Monday, 30 May 2011

New insolvency SI: The Investment Bank Special Administration (England and Wales) Rules 2011

The Investment Bank Special Administration (England and Wales) Rules 2011 have been published. These Rules set out the procedure for the Investment Bank Special Administration process under the Investment Bank Special Administration Regulations 2011(a) (“the Regulations”). The main features of Investment Bank Special Administration are that:

(a) the 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 similar to administration under Schedule B1 of the Insolvency Act 1986(b).

Where the investment bank is also a deposit-taking bank, the Rules also apply in relation to the Special Administration (Bank Insolvency) and Special Administration (Bank Administration) processes under Schedules 1 and 2 of the Regulations.

Picture Credit: http://www.editorsweblog.org/parliament_000.jpg

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