordance with regulations 13 to 15 and 17 to 34, or

(b) promptly, in the case of post-administration receipts, in accordance with regulation 16,

subject to paragraph (10).

(3) Objective 2 is to ensure timely engagement with payment system operators, the Payment Systems Regulator and the Authorities in accordance with regulation 35.

(4) Objective 3 is to either—

(a) rescue the institution as a going concern, or

(b) wind it up in the best interests of the creditors.

(5) The order in which Objectives 1 to 3 are listed in this regulation is not significant.

(6) The administrator is entitled to deal with and return relevant funds in whatever order the administrator thinks best achieves Objective 1.

(7) The administrator must commence work on each objective immediately after appointment, prioritising the order of work on each objective as the administrator thinks fit, in order to achieve the best result overall for users or holders and creditors.

(8) The administrator must set out, in the statement of proposals, the order in which the administrator intends to further pursue the objectives once the statement has been approved.

(9) The administrator must work to achieve each objective, in accordance with the priority afforded to the objective, as quickly and efficiently as is reasonably practicable.

(10) Paragraphs (2) and (6) and regulations 13 to 23 do not apply to relevant funds received by—

(a) a small payment institution, or

(b) in the case of funds received for the execution of payment transactions that are not related to the issuance of electronic money, a small electronic money institution,

where the institution had not chosen to voluntarily safeguard the funds when it entered special administration.