The Insolvency (Amendment) (EU Exit) Regulations 2019

• Citation: S.I. 2019/146
• Sections: 305

Section 1 Citation and commencement

(1) These Regulations may be cited as the Insolvency (Amendment) (EU Exit) Regulations 2019.

(2) The following provisions of these Regulations come into force on the day after these Regulations are made—

(a) regulation 2 as it relates—

(i) to paragraph 177 of the Schedule, and

(ii) Part 12 of the Schedule,

(b) paragraph 177 of the Schedule, and

(c) Part 12 of the Schedule.

(3) The remainder of these Regulations come into force on exit day.

Section 2 Amendments

The Schedule has effect.

Section 3 Extent and application

Any provision of these Regulations amending or applying an enactment has the same extent as the enactment amended or applied, except that—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) the amendments made to the Insolvency Act 1986 by Part 7 of the Schedule apply to Scotland only.

Section 4 Temporal application and savings

(1) ... Nothing in these Regulations affects—

(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(b) the saving for the existing law in article 3 of the Insolvency Amendment (EU 2015/848) Regulations 2017 .

(2) The amendments made by these Regulations do not apply in respect of any insolvency proceedings and actions falling within Article 67(3)(c) of the withdrawal agreement.

(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 5

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Section 1 Amendments to the EU Insolvency Regulation

Regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings is amended as follows.

Section 2 Amendments to the EU Insolvency Regulation

(1) Article 1 is amended as follows.

(2) For the heading substitute “ Application and jurisdiction ” .

(3) For paragraph 1 substitute—

(1) The grounds for jurisdiction to open insolvency proceedings set out in paragraph 1B are in addition to any grounds for jurisdiction to open such proceedings which apply in the laws of any part of the United Kingdom.

(1A) There is jurisdiction to open insolvency proceedings listed in paragraph 1B where the proceedings are opened for the purposes of rescue, adjustment of debt, reorganisation or liquidation and—

(a) the centre of the debtor's main interests is in the United Kingdom; or

(b) the centre of the debtor's main interests is in a Member State and there is an establishment in the United Kingdom.

(1B) The proceedings referred to in paragraph 1 are—

(a) winding up by or subject to the supervision of the court;

(b) creditors' voluntary winding up with confirmation by the court;

(c) administration, including appointments made by filing prescribed documents with the court;

(d) voluntary arrangements under insolvency legislation; and

(e) bankruptcy or sequestration.

(4) In paragraph 2 for “Directive 2001/24/EC ” substitute “ the Credit Institutions (Reorganisation and Winding up) Regulations 2004 ” .

Section 3

In Article 2—

(a) insert the following paragraph—

(1A) “ Member State ” means a state which is a member of the EU other than Denmark;

(b) omit paragraphs (1) and (3);

(c) in paragraph (4) for “listed in Annex A” substitute “ listed in Article 1(1B) which there is jurisdiction to open under Article 1(1A) and includes interim proceedings ” ;

(d) in paragraph (6)—

(i) omit point (i); and

(ii) in point (ii) omit “in all other articles,” and “of a Member State”;

(e) omit paragraph (9);

(f) in paragraph (10) omit “main”;

(g) omit paragraphs (11) to (14).

Section 4

(1) Article 3 is amended as follows.

(2) For the heading “International jurisdiction” substitute “ Centre of main interests ” .

(3) In paragraph 1—

(a) in the first sub-paragraph omit the first sentence;

(b) in the second sub-paragraph for “to another Member State” substitute “ from the United Kingdom to a Member State or to the United Kingdom from a Member State ” ;

(c) in the third sub-paragraph for “to another Member State” substitute “ from the United Kingdom to a Member State or to the United Kingdom from a Member State ” ;

(d) in the fourth sub-paragraph for “to another Member State” substitute “ from the United Kingdom to a Member State or to the United Kingdom from a Member State ” ;

(4) Omit paragraphs 2 to 4.

Section 5

(1) Article 4 is amended as follows.

(2) In paragraph 1—

(a) in the first sentence for “Article 3” substitute “ Article 1(1A) (a) or (b) ” ; and

(b) for the second sentence substitute “ Where there is jurisdiction to open insolvency proceedings on either of the grounds specified in Article 1(1A)(a) or (b), the judgment opening such proceedings must state which of those grounds is applicable. ” .

(3) In paragraph 2—

(a) in the first sentence—

(i) omit “in accordance with national law” and “Member States may entrust”;

(ii) for the words from “to examine” to the end of the sentence substitute “ must examine the grounds on which there is jurisdiction to open the proceedings under Article 1(1A). ” ; and

(b) for the second sentence substitute “ Where this is the case and there is jurisdiction to open insolvency proceedings on either of the grounds specified in Article 1(1A)(a) or (b), the insolvency practitioner must specify in the decision opening the proceedings which of those grounds is applicable. ” .

Section 6

(1) Article 5 is amended as follows.

(2) In the heading omit “main”.

(3) In paragraph 1—

(a) omit “main” after “the decision opening”; and

(b) for “grounds of international jurisdiction” substitute “ the grounds of jurisdiction under Article 1(1A)(a) ” .

(4) In paragraph 2—

(a) omit “main” after “the decision opening”;

(b) omit “international”;

(c) after “jurisdiction” insert “ under Article 1(1A)(a) ” ; and

(d) for “national law so provides” substitute “ the relevant law (other than this Regulation) of the part of the United Kingdom in which the matter is being determined so provides ” .

Section 7

Omit Articles 6 to 83.

Section 8

In Article 84 omit—

(a) the second sentence of paragraph 1, and

(b) paragraph 2.

Section 9

In Article 85—

(a) omit paragraphs 1 and 2;

(b) in paragraph 3—

(i) in point (a) omit “in any Member State”; and

(ii) for “that Member State” substitute “ the United Kingdom ” .

Section 10

Omit Articles 86 to 90.

Section 11

In Article 91 omit the second sentence.

Section 12

In Article 92 omit point (c).

Section 13

Omit the sentence immediately following Article 92 which begins “This Regulation shall be binding”.

Section 14

Omit Annex A.

Section 15

In Annex B omit all the entries other than those for the United Kingdom.

Section 16

The Insolvency Act 1986 is amended as follows.

Section 17

In section 1 in subsection (4) —

(a) in paragraph (b) omit “other than the United Kingdom”; and

(b) in paragraph (c) for “other than Denmark” substitute “ (other than Denmark) or in the United Kingdom ” .

Section 18

In section 106 omit subsections (4A) and (4B) .

Section 19

In section 117 omit subsection (7) .

Section 20

In section 120 omit subsection (6).

Section 21

In section 124 in subsection (1) omit the words from “or by a member State liquidator” to “Article 52 of the EU Regulation)” .

Section 22

In section 146 omit subsections (6) and (7) .

Section 23

Omit section 146A .

Section 24

(1) Section 201 is amended as follows .

(2) In subsection (2) omit—

(a) “and any statement under section 106(4B),”; and

(b) “(except where subsection (2A) applies)”.

(3) Omit subsections (2A) and (2B).

Section 25

(1) Section 202 is amended as follows .

(2) Omit subsections (2A) and (2B).

(3) In subsection (4) omit “and send any statement under subsection (2B)”.

(4) In subsection (5)—

(a) omit “and any statement under subsection (2B)”;

(b) after “shall forthwith register it” omit “or them”; and

(c) omit “(except where subsection (6) applies)”.

(5) Omit subsections (6) and (7).

(6) In subsection (8) omit “or (7)”.

Section 26

(1) Section 205 is amended as follows .

(2) In subsection (2) omit “and any statement under section 146(7) or 146A(2)”.

(3) Omit subsections (2A) and (2B).

Section 27

In section 225 omit subsection (2).

Section 28

In section 240 in subsection (3)(d) omit the words from “either following” to “Article 51 of the EU Regulation or”.

Section 29

In section 247 in subsection (3) omit paragraph (b) and the “, or” preceding it.

Section 30

In section 251 omit the definitions of “EU insolvency proceedings” and “member State liquidator” .

Section 31

(1) Section 263I is amended as follows.

(2) In subsection (1)—

(a) after paragraph (a) insert—

(ab) the centre of the debtor's main interests is in a member State (other than Denmark) and the debtor has an establishment in England and Wales, or

(b) in paragraph (b) omit the words from the beginning of the paragraph to “the EU Regulation, but”.

(3) After subsection (4) insert—

(5) In this section “ establishment ” has the same meaning as in Article 2(10) of the EU Regulation.

Section 32

In section 264 in subsection (1) omit paragraphs (ba) and (bb) .

Section 33

(1) Section 265 is amended as follows.

(2) In subsection (1)—

(a) after paragraph (a) insert—

(ab) the centre of the debtor's main interests is in a member State (other than Denmark) and the debtor has an establishment in England and Wales, or

(b) in paragraph (b) omit the words from the beginning of the paragraph to “the EU Regulation, but”.

(3) After subsection (4) insert—

(5) In this section “ establishment ” has the same meaning as in Article 2(10) of the EU Regulation.

Section 34

In section 330 omit subsection (6).

Section 35

In section 387 in subsection (3)—

(a) omit paragraphs (aa) and (ab);

(b) in paragraph (b) omit “, (aa) or (ab)”;

(c) in paragraph (ba) omit “, (aa), (ab)”;

(d) in paragraph (c) omit “, (aa), (ab)”.

Section 36

In section 388 omit subsection (6).

Section 37

In section 411 in subsection (2B) for the words from “an offence” to the end of the sentence substitute “ a new relevant offence ” .

Section 38

In section 412 in subsection (2B) for the words from “an offence” to the end of the sentence substitute “ a new relevant offence ” .

Section 39

In section 420 in subsection (1B) for the words from “an offence” to the end of the sentence substitute “ a new relevant offence ” .

Section 40

In section 421 in subsection (1B) for the words from “an offence” to the end of the sentence substitute “ a new relevant offence ” .

Section 41

After section 422 insert—

Meaning of “relevant offence”

(422A) In this Part “ relevant offence ” means a criminal offence punishable with imprisonment for more than two years or punishable on summary conviction with imprisonment for more than three months or with a fine of more than level 5 on the standard scale (if not calculated on a daily basis) or with a fine of more than £100 a day.

Section 42

In section 436 in the definition of “the EU Regulation” at the end insert “ as it forms part of domestic law on and after exit day ” .

Section 43

Omit section 436A .

Section 44

In Schedule B1 —

(a) in paragraph 84 —

(i) omit sub-paragraphs (1A) and (1B);

(ii) in sub-paragraph (3) omit “and any statement under sub-paragraph (1B)” and at the end omit “or them”;

(iii) in sub-paragraph (6) omit “(except where sub-paragraph (6A) applies)”;

(iv) omit sub-paragraphs (6A) and (6B); and

(v) in sub-paragraph (7)(a) and (c) omit “or (6B)”;

(b) in paragraph 111 —

(i) in sub-paragraph (1A)(b) omit “other than the United Kingdom”; and

(ii) in sub-paragraph (1A)(c) for “other than Denmark” substitute “ (other than Denmark) or in the United Kingdom ” .

Section 45

(1) Part 2 of the Insolvency Act 1986 as it had effect immediately before the coming into force of section 248 of the Enterprise Act 2002 and in so far as it continues to have effect is amended as follows .

(2) In section 8 for “Article 3 of the EC Regulation” substitute “ Article 1 of the EU Regulation ” .