The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023

The Payment and Electronic Money Institution Insolvency (Amendment) Regulations 2023 were recently published on the official journal of the UK. They serve to amend the Payment and Electronic Money Institution Insolvency Regulations 2021 (SI 2021/716) to apply the 2021 Regulations to the insolvency of payment institutions and electronic money institutions formed under the law of Northern Ireland and to institutions that are limited liability partnerships formed under the law of Scotland. The regulations thereby aim to ensure that the insolvency procedures for such institutions are appropriately tailored to their unique characteristics and the nature of their operations.
In brief, the regulations thereby
– lay down rules for the dismissal of winding-up petitions;
– detail the procedures and duties related to the appointment of insolvency administrators, including requirements for public announcements and statements of the company’s affairs;
– stipulate provisions related to creditors‘ meetings, decision-making processes, and the role of regulatory bodies such as the Financial Conduct Authority (FCA) in such meetings;
– include provisions for the protection of secured or preferential creditors, specifying their rights and entitlements in the insolvency and administration process;
– empower various stakeholders, including the FCA, creditors, and other stakeholders, to challenge the conduct or decisions of the administrator of an insolvency proceeding; and
– set out conditions under which a wind-down order may be terminated.