The Insurers (Reorganisation and Winding Up)(Amendment) Regulations 2007

Publication Date:January 01, 2007

2007No. 851

INSOLVENCY

COMPANIES

The Insurers (Reorganisation and Winding Up)(Amendment) Regulations 2007

14thMarch2007

15thMarch2007

6thApril2007

The Treasury are a government department designated 1 for the purposes of section 2(2) of the European Communities Act 1972 2 in relation to the insolvency of insurers.

In exercise of the powers conferred by that section the Treasury make the following Regulations:

Citation and commencement

1.These Regulations may be cited as the Insurers (Reorganisation and Winding Up)(Amendment) Regulations 2007, and come into force on 6th April 2007.

Amendments to Insurers (Reorganisation and Winding Up) Regulations 2004

2.-

(1) The Insurers (Reorganisation and Winding Up) Regulations 2004 3 are amended as follows.

(2) In regulation 2(1) (interpretation)-

(a) at the end of the definition of "administrator" add ", or by paragraph 14 of Schedule B1 to the 1989 Order" 4; and(b) at the end of the definition of "Schedule B1" add ", unless specified otherwise".

(3) At the end of regulation 4(5) (prohibition against administration out of court) add "or paragraph 15 or 23 of Schedule B1 to the 1989 Order.".

(4) For regulation 4(8) (prohibition against winding up etc. EEA insurers in the United Kingdom) substitute-

(8) An order under section 254 of the Enterprise Act 2002 (application of insolvency law to a foreign company) or under Article 9 of the Insolvency (Northern Ireland) Order 2005 5 (application of insolvency law to company incorporated outside Northern Ireland) may not provide for any of the following provisions of the 1986 Act or of the 1989 Order to apply in relation to an EEA insurer-

(a) Part I of the 1986 Act or Part II of the 1989 Order (company voluntary arrangements);(b) Part II of the 1986 Act or Part III of the 1989 Order (administration);(c) Chapter VI of Part IV of the 1986 Act (winding up by the Court) or Chapter VI of Part V of the 1989 Order (winding up by the High Court)..

(5) In regulation 9(1) (notification of relevant decision to the Authority)-

(a) at the end of sub-paragraph (a), add ", or paragraph 14 of Schedule B1 to the 1989 Order"; and(b) at the end of sub-paragraph (d), add "or paragraph 14(1)(d) of Schedule B1 to the 1989 Order".

(6) In regulation 9(3) after "paragraph 83 of Schedule B1" insert ", paragraph 84 of Schedule B1 to the 1989 Order".

(7) At the end of regulation 11(2)(b)(i) (publication), add "or under paragraph 14 of Schedule B1 to the 1989 Order".

(8) At the end of regulation 12(3)(a)(i) (notification to creditors in winding up), add " or under paragraph 14 of Schedule B1 to the 1989 Order in the prescribed circumstances".

(9) For regulation 12(10) substitute-

(10) The prescribed circumstances are where the administrator includes in the statement required under Rule 2.3 of the Insolvency Rules or under Rule 2.003 of the Insolvency Rules (Northern Ireland) a statement to the effect that the objective set out in paragraph 3(1)(a) of Schedule B1 or in paragraph 4(1)(a) of Schedule B1 to the 1989 Order is not reasonably likely to be achieved..

(10) In regulation 12(11) after "Schedule B1" insert "or in paragraph 4(1)(a) of Schedule B1 to the 1989 Order".

(11) In regulation 14(1) (reports to creditors)-

(a) in sub-paragraph (a) after "Schedule B1" insert "or paragraph 84 of Schedule B1 to the 1989 Order"; and(b) at the end of sub-paragraph (d) add "or under paragraph 14 of Schedule B1 to the 1989 Order."

(12) In regulation 18(1)(b) (application of regulations 19 to 27) after "Schedule B1" insert ", paragraph 84 of Schedule B1 to the 1989 Order".

(13) In regulation 21(7) (preferential debts: long term insurers and general insurers) after "section 176A of the 1986 Act" insert "and Article 150A of the 1989 Order" and for the word "has" substitute "have".

(14) In regulation 34(1)(b) (application of Part V) after "Schedule B1" insert "or under paragraph 14 of Schedule B1 to the 1989 Order".

(15) In regulation 34(3)(b) after "Schedule B1" insert ", paragraph 84 of Schedule B1 to the 1989 Order".

(16) In regulation 36(2) (interpretation of Part V)-

(a) at the end of sub-paragraph (a)(ii) add "or paragraph 84 of Schedule B1 to the 1989 Order";(b) in sub-paragraph (c) after "Schedule B1" insert "or under paragraph 14 of Schedule B1 to the 1989 Order"; and(c) in sub-paragraph (d) after "Schedule B1" insert "or under paragraph 15 or 23 of Schedule B1 to the 1989 Order,".

(17) At the end of regulation 48(1)(a)(ii) (interpretation of Part 6) add "or under paragraph 14 of Schedule B1 to the 1989 Order".

Amendments to the Insurers (Reorganisation and Winding Up)(Lloyds) Regulations 2005

3.-

(1) The Insurers (Reorganisation and Winding Up) (Lloyds) Regulations 2005 6 are amended as follows.

(2) In regulation 2 (interpretation) at...

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