The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018
| Jurisdiction | UK Non-devolved |
| Citation | SI 2018/208 |
| Year | 2018 |
2018 No. 208
Insolvency
The Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018
Made 20th February 2018
Coming into force in accordance with regulation 1(2) and (3)
The Treasury make the following Regulations in exercise of the powers conferred by sections 159(1), (2) and (9) and 161(2) of the Small Business, Enterprise and Employment Act 20151.
A draft of these Regulations has been laid before Parliament and approved by a resolution of each House of Parliament in accordance with sections 159(3) and 161(4) of the Small Business, Enterprise and Employment Act 2015.
PART 1
Introductory provision
Citation and commencement
1.—(1) These Regulations may be cited as the Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018.
(2) This Part and Part 5 of these Regulations come into force on the day after the day on which these Regulations are made.
(3) Parts 2, 3 and 4 of these Regulations come into force on the 21st day after the day on which these Regulations are made.
PART 2
Consequential amendments of primary legislation
The Building Societies Act 1986
2.—(1) The Building Societies Act 19862is amended as follows.
(2) In Schedule 15 (application of companies winding up legislation to building societies), in Part 2 (modified application of Insolvency Act 1986 Parts 4, 12 and 13)3—
(a)
(a) in the heading after “IV,” insert “6, 7,” and at the end insert “and Schedule 10”; and
(b)
(b) after paragraph 6 insert—
“6ZA. Parts 4, 6, 7 and 12 of, and Schedule 10 to, the Act, in their application to building societies, have effect without the amendments of those Parts and that Schedule made by—
(a) section 122 of the Small Business, Enterprise and Employment Act 2015 (abolition of requirements to hold meetings: company insolvency);
(b) section 124 of that Act (ability for creditors to opt not to receive certain notices: company insolvency); and
(c) Part 1 of Schedule 9 to that Act (sections 122 to 125: further amendments).”.
(3) In Schedule 15A (application of other companies insolvency legislation to building societies), in Part 2 (modified application of Parts 1 to 3 and 13 of Insolvency Act 1986)4—
(a)
(a) in the heading for “and 13” substitute “, 6, 7, 12 and 13”; and
(b)
(b) after paragraph 6 insert—
“6A. Parts 1, 3, 6, 7 and 12 of the Act, in their application to building societies, have effect without the amendments of those Parts made by—
(a) section 122 of the Small Business, Enterprise and Employment Act 2015 (abolition of requirements to hold meetings: company insolvency);
(b) section 124 of that Act (ability for creditors to opt not to receive certain notices: company insolvency); and
(c) Part 1 of Schedule 9 to that Act (sections 122 to 125: further amendments).”.
The Friendly Societies Act 1992
3. In Schedule 10 to the Friendly Societies Act 19925(application of companies winding up legislation to incorporated friendly societies), in Part 2 (modified application of Insolvency Act 1986 Parts 4, 12 and 13)6—
(a) in the heading after “IV,” insert “6, 7,” and at the end insert “and Schedule 10”; and
(b) after paragraph 6 insert—
“6A. Parts 4, 6, 7 and 12 of, and Schedule 10 to, the Act, in their application to incorporated friendly societies, have effect without the amendments of those Parts and that Schedule made by—
(a) section 122 of the Small Business, Enterprise and Employment Act 2015 (abolition of requirements to hold meetings: company insolvency);
(b) section 124 of that Act (ability for creditors to opt not to receive certain notices: company insolvency); and
(b) Part 1 of Schedule 9 to that Act (sections 122 to 125: further amendments).”.
The Financial Services and Markets Act 2000
4.—(1) The Financial Services and Markets Act 20007is amended as follows.
(2) In section 355 (interpretation of Part 24 (insolvency)), in subsection (1)—
(a)
(a) after the definition of “court” insert—
““creditors’ decision procedure” has the meaning given by section 379ZA(11)8of the 1986 Act;”; and
(b)
(b) at the end insert—
““qualifying decision procedure” has the meaning given by section 246ZE(11) of the 1986 Act.”.
(3) In section 3579(powers of FCA and PRA to participate in proceedings: individual voluntary arrangements)—
(a)
(a) in subsection (2) for “(3)” substitute “(2A)”;
(b)
(b) after subsection (2) insert—
“2A Where under section 257 of the 1986 Act the individual’s creditors are asked to decide whether to approve the proposed voluntary arrangement—
(a) notice of the creditors’ decision procedure must be given to the appropriate regulator; and
(b) the appropriate regulator or a person appointed by the appropriate regulator is entitled to participate in (but not vote in) the creditors’ decision procedure by which the decision is made10.
2B Notice of the decision made by the creditors’ decision procedure is to be given to the appropriate regulator by the nominee or the nominee’s replacement under section 256(3) or 256A(4) of the 1986 Act.”;
(c)
(c) in subsection (3) for “section 257 of the 1986 Act (or Article 231 of the 1989 Order)” substitute “Article 231 of the 1989 Order”; and
(d)
(d) in subsection (7) for paragraph (a) substitute—
“(a)
“(a) in the case of a PRA-authorised person, each of the FCA and the PRA, except that the references in subsections (2A)(b) and (3) to a person appointed by the appropriate regulator are to be read as references to a person appointed by either the FCA or the PRA;”.
(4) In section 36211(powers of FCA and PRA to participate in proceedings: administration)—
(a)
(a) after subsection (5) insert—
“5A The appropriate regulator or a person appointed by the appropriate regulator is entitled to participate in (but not vote in) a qualifying decision procedure by which a decision about any matter is sought from the creditors of the company or partnership.”; and
(b)
(b) for subsection (7) substitute—
“7 “The appropriate regulator” means—
(a) where the company or partnership is a PRA-regulated person, each of the FCA and the PRA, except that the references in subsections (5) and (5A) to a person appointed by the appropriate regulator are to be read as references to a person appointed by either the FCA or the PRA;
(b) in any other case, the FCA.”.
(5) In section 36512(powers of FCA and PRA to participate in proceedings: voluntary winding up)—
(a)
(a) after subsection (5) insert—
“5A The appropriate regulator or a person appointed by the appropriate regulator is entitled to participate in (but not vote in) a qualifying decision procedure by which a decision about any matter is sought from the creditors of the company.”; and
(b)
(b) for subsection (8) substitute—
“8 “The appropriate regulator” means—
(a) where the company is a PRA-authorised person, each of the FCA and the PRA, except that the references in subsections (5) and (5A) to a person appointed by the appropriate regulator are to be read as references to a person appointed by either the FCA or the PRA;
(b) in any other case, the FCA.”.
(6) In section 37113(powers of FCA and PRA to participate in proceedings: winding up by the court)—
(a)
(a) after subsection (4) insert—
“4A The appropriate regulator or a person appointed by the appropriate regulator is entitled to participate in (but not vote in) a qualifying decision procedure by which a decision about any matter is sought from the creditors of the body.”; and
(b)
(b) for subsection (6) substitute—
“6 “The appropriate regulator” means—
(a) where the body is a PRA-regulated person, each of the FCA and the PRA, except that the references in subsections (4) and (4A) to a person appointed by the appropriate regulator are to be read as references to a person appointed by either the FCA or the PRA;
(b) in any other case, the FCA.”.
(7) In section 37414(powers of FCA and PRA to participate in proceedings: bankruptcy)—
(a)
(a) after subsection (4) insert—
“4A The appropriate regulator or a person appointed by the appropriate regulator is entitled to participate in (but not vote in) a creditors’ decision procedure by which a decision about any matter is sought from the creditors of the individual or entity.”; and
(b)
(b) for subsection (7) substitute—
“7 “The appropriate regulator” means—
(a) where the individual or entity is a PRA-regulated person, each of the FCA and the PRA, except that the references in subsections (4) and (4A) to a person appointed by the appropriate regulator are to be read as references to a person appointed by either the FCA or the PRA;
(b) in any other case, the FCA.”.
The Banking Act 2009
5.—(1) The Banking Act 200915is amended as follows.
(2) In section 10316(general powers and duties of bank liquidators and effect of bank insolvency) after subsection (6) insert—
“7 In the Table “Schedule 9 to the 2015 Act” means Schedule 9 to the Small Business, Enterprise and Employment Act 2015 (further amendments relating to the abolition of requirements to hold meetings: company insolvency).”.
(3) In the Table in section 103 (Table of applied provisions of the Insolvency Act 1986)—
(a)
(a) in the entry for section 141, in column 3 at the beginning insert—
“Ignore the amendment made by paragraph 36 of Schedule 9 to the 2015 Act.”;
(b)
(b) in the entry for section 142, in column 3 at the beginning insert—
“Ignore the amendments made by paragraph 37 of Schedule 9 to the 2015 Act.”;
(c)
(c) in the entry for section 160, in column 3 insert—
“Ignore the amendment made by paragraph 39 of Schedule 9 to the 2015 Act.”;
(d)
(d) in the entry for section 168, in column 3 at the beginning insert—
“(za)
“(za)...
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