text:
Citation and commencement
1
These Regulations may be cited as the Investment Bank Special Administration Regulations 2011 and shall come into force on the day after the day on which they are made.
Interpretation
2
1
In these Regulations, except where the context otherwise requires —
“the Act” means the Banking Act 2009;
“administrator” has the meaning set out in regulation 4;
“Authorities” means the Bank of England, the Treasury and the FSA;
“business day” has the meaning set out in section 251 of the Insolvency Act;
“client” means a person for whom the investment bank has undertaken to receive or hold client assets (whether or not on trust and whether or not that undertaking has been complied with);
“contributory” has the meaning set out in section 79 of the Insolvency Act ;
“court” means —
in England and Wales, the High Court,
in Scotland, the Court of Session, and
in Northern Ireland, the High Court;
“deposit-taking bank” means an investment bank to which the definition set out either in section 2 or in section 91 of the Act applies;
“the Disqualification Act” means the Company Directors Disqualification Act 1986 ;
“enactment” includes —
an enactment comprised in or in an instrument made under an Act of the Scottish Parliament;
Acts and Measures of the National Assembly for Wales and instruments made such an Act or Measure;
Northern Ireland legislation;
and any EU Instrument (as defined in Part 2 of Schedule 1 of the European Communities Act 1972 );
“fair” is to be construed in accordance with section 93(8) of the Act;
“FSA” means the Financial Services Authority;
“FSCS” means the scheme manager of the Financial Services Compensation Scheme (established under Part 15 of FSMA);
“FSMA” means the Financial Services and Markets Act 2000 ;
“the Insolvency Act” means the Insolvency Act 1986 ;
“insolvency rules” means rules made under section 411 of the Insolvency Act as applied and modified by regulation 15;
“market charge” means a charge to which Part 7 of the Companies Act 1989 applies as a result of the operation of section 173 of that Act ;
“market contract” means a contract to which Part 7 of the Companies Act 1989 applies as a result of the operation of section 155 of that Act ;
“market infrastructure body” means a recognised clearing house, recognised investment exchange, recognised overseas clearing house or recognised overseas investment exchange in relation to which the investment bank is a counterparty in a market contract or to a market charge or is a member or participant;
“Objective 1”, “Objective 2” and “Objective 3” have the meanings set out in regulation 10;
“prescribed” means prescribed by insolvency rules;
“recognised clearing house” has the meaning set out in section 285 of FSMA;
“recognised investment exchange” has the meaning set out in section 285 of FSMA;
“recognised overseas clearing house” means an overseas person in respect of whom the FSA has made a recognition order under section 292 of FSMA declaring them to be a recognised clearing house;
“recognised overseas investment exchange” means an overseas person in respect of whom the FSA has made a recognition order under section 292 of FSMA declaring them to be a recognised investment exchange;
“Schedule B1” means Schedule B1 to the Insolvency Act ;
“Schedule B1 administration” means the administration procedure set out in Schedule B1;
“securities” means financial instruments as defined in regulation 3 of the Financial Collateral Arrangements (No.2) Regulations 2003 ;
“security interest” means any legal or equitable interest or any other right in security (other than a title transfer financial collateral arrangement) created or otherwise arising by way of security including —
a pledge,
a mortgage,
a fixed charge,
a charge created as a floating charge, or
a lien;
“special administration” has the meaning set out in regulation 3;
“special administration (bank insolvency)” has the meaning set out in paragraph 1 of Schedule 1;
“special administration (bank administration)” has the meaning set out in paragraph 1 of Schedule 2;
“special administration objectives” has the meaning set out in regulation 10;
“special administration order” has the meaning set out in regulation 4;
“statement of proposals” means the statement of proposals drawn up by the administrator in accordance with —
paragraph 49 of Schedule B1 (as applied by regulation 15);
where the FSA has given a direction, regulation 17; or
in relation to Schedule 2, paragraph 7 of that schedule; and
“title transfer financial collateral arrangement” has the meaning set out in regulation 3 of the Financial Collateral Arrangements (No.2) Regulations 2003.
2
In the definition of “security interest”, in sub-paragraph (c), in its application to Scotland, “fixed charge” means a fixed security within the meaning given by section 47(1) of the Bankruptcy and Diligence etc. (Scotland) Act 2007 .
3
References in these Regulations to a regulated activity must be read with —
a
section 22 of FSMA (classes of regulated activity and categories of investment);
b
any relevant order under that section; and
c
Schedule 2 to that Act (regulated activities).
4
For the purposes of a reference in these Regulations to inability to pay debts —
a
an investment bank that is in default on an obligation to pay a sum due and payable under an agreement is to be treated as unable to pay its debts; and
b
section 123 of the Insolvency Act (inability to pay debts) also applies,
and for the purposes of sub-paragraph (a), “agreement” means an agreement the making or performance of which constitutes or is part of a regulated activity carried on by the investment bank.
5
Expressions used in these Regulations and in the Insolvency Act have the same meaning as in that Act, and the provision made by paragraphs 100 and 101 of Schedule B1 (as applied by regulation 15) in respect of the effect of the references in that Schedule also apply in respect of the same references where used in these Regulations.
6
Expressions used in these Regulations and in the Companies Act 2006 have the same meaning as in that Act.
7
Regulation 26 applies with respect to the application of these Regulations to Northern Ireland.
Overview
3
1
These Regulations provide for a procedure to be known as investment bank special administration (“special administration”).
2
The main features of special administration are that —
a
an investment bank enters the procedure by court order;
b
the order appoints an administrator;
c
the administrator is to pursue the special administration objectives in accordance with the statement of proposals approved by the meeting of creditors and clients and, in certain circumstances, the FSA; and
d
in other respects the procedure is the same as for Schedule B1 administration under the Insolvency Act, subject to specific modifications, and the inclusion of certain liquidation provisions of the Insolvency Act.
3
Where the investment bank is a deposit-taking bank with eligible depositors (within the meaning of section 93(3) of the Act) —
a
regulations 4 to 8 do not apply; and
b
in addition to the insolvency procedures established under Parts 2 and 3 of the Act, the Bank of England or, as the case may be, the FSA, may apply for an order to put the bank into —
c
special administration (bank insolvency) as set out in Schedule 1 (as applied by regulation 9); or
d
special administration (bank administration) as set out in Schedule 2 (as applied by regulation 9).
4
Where the investment bank is a deposit-taking bank but has no eligible depositors, the investment bank must not be put into special administration (bank insolvency); instead the investment bank may be put into either —
a
special administration (bank administration), (in which case regulations 4 to 8 do not apply); or
b
special administration.
Special administration order
4
1
An investment bank special administration order (“special administration order”) is an order appointing a person as the investment bank administrator (“administrator”) of an investment bank.
2
A person is eligible for appointment as administrator under a special administration order if qualified to act as an insolvency practitioner.
3
An appointment may be made only if the person has consented to act.
4
For the purpose of these Regulations —
a
an investment bank is “in special administration” while the appointment of the administrator has effect;
b
an investment bank “enters special administration” when the appointment of the administrator takes effect;
c
an investment bank ceases to be in special administration when the appointment of the administrator ceases to have effect in accordance with these Regulations; and
d
an investment bank does not cease to be in special administration merely because an administrator vacates office (by reason of resignation, death or otherwise) or is removed from office.
Application
5
1
An application to the court for a special administration order may be made to the court by —
a
the investment bank;
b
the directors of the investment bank;
c
one or more creditors of the investment bank;
d
the designated officer for a magistrates’ court in the exercise of the power conferred by section 87A of the Magistrates’ Courts Act 1980 (fines imposed on companies);
e
(subject to paragraph (7)), a contributory of the investment bank;
f
a combination of persons listed in sub-paragraphs (a) to (e);
g
the Secretary of State; or
h
the FSA.
2
Where an application is made by a person other than the FSA, the FSA is entitled to be heard at —
a
the hearing of the application for special administration; and
b
any other hearing of the court in relation to the investment bank under these Regulations.
3
An application must nominate a person to be appointed as the administrator.
4
As soon as is reasonably practicable after making the application, the applicant shall notify —
a
a person who gave notice to the FSA in accordance with Condition 1 of regulation 8; and
b
such other persons as may be prescribed.
5
An application may not be withdrawn without the permission of the court.
6
In sub-paragraph (1)(c), “creditor” includes a contingent creditor and a prospective creditor.
7
A contributory (“C”) is not entitled to make an application for special administration unless either —
a
the number of members is reduced below 2; or
b
the shares in respect of which C is a contributory, or some of them, either were originally allotted to C, or have been held by C and registered in C’s name, for at least 6 months during the 18 months before the commencement of the special administration, or have devolved on C through the death of a former holder.
Grounds for applying
6
1
In this regulation —
a
Ground A is that the investment bank is, or is likely to become, unable to pay its debts;
b
Ground B is that it would be fair to put the investment bank into special administration; and
c
Ground C is that it is expedient in the public interest to put the investment bank into special administration.
2
The FSA or the persons listed in regulation 5(1)(a) to (e) may apply for a special administration order only if they consider that Ground A or Ground B is met.
3
The Secretary of State may apply for a special administration order only if it appears to the Secretary of State that Grounds B and C are met.
4
The sources of information on the basis of which the Secretary of State may reach a decision on Ground C include those listed in section 124A(1) of the Insolvency Act (petition for winding up on grounds of public interest).
Powers of the court
7
1
On an application for a special administration order the court may —
a
grant the application in accordance with paragraph (2);
b
dismiss the application;
c
adjourn the hearing (generally or to a specified date);
d
make an interim order;
e
on the application of the FSA, treat the application as an administration application by the FSA under Schedule B1 in accordance with section 359(1) of FSMA ; or
f
make any other order which the court thinks appropriate.
2
The court may make a special administration order if it is satisfied that the company is an investment bank and —
a
(on the application of persons listed in regulation 5(1)(a) to (e) or the FSA) that Ground A or Ground B in regulation 6 is satisfied;
b
(on the application of the Secretary of State) if satisfied that Grounds B and C in regulation 6 are satisfied.
3
Where the application for a special administration order is made by members of the investment bank as contributories on the basis that Ground B in regulation 6 is satisfied, the court, if it is of the opinion that —
a
the applicants are entitled to relief either by a special administration order being made in respect of the investment bank or by some other means; and
b
in the absence of any other remedy it would be fair that the special administration order be made in respect of the investment bank,
shall make a special administration order; but this does not apply if the court is also of the opinion that an alternative remedy is available to the applicants and that they are acting unreasonably in applying for a special administration order instead of pursuing that other remedy.
4
A special administration order takes effect in accordance with its terms.
Notice to FSA of preliminary steps to other insolvency proceedings
8
1
An application for an administration order in respect of an investment bank may not be made unless the conditions in paragraph (5) are satisfied.
2
A petition for a winding up order in respect of an investment bank may not be made unless the conditions in paragraph (5) are satisfied.
3
A resolution for the voluntary winding up of an investment bank may not be made unless the conditions in paragraph (5) are satisfied.
4
An administrator of an investment bank may not be appointed unless the conditions in paragraph (5) are satisfied.
5
The conditions are as follows —
a
Condition 1 is that the FSA has been notified of the preliminary steps taken in respect of an insolvency procedure;
b
Condition 2 is that a copy of the notice complying with Condition 1 has been filed (in Scotland, lodged) with the court (and made available for public inspection by the court);
c
Condition 3 is that —
i
the period of 2 weeks, beginning with the day on which the notice is received by the FSA, has ended, or
ii
the FSA has informed the person who gave the notice that it consents to the insolvency procedure to which the notice relates going ahead; and
d
Condition 4 is that no application for a special administration order is pending.
6
Where the FSA receives notice under Condition 1, it shall inform the person who gave the notice, within the period in Condition 3 —
a
whether or not it consents to the insolvency procedure to which the notice relates going ahead;
b
whether or not it intends to apply for that (or an alternative) insolvency procedure itself; or
c
whether it intends to apply for a special administration order.
7
Arranging for the giving of the notice in order to satisfy Condition 1 may be treated as a step with a view to minimising the potential loss to the investment bank’s creditors for the purpose of section 214 of the Insolvency Act (as applied by regulation 15).
8
In this regulation —
“investment bank” does not include an investment bank that is a deposit-taking bank; and
“preliminary steps taken in respect of an insolvency procedure” means that —
an application for an administration order has been made;
a petition for a winding up order has been presented;
a resolution for voluntary winding up has been proposed by the investment bank; or
a resolution for the appointment of an administrator has been proposed.
Application where investment bank is a deposit-taking bank
9
Subject to regulation 3(4), where the investment bank is a deposit-taking bank then Schedule 1 (Special administration (bank insolvency)) and Schedule 2 (Special administration (bank administration)) apply.
Special administration objectives
10
1
The administrator has three special administration objectives (“the special administration objectives”) —
a
Objective 1 is to ensure the return of client assets as soon as is reasonably practicable;
b
Objective 2 is to ensure timely engagement with market infrastructure bodies and the Authorities pursuant to regulation 13; and
c
Objective 3 is to either —
i
rescue the investment bank as a going concern, or
ii
wind it up in the best interests of the creditors.
2
In relation to sub-paragraph (1)(a), the administrator is entitled to deal with and return client assets in whatever order the administrator thinks best achieves Objective 1.
3
The order in which the special administration objectives are listed in this regulation is not significant: subject to regulation 16, the administrator must —
a
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 clients and creditors; and
b
set out, in the statement of proposals made under paragraph 49 of Schedule B1 (as applied by regulation 15), the order in which the administrator intends to pursue the objectives once the statement has been approved.
4
The administrator must work to achieve each objective, in accordance with the priority afforded to the objective as provided in paragraph (3), as quickly and efficiently as is reasonably practicable.
5
For the purposes of Objective 1, “return of client assets” or where the client assets are “returned” to the client means that the investment bank relinquishes full control over the assets for the benefit of the client to the extent of —
a
the client’s beneficial entitlement to those assets (where the assets in question have been held on trust by the investment bank); or
b
the client’s right to those assets as bailor or otherwise (where the investment bank has been holding those assets as bailee (in Scotland, as custodier of those assets) or by some other means to the order of the client);
having taken into account any entitlement the investment bank might have, or a third party might have, in respect of those assets, of which the administrator is aware at the time the assets are returned to the client.
6
In relation to paragraph (5) —
a
where client assets are returned to a person other than the client, for “client” substitute “claimant”; and
b
where the claimant is the investment bank, for “relinquishes control over the assets for the benefit of the client” substitute “takes full title to the assets for its benefit”.
Objective 1 – distribution of client assets
11
1
If the administrator thinks it necessary in order to expedite the return of client assets, the administrator may set a bar date for the submission of —
a
claims to the beneficial ownership, or other form of ownership, of the client assets; or
b
claims of persons in relation to a security interest asserted over, or other entitlement to, those assets.
2
Claims under paragraph (1) include claims that are contingent or disputed.
3
In setting a bar date, the administrator must allow a reasonable time after notice of the special administration has been published (in accordance with insolvency rules) for persons to be able to calculate and submit their claims.
4
Where the administrator sets a bar date —
a
the administrator shall return client assets in accordance with the procedure set down by insolvency rules; but
b
no client assets shall be returned after the bar date has been set without the approval of the court in accordance with the procedure set down in insolvency rules.
5
Where the administrator, after setting a bar date, has returned client assets, if the administrator then receives a late claim of a type described in paragraph (1) in respect of assets that have been returned —
a
there shall be no disruption to those client assets that have already been returned;
b
the person to whom the assets have been returned acquires good title to them as against the late-claiming claimant,
and insolvency rules shall prescribe how the late claim is to be treated by the administrator.
6
The restrictions in paragraph (5) shall not apply where —
a
the client assets were returned to a person (“P”) by the administrator in bad faith in which P was complicit; or
b
P is later found to have made a false claim to those assets.
7
In this regulation, “bar date” means a date by which claims as described in paragraph (1) must be submitted.
8
This regulation does not apply to client assets received or held, or which should have been held, by the investment bank in accordance with rules made by virtue of section 139 of FSMA (clients’ money).
Objective 1 - shortfall in client assets held in omnibus account
12
1
This regulation applies if —
a
the administrator becomes aware that there is a shortfall in the amount available for distribution of securities of a particular description held by the investment bank as client assets in a client omnibus account;
b
the shortfall cannot be remedied following the resolution of on-going disputes; and
c
the assets in question are not ones which are received or held, or should have been held, by the investment bank in accordance with rules made by virtue of section 139 of FSMA (clients’ money).
2
The administrator, in making the distribution, shall ensure (subject to the treatment of late claims as described in regulation 11(5)) that the shortfall referred to in paragraph (1) be borne pro rata by all clients for whom the investment bank holds securities of that particular description in that same account in proportion to their beneficial interest in those securities.
3
A person (including the investment bank) (“a security holder”) with a security interest over securities held in the client omnibus account on behalf of a particular client shall be entitled to participate in distributions and shortfall claims in respect of those securities in accordance with their entitlement as against that client (subject to the treatment of late claims as described in regulation 11(5)).
4
Security holders shall not, at any time, be entitled to claim in aggregate in excess of the distribution which the client would have been entitled to if there had been no claim by that client.
5
Any reduction of the client’s beneficial interest as a result of the application of paragraph (2) shall limit correspondingly the rights of the security holder in respect of the distribution, (but this shall not affect the right of the security holder in respect of the client’s shortfall claim as described in paragraph (7)).
6
Where there is a dispute between persons as to their respective share of a distribution, the administrator may —
a
make the distribution in accordance with an agreement drawn up between the parties in dispute; or
b
lodge the securities that are the subject of the dispute with the court,
and if the administrator pursues either course of action, the administrator’s obligations in respect of Objective 1 with regard to these securities shall be deemed to be discharged.
7
The shortfall borne by a client under paragraph (2) is that client’s shortfall claim against the investment bank (“shortfall claim”) and shall rank as an unsecured claim.
8
The value of a client’s shortfall claim shall be based on the market price for those securities to which the shortfall claim relates on the date the investment bank entered special administration or, if that is not a business day, on the last business day prior to the investment bank entering special administration.
9
In this regulation —
“client omnibus account” means an account held by the investment bank, or another institution in the name of the investment bank, made up of multiple accounts of clients of the investment bank;
“distribution” means the return of client assets that are securities of a particular description;
“market price” means —
the value of the securities on the day in question as determined by a reputable source used by the investment bank, immediately prior to the investment bank entering special administration, for valuing or reporting in respect of those securities; or
if this is not practicable, the value of those securities on the day in question as determined by the administrator which reflects, in the administrator’s opinion, a fair and reasonable price for those securities; and
“securities of a particular description” means securities issued by the same issuer which are of the same class of shares or stock; or in the case of securities other than shares or stock, which are of the same currency and denomination and treated as forming part of the same issue.
Objective 2 – engaging with market infrastructure bodies and the Authorities
13
1
The administrator shall work with —
a
a market infrastructure body to —
i
facilitate the operation of that body’s default rules or default arrangements,
ii
resolve issues arising from the operation of those rules or arrangements, and
iii
facilitate the settlement or prompt cancellation of non-settled market contracts or, as the case may be, of unsettled settlement instructions; and
b
the Authorities, to facilitate any actions the Authorities propose to take to minimise the disruption of businesses and the markets as a consequence of a special administration order being made in respect of the investment bank.
2
In paragraph (1), “work with” means to —
a
comply, as soon as reasonably practicable, with a written request from such a body or from any of the Authorities for the provision of information or the production of documents (in hard copy or in electronic format) relating to the investment bank;
b
allow that body or any of the Authorities, on reasonable request, access to the facilities, staff and premises of the investment bank for the purposes set out in paragraph (1),
but no action need be taken in accordance with this paragraph to the extent that, in the opinion of the administrator, such action would lead to a material reduction in the value of the property of the investment bank.
3
In the event that the administrator receives a request under paragraph (2) from a market infrastructure body based overseas, no action needs to be taken in accordance with paragraph (2) if that request conflicts with a request from any of the Authorities.
4
Where a market infrastructure body has made a request of the type referred to in paragraph (2), that body shall provide the administrator with such information as the administrator may reasonably require in pursuit of Objective 2.
5
Under this regulation a person or body shall not be required to provide any information —
a
which they would be entitled to refuse to provide on grounds of legal professional privilege in proceedings in the High Court or on grounds of confidentiality of communications in the Court of Session; or
b
if such provision by the body holding it would be prohibited by or under any enactment.
6
In this regulation —
“default arrangements” has the meaning set out in regulation 2(1) of the Financial Markets and Insolvency (Settlement Finality) Regulations 1999 ; and
“default rules” has the meaning set out in section 188 of the Companies Act 1989 .
Continuity of supply
14
1
This regulation applies where, before the commencement of special administration, the investment bank had entered into arrangements with a supplier for the provision of a supply to the investment bank.
2
After the commencement of special administration, the supplier —
a
shall not terminate a supply unless —
i
any charges in respect of the supply, being charges for a supply given after the commencement of special administration, remain unpaid for more than 28 days,
ii
the administrator consents to the termination, or
iii
the supplier has the permission of the court, which may be given if the supplier can show that the continued provision of the supply shall cause the supplier to suffer hardship; and
b
shall not make it a condition of a supply, or do anything which has the effect of making it a condition of the giving of a supply, that any outstanding charges in respect of the supply, being charges for a supply given before the commencement of special administration, are paid.
3
Where, before the commencement of special administration, a contractual right to terminate a supply has arisen but has not been exercised, then, for the purposes of this regulation, the commencement of special administration shall cause that right to lapse and the supply shall only be terminated if a ground in paragraph (2)(a) applies.
4
Any provision in a contract between the investment bank and the supplier that purports to terminate the agreement if any action is taken to put the investment bank into special administration is void.
5
Any expenses incurred by the investment bank on the provision of a supply after the commencement of special administration are to be treated as necessary disbursements in the course of the special administration.
6
In this regulation —
“accredited network provider” means a person accredited with a relevant system who operates a secure data network through which the investment bank communicates with the relevant system;
“commencement of special administration” means the making of the special administration order;
“relevant system” has the meaning set out in regulation 2(1) of the Uncertificated Securities Regulations 2001 ;
“sponsoring system participant” has the meaning set out in regulation 3 of the Uncertificated Securities Regulations 2001 (in the definition of “system participant”);
“supplier” means the person controlling the provision of a supply to the investment bank under a licence, sub-licence or other arrangement, and includes a company that is a group undertaking (within the meaning of section 1161(5) of the Companies Act 2006) in respect of the investment bank, but does not include market infrastructure bodies; and
“supply” means a supply of —
computer hardware or software or other hardware used by the investment bank in connection with the trading of securities or derivatives;
financial data;
infrastructure permitting electronic communication services;
data processing;
secure data networks provided by an accredited network provider; or
access to a relevant system by a sponsoring system participant,
but does not include any services provided for in the contract between the investment bank and the supplier beyond the provision of the supply.
General powers, duties and effect
15
1
Without prejudice to any specific powers conferred on an administrator by these Regulations, an administrator may do anything necessary or expedient for the pursuit of the special administration objectives.
2
The administrator is an officer of the court.
3
The following provisions of this regulation provide for —
a
general powers and duties of administrators (by application of provisions about administrators in Schedule B1 administration); and
b
the general process and effect of special administration (by application of provisions about Schedule B1 administration).
4
The provisions of Schedule B1 and other provisions of the Insolvency Act set out in the Tables apply in relation to special administration as in relation to other insolvency proceedings with the modifications set out —
a
in paragraph (5) (in respect of the provisions listed in Table 1);
b
in paragraph (6) (in respect of the provisions listed in Table 2),
and any other modification specified in the Tables.
5
The modifications in respect of the provisions referred to in Table 1 are that —
a
a reference to the administrator is a reference to the administrator appointed under a special administration order;
b
a reference to administration is a reference to special administration;
c
a reference to an administration order is a reference to a special administration order;
d
a reference to a company is a reference to an investment bank;
e
a reference to the purpose of administration is a reference to the special administration objectives; and
f
a reference to a provision of the Insolvency Act is a reference to that provision as applied by this regulation.
6
The modifications in respect of the provisions referred to in Table 2 are that —
a
a reference to the liquidator is a reference to the administrator appointed under a special administration order;
b
a reference to winding up is a reference to special administration;
c
a reference to winding up by the court is a reference to the imposition of special administration by order of the court;
d
a reference to being wound up under Part 4 or 5 of the Insolvency Act is a reference to an investment bank being in special administration;
e
a reference to the commencement of winding up is a reference to the commencement of special administration;
f
a reference to going into liquidation is a reference to entering special administration;
g
a reference to liquidation or to insolvent liquidation is a reference to special administration;
h
a reference to a winding up order is a reference to a special administration order;
i
a reference to a company is a reference to an investment bank; and
j
a reference to a provision of the Insolvency Act is a reference to that provision as applied by this regulation.
Table 1: Applied provisions: Schedule B1
Schedule B1 Subject Modification or comment
Para 40(1)(a) Dismissal of pending winding up petition Para 42 Moratorium on insolvency proceedings Sub-paragraphs (4)(a) and (4)(aa) are not applied.
Para 43 Moratorium on other legal processes Para 44(1) and (5) Interim moratorium Para 45 Publicity Para 46 Announcement of administrator’s appointment
In sub-paragraph (3)(a), in addition to obtaining the list of creditors, the administrator shall also obtain as complete a list as possible of the clients of the investment bank.
In sub-paragraph (3)(b), the administrator shall send a notice of their appointment to each client of whose claim and address the administrator is aware.
Where the special administration application has not been made by the FSA, notice of the administrator’s appointment shall also be sent under sub-paragraph (5) to the FSA.
Sub-paragraphs (6)(b) and (c) are not applied.
Para 47 Statement of company’s affairs In sub-paragraph (2), the statement must also include particulars (to the extent prescribed) of the client assets held by the investment bank. Para 48 Statement of company’s affairs Para 49 Statement of proposals Paragraphs 49(1) to (3), 51, 53, 54 and 55 do not apply where the FSA gives a direction under regulation 16 and the direction has not been withdrawn: see regulations 16 - 19.
Para 49
Sub-paragraph (2)(b) is not applied.
Under sub-paragraph (4), the administrator shall also send a copy of the statement of proposals to —
every client of whose claim the administrator is aware and has a means of contacting; and
the FSA.
The administrator shall also give notice in the prescribed manner that the statement of proposals is to be provided free of charge to a market infrastructure body who applies in writing to a specified address.
Para 50 Creditors’ meeting
In sub-paragraph (1), the administrator shall also summon the clients referred to in paragraph 49(4) to the meeting of creditors and such clients shall be given the prescribed period of notice under sub-paragraph (1)(b).
The FSA may appoint a person to attend a meeting of creditors and make representations as to any matter for decision.
Para 51 Requirement for initial creditors’ meeting
Each copy of an administrator’s proposals sent to a client under paragraph 49 shall be accompanied by an invitation to the initial creditors’ meeting.
The administrator’s proposals sent to the FSA must also be accompanied by an invitation to the initial creditors’ meeting.
Para 53 Business and result of initial creditors’ meeting
Insolvency rules shall prescribe how clients shall vote at meetings of creditors.
Under sub-paragraph (2), if the FSA has not appointed a person to attend the meeting, the administrator must also report any decision taken to the FSA.
Para 54 Revision of administrator’s proposals
If the revision proposed by the administrator affects both creditors and clients, then every reference in paragraph 54 to creditors includes clients.
If the administrator thinks that the revision proposed only affects either creditors or clients, then this paragraph only applies to the affected party, however the party not affected must be informed of the revision in a manner prescribed in insolvency rules.
The FSA must be invited to the creditors’ meeting mentioned in sub-paragraph (2)(a).
The statement of the proposed revision mentioned in sub-paragraph (2)(b) must also be sent to the FSA.
Para 55 Failure to obtain approval of administrator’s proposals
In making an order under sub-paragraph (2) the court must have regard to the special administration objectives.
Sub-paragraph (2)(d) is not applied.
Para 56 Further creditors’ meetings The FSA must be invited to any meeting summoned under this paragraph.
Para 57 Creditors’ committee
A creditors’ committee can only be established by a creditors’ meeting to which creditors and clients have both been given notice.
The FSA may appoint a person to attend a meeting of the creditors’ committee and make representations as to any matter for decision.
Insolvency rules shall ensure that, where a meeting of creditors resolves to establish a creditors’ committee, the makeup of the creditors’ committee is a reflection of all parties with an interest in the achievement of the special administration objectives.
Para 58 Correspondence instead of creditors’ meeting Para 59 Functions of an administrator Para 60 (and Schedule 1 to the Insolvency Act) General powers Certain powers in Schedule 4 of the Insolvency Act are also applied (see Table 2). Para 61 Directors Para 62 Power to call meetings The administrator may also call a meeting of clients or contributories. Para 63 Application to court for directions Para 64 Management powers Para 65 Distribution to creditors Sub-paragraph (3) is not applied.
Para 66 Payments Para 67 Property Para 68 Management In this paragraph, references to proposals approved under paragraphs 53 or 54 include —
proposals agreed with the FSA under regulations 17 or 18; or
proposals in respect of which the court has made an order dispensing with the need for agreement in accordance with those regulations,
without need for approval.
Para 69 Agency Para 70 Floating charge Para 71 Fixed charge Para 72 Hire purchase property Para 73 Protection for secured or preferential creditors Sub-paragraph (2)(d) is not applied. Para 74 Challenge to administrator’s conduct
The FSA may also make an application under this paragraph on the grounds that —
the administrator is acting or has acted so as unfairly to harm the interests of some or all of the members, creditors or clients; or
the administrator is proposing to act in a way which would unfairly harm the interests of some or all of the members, creditors or clients.
A client may also make an application under sub-paragraph (1) or (2).
Where the FSA has given a direction under regulation 16 which has not been withdrawn, an order may not be made under this paragraph if it would impede or prevent compliance with the direction.
Any of the following persons may make an application under this paragraph on the grounds that the administrator is not taking any action in response to a request from that person under regulation 13(2) and that the person is of the opinion that the action requested would not lead to a material reduction in the value of the property of the investment bank —
the Bank of England,
the Treasury,
the FSA, or
a market infrastructure body.
Para 75 Misfeasance A client and the FSA shall be included in the list of persons who may make an application under sub-paragraph (2). Para 79 Court ending administration on application of administrator Sub-paragraph (2) is not applied.
See regulation 20
Para 81 Court ending administration on application of a creditor This paragraph is not applied where the administrator was appointed by the court on the application of the FSA or the Secretary of State. Para 84 Termination: no more assets for distribution
The administrator shall only send a notice under sub-paragraph (1) if the investment bank no longer holds client assets.
In sub-paragraph (5), a copy of the notice should also be sent to every client of the investment bank of whom the administrator is aware and the FSA.
See regulation 21
Para 85 Discharge of administration order Para 86 Notice to Companies Registrar at the end of administration Para 87 Resignation
Where the administrator was appointed by the court on the application of the FSA or the Secretary of State, the notice of the resignation given in accordance with sub-paragraph (2)(a) must be also given to the applicant.
Sub-paragraphs (2)(b) to (d) are not applied.
Para 88 Removal Para 89 Disqualification
Where the administrator was appointed by the court on the application of the FSA or the Secretary of State, the notice given in accordance with sub-paragraph (2)(a) must be also given to the applicant.
Sub-paragraphs (2)(b) to (d) are not applied.
Para 90 Replacement The reference to paragraphs 91 to 95 is to paragraph 91. Para 91 Replacement The FSA is added to the list of persons who may make an application to appoint an administrator but to whom the restrictions in sub-paragraph (2) apply.
Para 98 Discharge Sub-paragraphs (2)(b) and (3) are not applied. Para 99 Vacation of office: charges and liabilities
In sub-paragraph (3), the former administrator’s remuneration and expenses incurred in respect of the pursuit of Objective 1 will be charged on and payable out of the client assets.
In sub-paragraph (4)(b), the reference to any charge arising under sub-paragraph (3) does not include a charge on client assets.
Para 100 Joint administrators Para 101 Joint administrators In sub-paragraph (3), the reference to paragraphs 87 to 99 is to paragraphs 87 to 91 and 98 to 99. Para 102 Joint administrators Para 103 Joint administrators
In sub-paragraph (2), the reference to paragraph 12(1)(a) to (e) is to regulation 5(1).
Sub-paragraphs (3) to (5) are not applied.
Para 104 Presumption of validity Para 105 Majority decision of directors Para 106 (and section 430 of and Schedule 10 to the Insolvency Act) Fines Sub-paragraphs (2)(a), (2)(b) and (2)(l) to (2)(n) are not applied. Para 107 Extension of time limit In considering an application under paragraph 107, the court must have regard to the special administration objectives. Para 108 Extension of time limit
To obtain consent under this paragraph, the administrator must also obtain consent of those clients whose claims amount to more than 50% of the total amount of claims for client assets, disregarding the claims of those clients who were sent a copy of the statement of proposals but who did not respond to an invitation to give or withhold consent.
Sub-paragraph (3) is not applied.
Para 109 Extension of time limit Para 111 Interpretation The definition of “administrator” and sub-paragraph (1A)(b) and (c) and sub-paragraph (1B) are not applied. Paras 112- 116 Scotland
Table 2: Applied provisions: other provisions of the Insolvency Act
Insolvency Act Subject Modification or comment
Sections 74 and 76- 83
Contributories Section 167 (and Schedule 4) Powers of the liquidator
In subsections (1) and (2), references to “liquidation committee” is to “creditors’ committee”.
A client may also apply to the court under subsection (3).
In Schedule 4, paragraphs 4 to 10 and 12 shall not apply, and in paragraph 13, the reference to “winding up the company’s affairs and distributing its assets” is to “pursuing the special administration objectives”.
Section 168(4) Discretion in managing and distributing assets Section 176 Preferential charges on goods distrained Section 176A Unsecured creditors Section 178 Disclaimer of onerous property Section 179 Disclaimer of leaseholds Section 180 Land subject to rent charge Section 181 Disclaimer: powers of court Section 182 Powers of court (leaseholds) Section 183 Effect of execution or attachment (England and Wales) Subsection (2)(a) is not applied. Section 184 Duties of officers In subsection (1), ignore the reference to a resolution having been passed for voluntary winding up. Section 185 Effect of diligence (Scotland) In the application of section 37(1) of the Bankruptcy (Scotland) Act 1985 (c. 66) , the reference to an order of the court awarding winding up is a reference to the making of the special administration order. Section 186 Rescission of contracts by the court Section 187 Power to make over assets to employees Section 193 Unclaimed dividends (Scotland) Section 194 Resolutions passed at adjourned meetings Section 196 Judicial notice of court documents Section 197 Commission for receiving evidence Section 198 Court order for examination of persons in Scotland Section 199 Costs of application for leave to proceed (Scottish companies) Section 206 Fraud in anticipation of winding up In subsection (1), omit the reference to passing a resolution for voluntary winding up. Section 207 Transactions in fraud of creditors In subsection (1), omit the reference to passing a resolution for voluntary winding up. Section 208 Misconduct in course of winding up In subsection (1), omit “whether by the court or voluntarily”. Section 209 Falsification of company’s books Section 210 Material omissions from statement
In subsection (1) omit “whether by the court or voluntarily”.
In subsection (2), omit “or has passed a resolution for voluntary winding up”.
Section 211 False representation to creditors In subsection (1) —
omit “whether by the court or voluntarily”; and
a reference to the company’s creditors includes a reference to clients of the investment bank.
Section 212 Summary remedy Section 213 Fraudulent trading Section 214 Wrongful trading Subsection (6) is not applied.
Section 215 Proceedings under section 213 or 214 Section 216 Restriction on re-use of company names
The reference to “liquidating company” shall be to “company in special administration”.
Subsections (7) and (8) are not applied.
Section 217 Personal liability for debts following contravention of section 216 Subsection (6) is not applied. Section 218 Prosecution of delinquent officers and members of company
In subsection (3), ignore the first reference to the official receiver and treat the second reference as a reference to the Secretary of State.
In subsection (5) treat the reference to subsection (4) as a reference to subsection (3).
Subsections (4) and (6) are not applied.
Section 219 Obligations arising under section 218 Treat the reference to section 218(4) in subsection (1) as a reference to section 218(3). Section 233 Utilities Section 234 Getting in the company’s property
Subsection (1) is not applied.
“Office holder” means the administrator.
Section 235 Co-operation with the administrator
Subsections (1) and (4)(b) to (d) are not applied.
“Office holder” means the administrator.
Section 236 Inquiry into company’s dealings
Subsection (1) is not applied.
“Office holder” means the administrator.
Section 237 Enforcement by the court Section 238 Transactions at an undervalue (England and Wales) Section 239 Preferences (England and Wales) Section 240 Sections 238 and 239: relevant time
In subsection (2)(a), the reference to being unable to pay its debts has the meaning given by regulation 2.
Sub-paragraphs (1)(d) and (3)(a) to (d) are not applied.
Section 241 Orders under sections 238 and 239 Subsections (3A) and (3B) are not applied. Section 242 Gratuitous alienations (Scotland) Section 243 Unfair preferences (Scotland) Section 244 Extortionate credit transactions Section 245 Avoidance of floating charges
In subsection (3)(c), the reference to —
administration application is to be read as an application for special administration, and
administration order is to a special administration order.
In subsection (4)(a) and (b),the reference to being unable to pay its debts has the meaning given by regulation 2.
Subsections (3)(d) and (5)(a) to (c) are not applied.
Section 246 Unenforceability of liens
Subsection (1) is not applied.
“Office holder” means the administrator.
Section 246A Remote attendance at meetings Treat every reference to creditors as including clients. Section 246B Use of websites Section 386 (and Schedule 6 as read with Schedule 4 to the Pensions Schemes Act 1993) Preferential debts Section 387, subsections (1) and (3A). “The relevant date” Treat the reference to “administration” as a reference to special administration. Section 389 Offence of acting without being qualified
Treat the reference to acting as an insolvency practitioner as a reference to acting as the administrator.
Subsections (1A) and (2) are not applied.
Section 390 Persons not qualified to act Treat references to acting as insolvency practitioner as references to acting as the administrator. Section 391 Recognised professional bodies An order under section 391 has effect in relation to any provision applied for the purposes of special administration. Section 411 Insolvency rules The reference in subsections (1A), (2C) and (3) to Part 2 of the Banking Act 2009 includes a reference to these Regulations.
Section 414 Fees orders
The reference in subsection (1) to “Parts I to VII of this Act” includes these Regulations.
Ignore the reference to the official receiver.
Section 423 Transactions defrauding creditors Subsection (4) is not applied.
Sections 424 and 425 Transactions defrauding creditors Section 426 Co-operation between courts References to “insolvency law” includes provisions made by or under these Regulations. Sections 430 and 431 (and Schedule 10) Offences Section 432 Offences by bodies corporate In subsection (4) ignore all the provisions of the Insolvency Act listed there except for sections 206 to 211. Section 433 Statements: admissibility In subsection (1)(a), a statement of affairs prepared “for the purposes of any provision of this Act” includes any statement made for the purposes of a provision of that Act as applied by these Regulations. Sections 434B – 434D Supplementary provisions
FSA direction
16
1
The FSA may direct the administrator to prioritise one or more special administration objectives.
2
A direction under paragraph (1) may only be given if the FSA is satisfied that the giving of the direction is necessary, having regard to the public interest in —
a
the stability of the financial systems of the United Kingdom; or
b
the maintenance of public confidence in the stability of the financial markets of the United Kingdom.
3
A direction under paragraph (1) must be given in writing and should set out reasons for giving the direction.
4
Before giving such a direction the FSA must consult the Treasury and the Bank of England.
5
If the FSA thinks that the circumstances that gave rise to the need for it to give a direction have passed, it shall withdraw its direction.
6
Paragraphs 49(1) to (3), 51, 53, 54 and 55 of Schedule B1 (as applied by regulation 15) shall not apply where the FSA has given a direction under this regulation and the direction has not been withdrawn .
Administrator’s proposals in the event of FSA direction
17
1
Where the FSA has given a direction under regulation 16, the administrator shall make a statement setting out proposals for achieving the special administration objectives in accordance with the FSA’s direction.
2
The statement under paragraph (1) must deal with such matters as may be prescribed and may include —
a
a proposal for a voluntary arrangement under Part 1 of the Insolvency Act (although this regulation is without prejudice to section 4(3) of that Act); or
b
a proposal for a compromise or arrangement to be sanctioned under Part 26 of the Companies Act 2006 (arrangements and reconstructions).
3
The statement shall be agreed with the FSA.
4
If the administrator is unable to agree the statement with the FSA, the administrator may apply to the court for directions under paragraph 63 of Schedule B1 (as applied by regulation 15).
5
Following an application under sub-paragraph (4), the court may —
a
make an order dispensing with the need for agreement;
b
adjourn the hearing conditionally or unconditionally; or
c
make any other order that the court thinks appropriate.
6
The court may make an order under sub-paragraph (5)(a) only if it considers that the proposals set out in the statement are reasonably likely to ensure that the administrator acts in accordance with the FSA’s direction.
7
Where the court makes an order, the administrator shall as soon as possible send a copy of the order to the registrar of companies.
8
After —
a
the statement has been agreed with the FSA; or
b
the court has made an order dispensing with the need for agreement,
paragraph 49(4) to (8) of Schedule B1 (as applied by regulation 15) shall then apply to the statement, but the administrator need not send the FSA a copy of the statement of proposals.
9
Where, before the FSA gives its direction under regulation 16, a meeting of creditors has approved the statement of proposals in accordance with paragraph 53 of Schedule B1 (as applied by regulation 15), that statement of proposals shall be ignored for the purposes of regulation 16, this regulation and paragraph 68 of Schedule B1 (as applied by regulation 15).
Revision of proposals in the event of FSA direction
18
1
This regulation applies where —
a
the administrator’s statement of proposals under regulation 17 has been agreed with the FSA (or the court has made an order dispensing with the need for agreement);
b
the administrator proposes a revision to the proposals;
c
the administrator thinks the revision is substantial; and
d
the FSA has not withdrawn its direction given under regulation 16.
2
The administrator shall agree the revised statement with the FSA.
3
Regulation 17(4) to (7) shall apply where the administrator is unable to agree the revised statement with the FSA.
4
After the revised statement has been agreed with the FSA (or the court has made an order dispensing with the need for agreement) the administrator shall send the revised statement to —
a
every creditor of the investment bank of whose claim and address the administrator is aware;
b
every client of the investment bank of whose claim the administrator is aware and has a means of contacting;
c
every member of the investment bank of whose address the administrator is aware.
5
The administrator shall be taken to have complied with paragraph (4)(c) if the administrator publishes a notice undertaking to provide a copy of the revised statement free of charge to any member of the investment bank who applies in writing to a specified address.
6
A notice under paragraph (5) shall be published in the prescribed manner and within the prescribed period.
7
The administrator shall send a copy of the revised statement to —
a
the court; and
b
the registrar of companies.
FSA direction withdrawn
19
1
This regulation applies if, after the administrator’s statement of proposals has been agreed with the FSA or the court has made an order dispensing with the need for agreement under regulation 17, the FSA’s direction is then withdrawn.
2
If the administrator proposes a revision to the statement of proposals and the administrator thinks that the proposed revision is substantial, then paragraphs 54 and 55 of Schedule B1 (as applied by regulation 15) apply.
Successful rescue
20
1
This regulation applies if the administrator has pursued the first part of Objective 3 (as set out in regulation 10(1)(c)(i)) and thinks that it has been sufficiently achieved.
2
The administrator shall make an application under paragraph 79 of Schedule B1 (as applied by regulation 15).
3
An administrator who makes an application in accordance with paragraph (2) must send a copy to the FSA.
Dissolution or voluntary arrangement
21
1
This section applies if —
a
the administrator believes that Objectives 1 and 2 have been sufficiently achieved, and
b
the administrator pursues the second part of Objective 3 (as set out in regulation 10(1)(c)(ii)).
2
The administrator may —
a
give a notice which is to be treated as a notice under paragraph 84 of Schedule B1 (as applied by regulation 15); or
b
make a proposal in accordance with Part 1 of the Insolvency Act (company voluntary arrangement).
3
Part 1 of the Insolvency Act shall apply to a proposal made by an administrator with the following modifications.
4
In section 3 (summoning of meetings), subsection (2) (and not (1)) applies.
5
The action that may be taken by a court under section 5(3) (effect of approval) includes suspension of the special administration order.
6
On the termination of a company voluntary arrangement the administrator may apply to the court to lift the suspension of the special administration order.
7
For the purposes of this regulation, references in Part 1 of the Insolvency Act to “administration” include special administration.
Special administration order as an alternative order
22
1
On a petition for a winding up order or an application for an administration order in respect of an investment bank the court may instead make a special administration order.
2
Paragraph (1) is subject to regulation 3.
3
A special administration order may be made under paragraph (1) only on the application of the FSA.
Disqualification of directors
23
1
In the Disqualification Act —
a
a reference to liquidation includes a reference to special administration;
b
a reference to the winding up of a company includes a reference to an investment bank being subject to a special administration order;
c
a reference to becoming insolvent includes a reference to becoming subject to a special administration order; and
d
a reference to a liquidator includes a reference to an administrator.
2
Section 6(2) is not applied.
3
For the purpose of the application of section 7(3) of the Disqualification Act (disqualification order or undertaking) to an investment bank which is in special administration, the responsible office-holder is the administrator.
4
In section 21 of the Disqualification Act (interaction with the Insolvency Act), the references to the provisions of the Insolvency Act include those provisions as applied by these Regulations.
Limited liability partnerships
24
Where an investment bank is formed as a limited liability partnership, Schedule 3 (application of these Regulations to limited liability partnerships) has effect.
Partnerships
25
1
Where an investment bank is formed as a partnership, Schedule 4 (application of these Regulations to partnerships) has effect.
2
This regulation does not apply to investment banks formed as a partnership constituted under the law of Scotland.
Northern Irish equivalent enactments
26
1
In the application of these Regulations to Northern Ireland, a reference to an enactment is to be treated as a reference to the equivalent enactment having effect in relation to Northern Ireland (“equivalent Northern Ireland enactment”).
2
The table in Schedule 5 shows the enactments referred to in these Regulations together with the equivalent Northern Ireland enactments.
3
Where these Regulations provide for an enactment to apply with an amendment or modification, the equivalent Northern Ireland enactment is to apply with an equivalent amendment or modification (with any necessary modification being made and subject to what is said in relation to that enactment in the third column of the table in Schedule 5).
Modifications and consequential amendments to legislation
27
Schedule 6 (modifications and consequential amendments) applies as follows —
a
Parts 1 and 2 apply in relation to a case where an investment bank which is a company is in special administration; and
b
Part 3 makes amendments to legislation in consequence of these Regulations.
Brooks Newmark
Angela Watkinson
Two of the Lords Commissioners of Her Majesty’s Treasury
7th February 2011


type: legislation

jurisdiction: UK

text:
Citation and commencement
1
This Order may be cited as the Terrorist Asset-Freezing etc. Act 2010 (Overseas Territories) Order 2011 and shall come into force on 31st March 2011.
Extent and Interpretation
2
1
This Order shall extend to the territories listed in Schedule 1.
2
In the application of this Order to any of the said territories —
a
“the Territory” means that territory; and
b
any reference to “the Governor” means the Governor or other officer administering the Government of that territory.
Extension of Act to territories
3
1
Schedule 2 of this Order sets out Part 1 (including Part 1 of Schedule 2) of the Terrorist Asset-Freezing etc. Act 2010 (the “Act”) as modified in its application to the territories listed in Schedule 1.
2
In its application to the Sovereign Base Areas of Akrotiri and Dhekelia the Act, shall additionally be subject to the modifications specified in Schedule 3 hereto.
Exercise of powers of the Governor
4
The Governor may, to such extent and subject to such restrictions and conditions as he may think proper, delegate, or authorise the delegation of, any of his powers under this Order to any person, or class or description of persons, approved by him, and references in this Order to the Governor shall be construed accordingly.
Judith Simpson
Clerk of the Privy Council


text:
Citation and commencement
1
This Order may be cited as the Nursing and Midwifery Council (Fees and Education, Registration and Registration Appeals) (Amendment) Rules Order of Council 2011 and comes into force on 7th November 2011.
Council approval
2
Their Lordships, having taken these Rules into consideration, are pleased to and do approve them.
Judith Simpson
Clerk of the Privy Council


text:
Citation and commencement
1
These Regulations may be cited as the Police Act 1996 (Equipment) Regulations 2011 and shall come into force on 4th March 2011.
Requirements as to design and performance of equipment
2
Subject to regulation 3 —
a
the design and performance standards of equipment provided or used for police purposes which falls within the scope of the relevant national framework arrangement referred to in the Schedule to these Regulations shall comply with the specifications for that equipment contained in that agreement;
b
a police force shall use equipment which falls within the scope of the relevant national framework arrangement referred to in the Schedule to the Regulations only if it has been acquired in accordance with the procedures set out in that agreement.
Transitional provision
3
Where on the date these Regulations come into force a contractual commitment has already been entered into to acquire the specified equipment for police purposes, regulation 2 shall not apply until the contractual arrangements in question expire or are otherwise terminated in accordance with their terms.
Nick Herbert
Minister of State
Home Office
9th February 2011


text:
Citation and commencement
1
This Order may be cited as the Childcare (Exemptions from Registration) (Amendment) Order 2011 and comes into force on 1st April 2011.
Amendments to the Childcare (Exemptions from Registration) Order 2008
2
1
Article 3 of the Childcare (Exemptions from Registration) Order 2008 is amended as follows.
2
In paragraph (1) —
a
at the end of sub-paragraph (b), omit “or”;
b
at the end of sub-paragraph (d), insert “; or”; and
c
after sub-paragraph (d), insert —
e
for a child who is placed with a local authority foster parent (“the child’s foster parent”), where the person making the provision is a relevant foster parent who is not the child’s foster parent.
.
3
After paragraph (1), insert —
2
In paragraph (1)(e) —
“local authority foster parent” has the same meaning as in section 22C(12) of the Children Act 1989 ; and
“relevant foster parent” means a person who is approved as a foster parent under the Fostering Services (England) Regulations 2011 .
.
Tim Loughton
Parliamentary Under Secretary of State
Department for Education
3rd March 2011


text:
PART 1 General
Citation and commencement
1
These Regulations —
a
may be cited as the Environmental Permitting (England and Wales) (Amendment) Regulations 2011; and
b
come into force on 1st October 2011, except regulations 2, 3, 12 and 14 which come into force on the day after the day on which these Regulations are made.
Interpretation
2
In these Regulations —
a
“the 2010 Regulations ” means the Environmental Permitting (England and Wales) Regulations 2010 ; and
b
“ the Act ” means the Radioactive Substances Act 1993 .
PART 2 Amendments to the 2010 Regulations
Amendment of the Environmental Permitting (England and Wales) Regulations 2010
3
The 2010 Regulations are amended in accordance with regulations 4 to 15.
Amendment of regulation 2 (interpretation: general)
4
1
Paragraph (1) of regulation 2 (interpretation: general) is amended as follows.
2
In the definition of “radioactive material”, for “paragraph 2” substitute “paragraph 3”.
3
In the definition of “radioactive substances activity”, for “paragraph 5” substitute “paragraph 11”.
4
After the definition of “radioactive substances activity”, insert —
“radioactive substances exemption” means an exemption under Part 7 of Schedule 23 from the requirement for an environmental permit in respect of a radioactive substances activity;
.
5
In the definition of “radioactive waste”, for “paragraph 4” substitute “paragraph 3”.
6
In the definition of “waste”, for “paragraph (4)” substitute “paragraph (5) where it applies”.
7
For paragraph (4) substitute —
4
Paragraph (5) applies where a person (“A”) —
a
carries on a radioactive substances activity described in paragraph 11(2)(b) or (c) or (4) of Part 2 of Schedule 23 in respect of radioactive waste;
b
is exempt under regulation 12(3) from the requirement for an environmental permit in respect of that activity and that waste (“the relevant exemption”); and
c
the waste (“the applicable radioactive waste”) is —
i
NORM waste (as that term is defined in Part 7 of Schedule 23); or
ii
the waste described in the first, second or sixth row of column 1 of table 6 in Part 7 of Schedule 23.
.
8
After paragraph (4), insert —
5
Where this paragraph applies, for so long as the relevant exemption applies to A, the applicable radioactive waste must be treated for the purposes of these Regulations as if it were waste other than radioactive waste.
.
Amendment of regulation 5 (interpretation: exempt facilities)
5
In paragraph (1) of regulation 5 (interpretation: exempt facilities), for the definition of “exempt groundwater activity”, substitute —
“exempt groundwater activity” means —
a stand-alone groundwater activity that meets the requirements of paragraph 5 of Schedule 2; or
a groundwater activity that —
is a groundwater tracer test as defined in paragraph 1 of Part 3 of Schedule 3;
is also a radioactive substances activity by virtue of the using of radioactive material as a part of that test; and
meets the requirements of paragraph 5 of Schedule 2.
.
Amendment of regulation 12 (requirement for an environmental permit)
6
In regulation 12 (requirement for an environmental permit), for paragraph (3) substitute —
3
In respect of a radioactive substances activity, paragraph (1) does not apply to a person to whom a radioactive substances exemption applies for that activity.
4
Paragraph (5) applies to a person (“A”) who —
a
receives radioactive waste from another person (“B”) for the purposes of A disposing of that waste; and
b
subsequently disposes of that waste.
5
Where this paragraph applies, A does not require an environmental permit —
a
for the receipt of waste from B, where B holds an environmental permit which allows B to dispose of the waste to A; or
b
for the subsequent disposal of that waste by A, where the waste is disposed of in accordance with the permit held by B.
.
Amendment of regulation 14 (content and form of an environmental permit)
7
In regulation 14(6)(b) (content and form of an environmental permit), for “paragraph 5(5)” substitute “paragraph 11(5)”.
Amendment of regulation 17 (Single site permits etc. )
8
In regulation 17(3) (single site permits etc.), for “paragraph 5(5)” substitute “paragraph 11(5)”.
Amendment of regulation 67 (Interpretation of Part 7)
9
1
Regulation 67 is amended as follows.
2
After the definition of “2007 transitional application”, insert the following definition —
“article” and “substance” have the meaning given to them in Schedule 23 to these Regulations.
.
3
The definition of “radioactive substances exemption order” is revoked.
Revocation of regulation 72 (Radioactive substances exemption orders)
10
Regulation 72 is revoked.
Insertion of regulations 72A, 72B, 72C and 72D
11
After regulation 71, insert —
Previously excluded radioactive material and radioactive waste
72A
1
Paragraph (3) applies to a person (“A”) who was carrying on an activity (“the continuing activity”) described in paragraph (2) immediately before 1st October 2011 and who continues to carry on the activity on or after that date.
2
The continuing activity referred to in paragraph (1) means an activity carried on by A —
a
in respect of a substance or article which —
i
immediately before 1st October 2011 was not defined as radioactive material or radioactive waste; but
ii
on that date became defined as radioactive material or radioactive waste by virtue of the amendments made to those definitions on that date (“the relevant amendments”);
and
b
which on that date became a radioactive substances activity described in paragraph 11(2), (4) or (5) of Part 2 of Schedule 23 by virtue of the relevant amendments.
3
Where this paragraph applies, A is exempt from the requirement to hold an environmental permit in respect of the continuing activity until the end time set out in regulation 72C.
Previously exempt radioactive substances activities
72B
1
Paragraph (3) applies to a person (“A”) who was carrying on an activity (“the continuing activity”) described in paragraph (2) immediately before 1st October 2011 and who continues to carry on the activity on or after that date.
2
The continuing activity referred to in paragraph (1) means an activity —
a
described in paragraph 11(2), (4) or (5) of Part 2 of Schedule 23; and
b
in respect of which, immediately before 1st October 2011, A was exempted under regulation 72 (as in force at that time) from the requirement to hold an environmental permit (“the existing exemption”).
3
Where this paragraph applies, the existing exemption continues to apply to A until the time set out in paragraph (4), subject to any conditions which applied to that exemption.
4
The time referred to in paragraph (3) is —
a
if A does not become exempt in respect of the continuing activity under a radioactive substances exemption before 1st April 2012, the end time set out in regulation 72C; or
b
if A does become so exempt, the time at which the exemption begins to apply.
End time: regulations 72A and 72B
72C
1
For the purposes of regulations 72A and 72B, the end time is —
a
where, before 1st April 2012, A makes a permit application —
i
if that application is granted, the time of grant;
ii
if that application is refused and —
aa
A appeals against the refusal under regulation 31, the time at which the appeal is determined or withdrawn;
bb
A does not appeal against the refusal, the end of the day which is the final appeal date;
or
b
where no such application is made, the earliest of —
i
1st April 2012;
ii
the time at which A ceases to carry on the continuing activity; or
iii
for the purposes of regulation 72A only, the time a radioactive substances exemption first applies to A in respect of the continuing activity.
2
In paragraph (1) —
“final appeal date” means the last day on which an appeal against a refusal to grant an environmental permit could have been brought under regulation 31, but not including any extension of the time limit for making an appeal allowed by the appropriate authority under paragraph 3(2) of Schedule 6; and
“permit application” means —
an application for an environmental permit under regulation 13 in respect of (as applicable) the continuing activity under regulation 72A or 72B; or
an application under regulation 20 for a variation of an existing environmental permit, in respect of the inclusion in the permit of that continuing activity.”.
Existing radioactive substances permits
72D
1
Paragraph (4) applies to a person (“A”) who was carrying on an activity described in paragraph (2) (“the continuing excluded activity”) or paragraph (3) (“the continuing exempt activity”) immediately before 1st October 2011 and who —
a
continues to carry on that activity after that date; and
b
holds an environmental permit in respect of the activity (“permit A”).
2
The continuing excluded activity referred to in paragraph (1) means an activity which —
a
was a radioactive substances activity immediately before 1st October 2011; but
b
ceases to be such an activity on that date because it was carried on in respect of a substance or article which ceased to be defined as radioactive material or radioactive waste on that date by virtue of the amendments made to the definitions in these Regulations of radioactive material and radioactive waste on that date.
3
The continuing exempt activity referred to in paragraph (1) means an activity —
a
described in paragraph 11(2), 11(4) or 11(5) of Part 2 of Schedule 23 to these Regulations; and
b
in respect of which A —
i
immediately before 1st October 2011, was not exempt under regulation 72 (as it was in force at that time); but
ii
is exempt under a radioactive substances exemption.
4
Where this paragraph applies, subject to paragraph (5), A may surrender any part of permit A that applies to the continuing excluded activity or the continuing exempt activity by notification to the regulator.
5
A notification under paragraph (4) must be made to the regulator on or before 31st March 2012.
6
Regulation 24(3) to (7) applies as if the notification were made under that regulation.
.
Amendment to Schedule 1 (activities, installations and mobile plant)
12
In part 2 of Schedule 1 (activities), after Section 6.9 (intensive farming), insert —
SECTION 6.10
Carbon capture and storage
Part A(1)
Capture of carbon dioxide streams from an installation for the purposes of geological storage pursuant to Directive 2009/31/ EC of the European Parliament and of the Council on the geological storage of carbon dioxide .
.
Amendment to Schedule 5 (environmental permits)
13
In paragraph 5(1)(b) of Part 1 of Schedule 5 (environmental permits), for “paragraph 5(5)” substitute “paragraph 11(5)”.
Amendment to Schedule 22 (groundwater activities)
14
In paragraph 8 of Schedule 22 (groundwater activities for which a permit may be granted), after sub-paragraph (c) insert —
ca
the injection of carbon dioxide streams for storage purposes into geological formations which for natural reasons are permanently unsuitable for other purposes, provided that such injection is made in accordance with Directive 2009/31/EC of the European Parliament and of the Council on the geological storage of carbon dioxide , or excluded from the scope of that Directive pursuant to Article 2(2) of that Directive,
.
Substitution of Schedule 23 (radioactive substances activities)
15
For Schedule 23 (radioactive substances activities), substitute the contents of Schedule 1 (new Schedule 23 to the 2010 Regulations) to these Regulations.
PART 3 Consequential amendments, repeals, savings and revocation
Consequential amendments
16
Schedule 2 (consequential amendments) has effect.
Repeals
17
1
The Act, except for the provisions referred to in paragraph (2), is repealed.
2
Those provisions are —
a
paragraphs 2, 5 to 9 and 11 of Schedule 4;
b
section 49(1) so far as it relates to those paragraphs of that Schedule; and
c
section 51.
Savings
18
1
Despite regulations 9(3) and 10, the following provisions continue to have effect for the purposes of regulations 72A and 72B of the 2010 regulations —
a
the definition of “radioactive substances activity exemption order” in regulation 67 of the 2010 Regulations; and
b
regulation 72 of those Regulations.
2
Despite their lapse by virtue of regulation 17, the orders listed in Schedule 3 continue to have effect for the purposes of regulations 72A and 72B of the 2010 Regulations.
3
Despite regulation 17 —
a
section 8 of the Act (exemptions from the requirement for an environmental permit);
b
section 11 of the Act (exemptions from the requirement for an environmental permit for mobile radioactive apparatus); and
c
section 15 of the Act (further exemptions from the requirement for an environmental permit)
continue to have effect so far as they provide authority for the orders listed in Schedule 3.
4
Despite regulation 17, section 47 of the Act (general interpretation provisions) continues to have effect so far as it applies in relation to the provisions of the Act specified in paragraph (3).
5
The amendments made by paragraph 1 of Part 1 of Schedule 2 (the Continental Shelf Act 1964) do not have effect in relation to the orders listed in Schedule 3 (and continuing to have effect by virtue of paragraph (3)), and despite regulation 15 —
a
paragraph 1 of Schedule 4 to the Act (consequential amendment to the Continental Shelf Act 1964) continues to have effect in relation to those orders; and
b
section 49(1) of the Act (consequential amendments and transitional and transitory provisions) continues to have effect so far as it relates to that paragraph of that Schedule.
6
The amendments made by paragraph 1 of Part 2 of Schedule 2 (The Civil Jurisdiction (Offshore Activities) Order 1987) do not have effect in relation to the orders listed in Schedule 3 (and continuing to have effect by virtue of paragraph (3)).
Revocation
19
The Radioactive Substances (Clocks and Watches) (England and Wales) Regulations 2001 are revoked.
Charles Hendry
Minister of State,
Department of Energy and Climate Change
Date 20th July 2011
John Griffiths
Minister for Environment and Sustainable Development
one of the Welsh Ministers
Date 11th August 2011


text:
Citation and Commencement
1
This Order may be cited as the Clyde Dockyard Port of Gareloch and Loch Long Order 2011 and comes into force on 21st July 2011.
Revocation
2
The Clyde Dockyard Port of Gareloch and Loch Long Order 1967 and the Clyde Dockyard Port of Gareloch and Loch Long (Amendment) Order 1983 are revoked.
Interpretation
3
In this Order —
“ the Act ” means the Dockyard Ports Regulation Act 1865;
“auxiliary” means any government vessel operating in support of naval or military forces;
“Crown Establishment” means any land or property which is for the time being owned or occupied by the Crown;
“the dockyard port” means the Clyde dockyard port of Gareloch and Loch Long as it is described in Article 4;
“parascending” means an activity whereby a parachute is towed by cable in such a manner as to make it airborne;
“power driven” in relation to a vessel means a vessel that is propelled by machinery;
“Queen’s harbour master” means the person for the time being appointed under the Act to be Queen’s harbour master for the dockyard port and any person having authority to act as Queen’s harbour master;
“small boat” means a vessel of an overall length of less than 20 metres;
“underway” in relation to a vessel means that such vessel is not at anchor, made fast to the shore or aground;
“ VHF ” in relation to radiotelephony equipment or radio channels, means very high frequency.
Description of limits
4
For the purposes of the Act and of this Order the limits of the dockyard port shall be the waters of the Firth of Clyde, as far as the tide flows, in the following areas —
a
the Gareloch north of latitude 55° 59.263′ North; and
b
Loch Long and Loch Goil north of latitude 55° 59.993′ North.
5
For the purposes of this Order:
a
The Rhu Narrows Restricted Channel is the area of sea bounded by a line which is marked on the first chart annexed to this Order that joins the points listed in Schedule 1;
b
The Faslane Restricted Area is the area of sea bounded by a line that is marked on the second chart annexed to this Order that joins the points listed in Schedule 2;
c
The Coulport Restricted Area is the area of sea bounded by a line that is marked on the third chart annexed to this Order that joins the points listed in Schedule 3; and
d
The Coulport Fishing Exclusion Zone is the area of sea bounded by a line that is marked on the fourth chart annexed to this Order that joins the points listed in Schedule 4.
Regulations and Rules
6
Schedule 5 makes regulations for the purposes expressed in section 5 of the Act.
7
Schedule 6 makes rules for the purposes expressed in section 7 of the Act.
Penalties
8
The master of every vessel shall observe and cause to be observed the regulations contained in Schedule 5 so far as they relate to his vessel, and any master or any other person who —
a
infringes those regulations; or
b
fails to observe any direction given under those regulations,
shall be guilty of an offence and shall be liable to a fine not exceeding level 3 on the standard scale.
Judith Simpson
Clerk of the Privy Council


text:
Citation and commencement
1
These Regulations may be cited as the Child Trust Funds (Amendment No. 2) Regulations 2011 and shall come into force on 20th April 2011.
Amendments to the Child Trust Funds Regulations 2004
2
1
Regulation 10 (statements for an account) of the Child Trust Funds Regulations 2004 is amended as follows.
2
For paragraphs (1) and (2) substitute —
1
The account provider must produce a statement for the account —
a
subject to paragraphs (6) and (7), annually (“an annual statement”), and
b
where an account is transferred to another account provider under regulation 21, as at the transfer date (“a transfer statement”).
2
References in paragraphs (2A)(b), (3), (4), (5), (6) and (8) to a statement (without more) shall be construed as references to any statement required to be produced in accordance with this regulation.
2A
The account provider must produce an annual statement at a date (a “relevant date”) not later than 12 months from the latest of —
a
the date of the opening of the account;
b
the date at which the most recent statement was produced; and
c
the last date at which, but for paragraph (6), a previous annual statement would have had to have been produced.
.
3
In paragraph (3) —
a
at the beginning, for “The statement” substitute “A statement required to be produced in accordance with this regulation”;
b
at the end, for “statement date” substitute “date specified in paragraph (3A)”.
4
After paragraph (3), insert —
3A
The date specified in this paragraph is —
a
in relation to an annual statement, the relevant date;
b
in relation to a transfer statement, the transfer date; or
c
where paragraph (7) applies, the later of the relevant date in relation to the annual statement requested and the date that the request is received by the account provider.
.
5
In sub-paragraphs (4)(g), (4)(i)(ii), (4)(l) and (4)(m) for “statement date” substitute “relevant date”.
6
For paragraph (4)(h) substitute —
h
the total market value of the investments under the account at the date at which the most recent statement was produced (if any);
.
7
For paragraph (4)(i)(i) substitute —
i
the date at which the most recent statement was produced, or the opening of the account (whichever is the later), and
.
8
At the end add —
6
Where, in relation to an annual statement, at a relevant date —
a
the aggregate market value of the account investments held under the account is less than £300, or
b
no subscriptions under regulation 9 have been made to the account during the relevant period,
then, subject to paragraph (7), the account provider need only produce the annual statement if it would be the first statement to be produced following the child’s fourth, tenth or fifteenth birthday.
7
Paragraph (6) shall not apply where any potential recipient of an annual statement (see paragraph (3)) requests such a statement.
8
“The relevant period” means the period —
a
beginning on the latest of —
i
the date of the opening of the account;
ii
the date at which the most recent statement was produced; and
iii
the last date as at which, but for paragraph (6), an annual statement would have had to have been produced; and
b
ending on the relevant date.
.
Michael Fabricant
Brooks Newmark
Two of the Lords Commissioners of Her Majesty’s Treasury
29th March 2011


text:
Title and commencement
1
These Regulations may be cited as the Veterinary Medicines (Amendment) Regulations 2011 and come into force on 5th May 2011.
Amendment to the Veterinary Medicines Regulations 2009
2
1
The Veterinary Medicines Regulations 2009 are amended in Part 1 of Schedule 3 as follows.
2
In paragraph 4, for sub-paragraph (2), substitute —
2
This does not apply in relation to the administration of such a product to a wild animal where the administration is authorised by the Secretary of State.
.
Henley
Parliamentary Under Secretary of State
Department for Environment, Food and Rural Affairs
9th April 2011


text:
Citation and commencement
1
These Regulations may be cited as the Breaks for Carers of Disabled Children Regulations 2011 and come into force on 1st April 2011.
Interpretation
2
In these Regulations —
“the 1989 Act ” means the Children Act 1989;
“carer” means a person who provides care for a disabled child and who is —
the child’s parent, or
a person who is not the child’s parent but who has parental responsibility for that child; and
“disabled” has the meaning given in section 17(11) of the 1989 Act .
Duty to make provision
3
In performing their duty under paragraph 6(1)(c) of Schedule 2 to the 1989 Act , a local authority must —
a
have regard to the needs of those carers who would be unable to continue to provide care unless breaks from caring were given to them; and
b
have regard to the needs of those carers who would be able to provide care for their disabled child more effectively if breaks from caring were given to them to allow them to —
i
undertake education, training or any regular leisure activity,
ii
meet the needs of other children in the family more effectively, or
iii
carry out day to day tasks which they must perform in order to run their household.
Types of services which must be provided
4
1
In performing their duty under paragraph 6(1)(c) of Schedule 2 to the 1989 Act, a local authority must provide, so far as is reasonably practicable, a range of services which is sufficient to assist carers to continue to provide care or to do so more effectively.
2
In particular, the local authority must provide, as appropriate, a range of —
a
day-time care in the homes of disabled children or elsewhere,
b
overnight care in the homes of disabled children or elsewhere,
c
educational or leisure activities for disabled children outside their homes, and
d
services available to assist carers in the evenings, at weekends and during the school holidays.
Short breaks services statement
5
1
A local authority must, by 1st October 2011, prepare a statement for carers in their area (a “short breaks services statement”) setting out details of —
a
the range of services provided in accordance with regulation 4,
b
any criteria by which eligibility for those services will be assessed, and
c
how the range of services is designed to meet the needs of carers in their area.
2
The local authority must publish their short breaks services statement, including by placing a copy of the statement on their website.
3
The local authority must keep their short breaks services statement under review and, where appropriate, revise the statement.
4
In preparing and revising their statement, the local authority must have regard to the views of carers in their area.
Sarah Teather
Minister of State
Department for Education
9th March 2011


text:
Citation and commencement
1
This Order may be cited as The Cirencester Tertiary College Sixth Form College Corporation Designation (England) Order 2011 and comes into force on 1st December 2011.
Designation
2
The body corporate of the Cirencester Tertiary College, being a body corporate of the kind specified in section 33B(2) of the Act, is designated as a sixth form college corporation.
Continuity of the body corporate
3
Designation as a sixth form college corporation under this Order does not affect the continuity of the body corporate, and its instrument and articles of government.
Jonathan Hill
Parliamentary Under Secretary of State
Department for Education
18th October 2011