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The Credit Institutions and Insurance Undertakings Reorganisation and Winding Up (Amendment) (EU Exit) Regulations 2019

Type Statutory-Instrument

Publication 2019-01-14

State In force

Department King's Printer of Acts of Parliament

Source legislation.gov.uk

Reform history JSON API PDF

Made: 14th January 2019

Laid before Parliament: 15th January 2019

Coming into force in accordance with regulation 1(2) and (3)

The Treasury are a government department designated for the purpose of section 2(2) of the European Communities Act 1972 in relation to financial services.

The Treasury make the following Regulations in exercise of the powers conferred by section 2(2) of the European Communities Act 1972 and sections 8(1) and 23(6) of, and paragraph 21 of Schedule 7 to, the European Union (Withdrawal) Act 2018 .

The requirements of paragraph 3(2) of Schedule 7 to the European Union (Withdrawal) Act 2018 (relating to the appropriate Parliamentary procedure for these regulations) have been satisfied.

PART 1 — General

Citation and commencement

1

(1) These Regulations may be cited as the Credit Institutions and Insurance Undertakings Reorganisation and Winding Up (Amendment) (EU Exit) Regulations 2019.

(2) This regulation and regulation 3(2)(b) come into force immediately before IP completion day.

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

PART 2 — Amendment of secondary legislation

Amendment of the Insurers (Reorganisation and Winding Up) Regulations 2004

2

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

(2) In regulation 2 (interpretation)—

(a) in paragraph (1) omit the following definitions—

(i) “branch”;

(ii) “directive reorganisation measure”;

(iii) “directive winding up proceedings”;

(iv) “EEA creditor”;

(v) “EEA insurer”;

(vi) “EEA regulator”;

(vii) “EEA State”;

(viii) “home state regulator”;

(ix) “official language”;

(x) “the Solvency 2 Directive”; and

(b) omit paragraph (2).

(3) Omit Part 2 (insolvency measures and proceedings: jurisdiction in relation to insurers).

(4) Omit regulation 10 (notification of relevant decision to EEA regulators).

(5) Omit regulation 11 (publication of voluntary arrangement, administration order, winding up order or scheme of arrangement).

(6) In regulation 12 (notification to creditors: winding-up proceedings)—

(a) in paragraph (7) omit “Subject to paragraph (8),” and the words from “, and that heading” to the end; and

(b) omit paragraph (8).

(7) Omit regulation 13 (submission of claims by EEA creditors).

(8) Omit regulation 16 (disclosure of confidential information received from an EEA regulator).

(9) In regulation 17 (interpretation of Part 4), in paragraph (1)—

(a) in the definition of “composite insurer” omit “, in accordance with Article 73(2) of the Solvency 2 Directive”;

(b) in the definition of “general business assets” omit the words from “, in accordance with” to the end; and

(10) In the heading of Part 5 omit “: Recognition of EEA rights”.

(11) In regulation 36 (interpretation of Part 5), in paragraph (1) omit sub-paragraph (c) (the definition of “relevant time”) and the word “and” which immediately precedes that sub-paragraph.

(12) For regulation 37 (EEA rights: applicable law in the winding up of a UK insurer) substitute—

(37) The general law of insolvency of the United Kingdom is applicable in a relevant winding up, subject only to the provisions of regulations 43 and 44.

(13) Omit the following regulations—

(a) regulation 38 (employment contracts and relationships);

(b) regulation 39 (contracts in connection with immovable property);

(d) regulation 41 (third parties' rights in rem); and

(e) regulation 42 (reservation of title agreements etc.).

(14) In regulation 43 (creditors' rights to set off)—

(a) in paragraph (1) for “applicable EEA law” substitute “ law applicable to the affected insurer's claim ”; and

(b) omit paragraph (2).

(15) In regulation 44 (regulated markets)—

(a) in paragraph (1)—

(i) omit “Without prejudice to regulation 40,”;

(ii) for “a regulated market operating in an EEA State” substitute “ UK regulated market ”; and

(b) for paragraph (3) substitute—

(3) For the purposes of this regulation “UK regulated market” has the meaning given by point (13A) of Article 2(1) of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012.

(16) Omit the following regulations—

(a) regulation 45 (detrimental acts pursuant to the law of an EEA State);

(b) regulation 46 (protection of third party purchasers); and

(17) In regulation 48 (interpretation of Part 6), in paragraph (1)(b) (definition of third country insurer)—

(a) in paragraph (i) after “contracts of insurance” insert “ other than by virtue of regulation 8 or 11 of the EEA Passport Rights (Amendment, etc., and Transitional Provisions) (EU Exit) Regulations 2018 ”; and

(b) in paragraph (ii) omit “or an EEA State”.

(18) Omit regulation 50 (disclosure of confidential information: third country insurers).

Amendment of the Credit Institutions (Reorganisation and Winding up) Regulations 2004

3

(1) The Credit Institutions (Reorganisation and Winding up) Regulations 2004 are amended as follows.

(2) In regulation 2 (interpretation)—

(a) in paragraph (1)—

(i) omit the following definitions—

(aa) “branch”;

(bb) “capital requirements directive”;

(cc) “directive reorganisation measure”;

(dd) “directive winding-up proceedings”;

(ee) “Disclosure Regulations”;

(ff) “EEA credit institution”;

(gg) “EEA creditor”;

(hh) “EEA regulator”;

(ii) “EEA State”;

(jj) “home state regulator”;

(kk) “official language”; and

(ll) “the reorganisation and winding up directive”.

(ii) in the definition of “liquidator” omit “, except for the purposes of regulation 4,”;

(iii) in the definition of “recovery and resolution directive” at the end insert “ , as it had effect immediately before IP completion day ”;

(b) after paragraph (1) insert—

(1A) In the definition of “capital requirements regulation” the reference to Regulation (EU) No. 575/2013 is to be treated as a reference to that EU Regulation as it forms part of retained EU law.

(3) Omit Part 2 (insolvency measures and proceedings: jurisdiction in relation to credit institutions).

(4) Omit regulation 10 (notification to EEA regulators).

(5) Omit regulation 12 (publication of voluntary arrangement, administration order, winding-up order or scheme of arrangement).

(6) Omit regulation 13 (honouring of certain obligations).

(7) In regulation 14 (notification to creditors: winding-up proceedings), in paragraph (6) omit “, and that heading must be given in every official language”.

(8) Omit regulation 15 (submission of claims by EEA creditors).

(9) Omit regulation 18 (disclosure of confidential information received from an EEA regulator).

(10) In the heading of Part 4 omit “: Recognition of EEA rights”.

(11) In regulation 21 (interpretation of Part 4), in paragraph (1) omit sub-paragraph (c) (the definition of “relevant time”) and the word “and” which immediately precedes that sub-paragraph.

(12) For regulation 22 (EEA rights: applicable law in the winding up of a UK credit institution) substitute—

(22) The general law of insolvency of the United Kingdom is applicable in a relevant winding up, subject only to the provisions of regulations 28, 29, 34 and 35.

(13) Omit the following regulations—

(a) regulation 23 (employment contracts and relationships);

(b) regulation 24 (contracts in connection with immovable property);

(d) regulation 26 (third parties' rights in rem); and

(e) regulation 27 (reservation of title agreements etc.).

(14) In regulation 29 (regulated markets)—

(a) in paragraph (1)—

(i) omit “Subject to regulation 33,”;

(ii) for “a regulated market operating in an EEA State” substitute “ UK regulated market ”; and

(b) for paragraph (2) substitute—

(2) For the purposes of this regulation “UK regulated market” has the meaning given by point (13A) of Article 2(1) of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012.

(15) Omit the following regulations—

(a) regulation 30 (detrimental acts pursuant to the law of an EEA State);

(b) regulation 31 (protection of third party purchasers);

(d) regulation 33 (lex rei sitae).

(16) In regulation 34 (netting agreements) omit paragraph (2)(c).

(17) In regulation 35 (repurchase agreements)—

(a) omit “Subject to regulation 33,”; and

(b) omit paragraph (2)(c).

(18) In regulation 36 (interpretation of Part 5), in paragraph (1)(b)(ii) omit “or an EEA State”.

(19) For regulation 37 (application of these Regulations to a third country credit institution), ignoring the heading, substitute—

(37) Regulation 9 applies where a third country credit institution is subject to a relevant measure, and is to be read for that purpose as if a reference to the institution or, in paragraph (6), to the credit institution included a reference to a third country credit institution.

(20) Omit regulation 38 (disclosure of confidential information: third country credit institution).

(21) In regulation 39 (interpretation of Part 6) omit paragraph (a).

(22) Omit the following regulations—

(a) regulation 41 (application to EEA investment firms);

(b) regulation 43 (reorganisation measures and winding-up proceedings in respect of EEA investment firms effective in the United Kingdom).

(23) In regulation 44 (interpretation of Part 7) omit paragraph (a).

(24) Omit the following regulations—

(a) regulation 46 (application to EEA group companies);

(b) regulation 47 (reorganisation measures and winding-up proceedings in respect of EEA group companies effective in the United Kingdom).

(25) In regulation 48 (interpretation of Part 8)—

(a) for the heading substitute “ Members not established in the United Kingdom ”; and

(b) for “an EEA State” substitute “ the United Kingdom ”.

Amendment of the Insurers (Reorganisation and Winding Up (Lloyd's) Regulations 2005

4

(1) The Insurers (Reorganisation and Winding Up) (Lloyd's) Regulations 2005 are amended as follows.

(2) In regulation 2 (interpretation), in paragraph (1)—

(a) in the definition of “the association of underwriters known as Lloyd's” at the end insert “ , as it had effect immediately before IP completion day”; and

(b) in the definition of “overseas insurance business” for “that is not or is not part of an EEA State” substitute “ other than the United Kingdom ”.

(3) In regulation 10 (announcement of appointment of controller) omit paragraph (2).

(4) Omit the following regulations—

(a) regulation 34 (notification of relevant decision to EEA Regulators);

(b) regulation 35 (application of certain publication requirements in the principal Regulations to members);

(d) regulation 37 (submission of claims by EEA creditor).

(5) In regulation 39 (service of notices and documents)—

(a) in paragraph (1) for “regulations 33 to 35” substitute “ regulation 33 ”; and

(b) in paragraph (3) for “regulations 33 to 37 above” substitute “ regulation 33 ”.

(6) In regulation 45 (application of Part 5 of the principal Regulations), in paragraph (1) omit “: recognition of EEA rights)”.

(7) In regulation 46 (modification of provisions in Part 5 of the principal Regulations)—

(a) in paragraph (4), in the opening words (the reference to regulation 37 of the principal Regulations) omit “EEA rights:”; and

(b) omit paragraph (5).

(8) In regulation 48 (non-EEA countries) for “the EEA” substitute “ the United Kingdom ”.

PART 3 — Transitional and saving provisions

CHAPTER 1 — EEA institutions subject on IP completion day to reorganisation or winding up in another EEA State

Interpretation

5

(1) In this Chapter each of the following definitions has the meaning given in regulation 2(1) of the Credit Institutions (Reorganisation and Winding Up) Regulations 2004 (“the 2004 Regulations”)—

(a) “branch”;

(b) “capital requirements directive”;

(d) “EEA State”;

(e) “recovery and resolution directive” ;

(f) “section 899 compromise or arrangement”; and

(g) “stabilisation instrument”.

(2) The definitions of “branch” and “EEA State” have effect for the purposes of this Chapter despite being omitted by regulation 3(2)(a).

(3) The definition of “capital requirements directive” has effect for the purposes of this Chapter despite being omitted by regulation 3(2)(a), but is to be read for those purposes as if at the end there were inserted “, as it had effect immediately before IP completion day”.

(4) The definition of “directive winding-up proceedings”—

(a) has effect for the purposes of this Chapter despite being omitted by regulation 3(2)(a);

(b) despite regulation 3(2)(a)(i)(ll) is to be construed by reference to the definition of “the reorganisation and winding up directive” given in regulation 2(1) of the 2004 Regulations, except that this definition is to be read as if at the end there were inserted “and as it had effect immediately before IP completion day”; and

(5) In this Chapter—

“capital requirements regulation” means Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No. 648/2012 as it had effect in EU law immediately before IP completion day;

“creditor”, in relation to a relevant institution, means any person who has a claim of any kind against the institution (whether or not the claim relates to a deposit);

“directive reorganisation measure” means a measure which is intended to preserve or restore the financial situation of a relevant institution and which could affect third parties' pre-existing rights, including—a measure involving the possibility of a suspension of payments, suspension of enforcement measures or reduction of claims; anda measure which applies resolution tools or exercises resolution powers for which provision is made in the recovery and resolution directive;

“EEA creditor” means a creditor who—is located or payable in an EEA State; oris treated by the law of the EEA State in which a directive reorganisation measure was adopted or imposed or directive winding up proceedings were opened as if they were located or payable in an EEA State;

“EEA credit institution”, except in regulation 6(3)(b), means an undertaking which—is an EEA undertaking of the kind mentioned in Article 4(1)(1) and 4(1)(17) of the capital requirements regulation;but is not any of the undertakings or kinds of undertaking referred to in Article 2(5)(2) to (22) of the capital requirements directive;

“EEA group company” means an EEA undertaking which is—a financial institution within the meaning given by Article 4(1)(26) of the capital requirements regulation,a parent undertaking within the meaning given by Article 4(1)(15)(a) of the capital requirements regulation, orany other firm within the scope of Article 1(1) of the recovery and resolution directive, which is not otherwise subject to the 2004 Regulations and with respect to which one or more of the resolution tools or resolution powers provided for in the recovery and resolution directive have been applied;

“EEA investment firm” means an EEA undertaking of the kind mentioned in Article 4(1)(2) and 4(1)(17) of the capital requirements regulation;

“relevant institution” means—an EEA credit institution which has a branch in the United Kingdom;an EEA group company; oran EEA investment firm which has a branch in the United Kingdom; and

“UK creditor” means a creditor who—is located or payable in the United Kingdom; oris treated by the law of the EEA State under which a directive reorganisation measure was adopted or imposed or directive winding up proceedings were opened as if they were located or payable in the United Kingdom.

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