A U.K. Order, the Financial Services (Banking Reform) Act 2013 (Commencement No. 1) (England and Wales) Order 2018, has been made. The Order brings into force, from July 13, 2018, the provisions in the Financial Services (Banking Reform) Act 2013 relating to the special administration regime for operators of financial market infrastructures. Relevant FMIs are operators of recognized payment systems, excluding recognized CCPs (which are already subject to the Banking Act resolution regime in the U.K.) and recognized central securities depositories operating a securities settlement system.
On the same day, the Financial Market Infrastructure Administration (England and Wales) Rules 2018 were laid before Parliament. The Rules follow the consultation carried out by the U.K. Government in 2016 on proposed changes to the insolvency rules. The Government published, on July 10, 2018, its response to the feedback it received to the proposed Rules. The Rules, which come into force on August 4, 2018, amend the normal insolvency rules to include as an objective of the administrator of an FMI subject to the special administration regime, that of maintaining critical services. The usual insolvency rules provide for an administrator to focus on the best interests of creditors. The Rules grant the Bank of England a primary role in the administration to ensure that services are maintained.
View the Order.
View the Rules.
View the Government's consultation page on the proposed Rules.
View details of the Government's consultation.
