Legalize / United Kingdom / Public General Act

Enterprise Act 2002

Type Public General Act

Publication 2002-11-07

Last updated 2026-04-06

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

Disqualification for competition infringements (9A) (1) The court must make a disqualification order against a person if the following two conditions are satisfied in relation to him. (2) The first condition is that an undertaking which is a company of which he is a director commits a breach of competition law. (3) The second condition is that the court considers that his conduct as a director makes him unfit to be concerned in the management of a company. (4) An undertaking commits a breach of competition law if it engages in conduct which infringes any of the following— (a) the Chapter 1 prohibition (within the meaning of the Competition Act 1998) (prohibition on agreements, etc. preventing, restricting or distorting competition); (b) the Chapter 2 prohibition (within the meaning of that Act) (prohibition on abuse of a dominant position); (c) Article 81 of the Treaty establishing the European Community (prohibition on agreements, etc. preventing, restricting or distorting competition); (d) Article 82 of that Treaty (prohibition on abuse of a dominant position). (5) For the purpose of deciding under subsection (3) whether a person is unfit to be concerned in the management of a company the court— (a) must have regard to whether subsection (6) applies to him; (b) may have regard to his conduct as a director of a company in connection with any other breach of competition law; (c) must not have regard to the matters mentioned in Schedule 1. (6) This subsection applies to a person if as a director of the company— (a) his conduct contributed to the breach of competition law mentioned in subsection (2); (b) his conduct did not contribute to the breach but he had reasonable grounds to suspect that the conduct of the undertaking constituted the breach and he took no steps to prevent it; (c) he did not know but ought to have known that the conduct of the undertaking constituted the breach. (7) For the purposes of subsection (6)(a) it is immaterial whether the person knew that the conduct of the undertaking constituted the breach. (8) For the purposes of subsection (4)(a) or (c) references to the conduct of an undertaking are references to its conduct taken with the conduct of one or more other undertakings. (9) The maximum period of disqualification under this section is 15 years. (10) An application under this section for a disqualification order may be made by the OFT or by a specified regulator. (11) Section 60 of the Competition Act 1998 (c. 41) (consistent treatment of questions arising under United Kingdom and Commnunity law) applies in relation to any question arising by virtue of subsection (4)(a) or (b) above as it applies in relation to any question arising under Part 1 of that Act. (9B) (1) This section applies if— (a) the OFT or a specified regulator thinks that in relation to any person an undertaking which is a company of which he is a director has committed or is committing a breach of competition law, (b) the OFT or the specified regulator thinks that the conduct of the person as a director makes him unfit to be concerned in the management of a company, and (c) the person offers to give the OFT or the specified regulator (as the case may be) a disqualification undertaking. (2) The OFT or the specified regulator (as the case may be) may accept a disqualification undertaking from the person instead of applying for or proceeding with an application for a disqualification order. (3) A disqualification undertaking is an undertaking by a person that for the period specified in the undertaking he will not— (a) be a director of a company; (b) act as receiver of a company’s property; (c) in any way, whether directly or indirectly, be concerned or take part in the promotion, formation or management of a company; (d) act as an insolvency practitioner. (4) But a disqualification undertaking may provide that a prohibition falling within subsection (3)(a) to (c) does not apply if the person obtains the leave of the court. (5) The maximum period which may be specified in a disqualification undertaking is 15 years. (6) If a disqualification undertaking is accepted from a person who is already subject to a disqualification undertaking under this Act or to a disqualification order the periods specified in those undertakings or the undertaking and the order (as the case may be) run concurrently. (7) Subsections (4) to (8) of section 9A apply for the purposes of this section as they apply for the purposes of that section but in the application of subsection (5) of that section the reference to the court must be construed as a reference to the OFT or a specified regulator (as the case may be). (9C) (1) If the OFT or a specified regulator has reasonable grounds for suspecting that a breach of competition law has occurred it or he (as the case may be) may carry out an investigation for the purpose of deciding whether to make an application under section 9A for a disqualification order. (2) For the purposes of such an investigation sections 26 to 30 of the Competition Act 1998 (c. 41) apply to the OFT and the specified regulators as they apply to the OFT for the purposes of an investigation under section 25 of that Act. (3) Subsection (4) applies if as a result of an investigation under this section the OFT or a specified regulator proposes to apply under section 9A for a disqualification order. (4) Before making the application the OFT or regulator (as the case may be) must— (a) give notice to the person likely to be affected by the application, and (b) give that person an opportunity to make representations. (9D) (1) The Secretary of State may make regulations for the purpose of co-ordinating the performance of functions under sections 9A to 9C (relevant functions) which are exercisable concurrently by two or more persons. (2) Section 54(5) to (7) of the Competition Act 1998 (c. 41) applies to regulations made under this section as it applies to regulations made under that section and for that purpose in that section— (a) references to Part 1 functions must be read as references to relevant functions; (b) references to a regulator must be read as references to a specified regulator; (c) a competent person also includes any of the specified regulators. (3) The power to make regulations under this section must be exercised by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament. (4) Such a statutory instrument may— (a) contain such incidental, supplemental, consequential and transitional provision as the Secretary of State thinks appropriate; (b) make different provision for different cases. (9E) (1) This section applies for the purposes of sections 9A to 9D. (2) Each of the following is a specified regulator for the purposes of a breach of competition law in relation to a matter in respect of which he or it has a function— (a) the Director General of Telecommunications; (b) the Gas and Electricity Markets Authority; (c) the Director General of Water Services; (d) the Rail Regulator; (e) the Civil Aviation Authority. (3) The court is the High Court or (in Scotland) the Court of Session. (4) Conduct includes omission. (5) Director includes shadow director.

(3) In section 1(1) (general provision about disqualification orders) for “section 6” substitute “ sections 6 and 9A ”.

(4) In section 8A (variation etc of disqualification undertaking) after subsection (2) there is inserted the following subsection—

(2A) Subsection (2) does not apply to an application in the case of an undertaking given under section 9B, and in such a case on the hearing of the application whichever of the OFT or a specified regulator (within the meaning of section 9E) accepted the undertaking— (a) must appear and call the attention of the court to any matters which appear to it or him (as the case may be) to be relevant; (b) may give evidence or call witnesses.

(5) In section 8A for subsection (3) there is substituted—

(3) In this section “the court”— (a) in the case of an undertaking given under section 9B means the High Court or (in Scotland) the Court of Session; (b) in any other case has the same meaning as in section 7(2) or 8 (as the case may be).

(6) In section 16(3) for “the Secretary of State or the official receiver or the liquidator” substitute “ a person falling within subsection (4) ”.

(7) In section 16 after subsection (3) there is inserted the following subsection—

(4) The following fall within this subsection— (a) the Secretary of State; (b) the official receiver; (c) the OFT; (d) the liquidator; (e) a specified regulator (within the meaning of section 9E).

(8) In section 17 (applications for leave under an order or undertaking) after subsection (3) there is inserted the following subsection—

(3A) Where a person is subject to a disqualification undertaking accepted at any time under section 9B any application for leave for the purposes of section 9B(4) must be made to the High Court or (in Scotland) the Court of Session.

(9) In section 17(4) for “or 1A(1)(a)” substitute “ 1A(1)(a) or 9B(4) ”.

(10) In section 17 after subsection (5) there are inserted the following subsections—

(6) Subsection (5) does not apply to an application for leave for the purposes of section 1(1)(a) if the application for the disqualification order was made under section 9A. (7) In such a case and in the case of an application for leave for the purposes of section 9B(4) on the hearing of the application whichever of the OFT or a specified regulator (within the meaning of section 9E) applied for the order or accepted the undertaking (as the case may be)— (a) must appear and draw the attention of the court to any matters which appear to it or him (as the case may be) to be relevant; (b) may give evidence or call witnesses.

(11) In section 18 (register of disqualification orders and undertakings) for subsection (2A) substitute—

(2A) The Secretary of State must include in the register such particulars as he considers appropriate of— (a) disqualification undertakings accepted by him under section 7 or 8; (b) disqualification undertakings accepted by the OFT or a specified regulator under section 9B; (c) cases in which leave has been granted as mentioned in subsection (1)(d).

Miscellaneous

Super-complaints to regulators other than OFT

205

(1) The Secretary of State may by order provide that section 11 is to apply to complaints made to a specified regulator in relation to a market of a specified description as it applies to complaints made to the CMA, with such modifications as may be specified.

(2) An order under this section—

(a) shall be made by statutory instrument, and

(b) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(3) In this section—

“regulator” has the meaning given in section 54(1) of the 1998 Act; and

“specified” means specified in the order.

Power to modify Schedule 8

206

(1) The Secretary of State may by order made by statutory instrument modify Schedule 8.

(2) An order under this section may make—

(a) different provision for different cases or different purposes;

(b) such incidental, supplementary, consequential, transitory, transitional or saving provision as the Secretary of State considers appropriate.

(3) An order under this section may, in particular, modify that Schedule in its application by virtue of Part 3 of this Act, in its application by virtue of Part 4 of this Act, in its application by virtue of any other enactment (whether by virtue of Part 4 of this Act as applied by that enactment or otherwise) or in its application by virtue of every enactment that applies it.

(4) An order under this section as extended by subsection (2) may modify any enactment comprised in or made under this Act, or any other enactment.

(5) No order shall be made under this section unless a draft of it has been laid before, and approved by a resolution of, each House of Parliament.

(6) No modification of Schedule 8 in its application by virtue of Part 3 of this Act shall be made by an order under this section if the modification relates to a relevant merger situation or (as the case may be) a special merger situation which has been created before the coming into force of the order.

(7) No modification shall be made by an order under this section of Schedule 8 in its application in relation to references made under section 22, 33, 45 or 62 before the coming into force of the order.

(8) No modification shall be made by an order under this section of Schedule 8 in its application in relation to references made under section 131 or 132 before the coming into force of the order (including references made under section 131 as applied by another enactment).

(9) Before making an order under this section, the Secretary of State shall consult the CMA.

(10) Expressions used in this section which are also used in Part 3 of this Act have the same meaning in this section as in that Part.

Repeal of Schedule 4 to the 1998 Act

207

Section 3(1)(d) of and Schedule 4 to the 1998 Act (which provide for the exclusion from the Chapter 1 prohibition in cases involving designated professional rules) shall cease to have effect.

Repeal of Part 6 of Fair Trading Act 1973

208

Sections 78 to 80 of the 1973 Act (references to Commission other than monopoly and merger references) shall cease to have effect.

Reform of Community competition law

209

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Part 8 — Enforcement of certain consumer legislation

Introduction

Consumers

210

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Domestic infringements

211

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Community infringements

212

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Enforcers

213

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Enforcement orders and interim enforcement orders

Consultation

214

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Applications

215

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Applications: directions by OFT

216

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Enforcement orders

217

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Interim enforcement order

218

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Undertakings

219

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Further proceedings

220

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Community infringements: proceedings

221

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Bodies corporate: accessories

222

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Bodies corporate: orders

223

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Information

OFT

224

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Other enforcers

225

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Notices: procedure

226

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Notices: enforcement

227

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Miscellaneous

Evidence

228

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Advice and information

229

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Notice to OFT of intended prosecution

230

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Notice of convictions and judgments to OFT

231

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Interpretation

Goods and services

232

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Person supplying goods

233

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Supply of services

234

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Injunctions Directive

235

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Crown

236

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Part 9 — Information

Restrictions on disclosure

General restriction

237

(1) This section applies to specified information which relates to—

(a) the affairs of an individual;

(b) any business of an undertaking.

(2) Such information must not be disclosed—

(a) during the lifetime of the individual, or

(b) while the undertaking continues in existence,

unless the disclosure is permitted under this Part.

(3) But subsection (2) does not prevent the disclosure of any information if the information has on an earlier occasion been disclosed to the public in circumstances which do not contravene—

(a) that subsection;

(b) any other enactment or rule of law prohibiting or restricting the disclosure of the information.

(4) Nothing in this Part authorises a disclosure of information which contravenes the data protection legislation.

(5) Nothing in this Part affects the Competition Appeal Tribunal.

(6) This Part (except section 244) does not affect any power or duty to disclose information which exists apart from this Part.

(7) In this section, “the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act).

Information

238

(1) Information is specified information if it comes to a public authority in connection with the exercise of any function it has under or by virtue of—

(a) Part 1, 3, 4, 6 or 7;

(b) an enactment specified in Schedule 14;

(2) It is immaterial whether information comes to a public authority before or after the passing of this Act.

(3) Public authority (except in the expression “overseas public authority”) must be construed in accordance with section 6 of the Human Rights Act 1998 (c. 42).

(4) In subsection (1) the reference to an enactment includes a reference to an enactment contained in—

(a) an Act of the Scottish Parliament;

(b) Northern Ireland legislation;

(5) The Secretary of State may by order amend Schedule 14.

(6) The power to make an order under subsection (5) includes power to add, vary or remove a reference to any provision of—

(a) an Act of the Scottish Parliament;

(b) Northern Ireland legislation.

(7) An order under this section must be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

(8) This section applies for the purposes of this Part.

Permitted disclosure

239

(1) This Part does not prohibit the disclosure by a public authority of information held by it to any other person if it obtains each required consent.

(2) If the information was obtained by the authority from a person who had the information lawfully and the authority knows the identity of that person the consent of that person is required.

(3) If the information relates to the affairs of an individual the consent of the individual is required.

(4) If the information relates to the business of an undertaking the consent of the person for the time being carrying on the business is required.

(5) For the purposes of subsection (4) consent may be given—

(a) in the case of a company by a director, secretary or other officer of the company;

(b) in the case of a partnership by a partner;

(c) in the case of an unincorporated body or association by a person concerned in the management or control of the body or association.

Community obligations

240

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Statutory functions

241

(1) A public authority which holds information to which section 237 applies may disclose that information for the purpose of facilitating the exercise by the authority of any function it has under or by virtue of this Act or any other enactment.

(2) If information is disclosed under subsection (1) so that it is not made available to the public it must not be further disclosed by a person to whom it is so disclosed other than with the agreement of the public authority for the purpose mentioned in that subsection.

(2A) Information disclosed under subsection (1) so that it is not made available to the public must not be used by the person to whom it is disclosed for any purpose other than that mentioned in subsection (1).

(3) A public authority which holds information to which section 237 applies may disclose that information to any other person for the purpose of facilitating the exercise by that person of any function he has under or by virtue of—

(a) this Act;

(b) an enactment specified in Schedule 15;

(4) Information disclosed under subsection (3) must not be used by the person to whom it is disclosed for any purpose other than a purpose relating to a function mentioned in that subsection.

(5) In subsection (1) the reference to an enactment includes a reference to an enactment contained in—

(a) an Act of the Scottish Parliament;

(b) Northern Ireland legislation;

(6) The Secretary of State may by order amend Schedule 15.

(7) The power to make an order under subsection (6) includes power to add, vary or remove a reference to any provision of—

(a) an Act of the Scottish Parliament;

(b) Northern Ireland legislation.

(8) An order under this section must be made by statutory instrument subject to annulment in pursuance of a resolution of either House of Parliament.

Criminal proceedings

242

(1) A public authority which holds information to which section 237 applies may disclose that information to any person—

(a) in connection with the investigation of any criminal offence in any part of the United Kingdom;

(b) for the purposes of any criminal proceedings there;

(2) Information disclosed under this section must not be used by the person to whom it is disclosed for any purpose other than that for which it is disclosed.

(3) A public authority must not make a disclosure under this section unless it is satisfied that the making of the disclosure is proportionate to what is sought to be achieved by it.

Overseas disclosures

243

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Specified information: considerations relevant to disclosure

244

(1) A public authority must have regard to the following considerations before disclosing any specified information (within the meaning of section 238(1)).

(2) The first consideration is the need to exclude from disclosure (so far as practicable) any sensitive information.

(3) The second consideration is the need to exclude from disclosure (so far as practicable) any commercial information or private information.

(4) The third consideration is the extent to which the disclosure of the information mentioned in subsection (3)(a) or (b) is necessary for the purpose for which the authority is permitted to make the disclosure.

Offences

245

(1) A person commits an offence if he discloses information to which section 237 applies in contravention of section 237(2).

(2) A person commits an offence if he discloses information in contravention of a direction given under section 243E.

(3) A person commits an offence if he uses information disclosed to him under this Part for a purpose which is not permitted under this Part.

(4) A person who commits an offence under this section is liable—

(a) on summary conviction to imprisonment for a term not exceeding three months or to a fine not exceeding the statutory maximum or to both;

(b) on conviction on indictment to imprisonment for a term not exceeding two years or to a fine or to both.

General

Subordinate legislation

246

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Repeals

247

The following enactments (which make provision as to the disclosure of certain information) shall cease to have effect—

(a) section 28(5) and (5A) of the Trade Descriptions Act 1968 (c. 29);

(b) sections 30(3) and 133 of the 1973 Act;

(d) section 174 of the Consumer Credit Act 1974 (c. 39);

(e) section 10 of the Estate Agents Act 1979 (c. 38);

(f) section 19(1) to (3), (4)(c), (d) and (f) and (5) and (6) of the Competition Act 1980 (c. 21);

(g) section 38 of the Consumer Protection Act 1987 (c. 43);

(h) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(i) paragraph 5 of Schedule 2 to the Timeshare Act 1992 (c. 35);

(j) sections 55 and 56 of and Schedule 11 to the Competition Act 1998 (c. 41);

(k) section 351(1) to (3) and (7) of and Schedule 19 to the Financial Services and Markets Act 2000 (c. 8).

Part 10 — Insolvency

Companies etc.

Replacement of Part II of Insolvency Act 1986

248

(1) The following shall be substituted for Part II of the Insolvency Act 1986 (c. 45) (administration orders)—

(8) Schedule B1 to this Act (which makes provision about the administration of companies) shall have effect.

(2) The Schedule B1 set out in Schedule 16 to this Act shall be inserted after Schedule A1 to the Insolvency Act 1986.

(3) Schedule 17 (minor and consequential amendments relating to administration) shall have effect.

(4) The Secretary of State may by order amend an enactment in consequence of this section.

(5) An order under subsection (4)—

(a) must be made by statutory instrument, and

(b) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Special administration regimes

249

(1) Section 248 shall have no effect in relation to—

(a) a company holding an appointment under Chapter I of Part II of the Water Industry Act 1991 (c. 56) (water and sewerage undertakers),

(aa) a qualifying water supply licensee within the meaning of subsection (6) of section 23 of the Water Industry Act 1991 (meaning and effect of special administration order) or a qualifying sewerage licensee within the meaning of subsection (8) of that section,

(b) a protected railway company within the meaning of section 59 of the Railways Act 1993 (c. 43) (railway administration order) (including that section as it has effect by virtue of section 19 of the Channel Tunnel Rail Link Act 1996 (c. 61) (administration)),

(d) a public-private partnership company within the meaning of section 210 of the Greater London Authority Act 1999 (c. 29) (public-private partnership agreement), or

(e) a building society within the meaning of section 119 of the Building Societies Act 1986 (c. 53) (interpretation).

(2) A reference in an Act listed in subsection (1) to a provision of Part II of the Insolvency Act 1986 (or to a provision which has effect in relation to a provision of that Part of that Act) shall, in so far as it relates to a company or society listed in subsection (1), continue to have effect as if it referred to Part II as it had effect immediately before the coming into force of section 248.

(3) But the effect of subsection (2) in respect of a particular class of company or society may be modified by order of—

(a) the Treasury, in the case of building societies, or

(b) the Secretary of State, in any other case.

(4) An order under subsection (3) may make consequential amendment of an enactment.

(5) An order under subsection (3)—

(a) must be made by statutory instrument, and

(b) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.

(6) An amendment of the Insolvency Act 1986 (c. 45) made by this Act is without prejudice to any power conferred by Part VII of the Companies Act 1989 (c. 40) (financial markets) to modify the law of insolvency.

Prohibition of appointment of administrative receiver

250

(1) The following shall be inserted after Chapter III of Part III of the Insolvency Act 1986 (receivership: receivers’ powers)—

(72A) (1) The holder of a qualifying floating charge in respect of a company’s property may not appoint an administrative receiver of the company. (2) In Scotland, the holder of a qualifying floating charge in respect of a company’s property may not appoint or apply to the court for the appointment of a receiver who on appointment would be an administrative receiver of property of the company. (3) In subsections (1) and (2)— - “holder of a qualifying floating charge in respect of a company’s property” has the same meaning as in paragraph 14 of Schedule B1 to this Act, and - “administrative receiver” has the meaning given by section 251. (4) This section applies— (a) to a floating charge created on or after a date appointed by the Secretary of State by order made by statutory instrument, and (b) in spite of any provision of an agreement or instrument which purports to empower a person to appoint an administrative receiver (by whatever name). (5) An order under subsection (4)(a) may— (a) make provision which applies generally or only for a specified purpose; (b) make different provision for different purposes; (c) make transitional provision. (6) This section is subject to the exceptions specified in sections 72B to 72G. (72B) (1) Section 72A does not prevent the appointment of an administrative receiver in pursuance of an agreement which is or forms part of a capital market arrangement if— (a) a party incurs or, when the agreement was entered into was expected to incur, a debt of at least £50 million under the arrangement, and (b) the arrangement involves the issue of a capital market investment. (2) In subsection (1)— - “capital market arrangement” means an arrangement of a kind described in paragraph 1 of Schedule 2A, and - “capital market investment” means an investment of a kind described in paragraph 2 or 3 of that Schedule. (72C) (1) Section 72A does not prevent the appointment of an administrative receiver of a project company of a project which— (a) is a public-private partnership project, and (b) includes step-in rights. (2) In this section “public-private partnership project” means a project— (a) the resources for which are provided partly by one or more public bodies and partly by one or more private persons, or (b) which is designed wholly or mainly for the purpose of assisting a public body to discharge a function. (3) In this section— - “step-in rights” has the meaning given by paragraph 6 of Schedule 2A, and - “project company” has the meaning given by paragraph 7 of that Schedule. (72D) (1) Section 72A does not prevent the appointment of an administrative receiver of a project company of a project which— (a) is a utility project, and (b) includes step-in rights. (2) In this section— (a) “utility project” means a project designed wholly or mainly for the purpose of a regulated business, (b) “regulated business” means a business of a kind listed in paragraph 10 of Schedule 2A, (c) “step-in rights” has the meaning given by paragraph 6 of that Schedule, and (d) “project company” has the meaning given by paragraph 7 of that Schedule. (72E) (1) Section 72A does not prevent the appointment of an administrative receiver of a project company of a project which— (a) is a financed project, and (b) includes step-in rights. (2) In this section— (a) a project is “financed” if under an agreement relating to the project a project company incurs, or when the agreement is entered into is expected to incur, a debt of at least £50 million for the purposes of carrying out the project, (b) “project company” has the meaning given by paragraph 7 of Schedule 2A, and (c) “step-in rights” has the meaning given by paragraph 6 of that Schedule. (72F) Section 72A does not prevent the appointment of an administrative receiver of a company by virtue of— (a) a market charge within the meaning of section 173 of the Companies Act 1989 (c. 40), (b) a system-charge within the meaning of the Financial Markets and Insolvency Regulations 1996 (S.I. 1996/1469), (c) a collateral security charge within the meaning of the Financial Markets and Insolvency (Settlement Finality) Regulations 1999 (S.I. 1999/2979). (72G) Section 72A does not prevent the appointment of an administrative receiver of a company which is registered as a social landlord under Part I of the Housing Act 1996 (c. 52) or under Part 3 of the Housing (Scotland) Act 2001 (asp 10). (72H) (1) Schedule 2A (which supplements sections 72B to 72G) shall have effect. (2) The Secretary of State may by order— (a) insert into this Act provision creating an additional exception to section 72A(1) or (2); (b) provide for a provision of this Act which creates an exception to section 72A(1) or (2) to cease to have effect; (c) amend section 72A in consequence of provision made under paragraph (a) or (b); (d) amend any of sections 72B to 72G; (e) amend Schedule 2A. (3) An order under subsection (2) must be made by statutory instrument. (4) An order under subsection (2) may make— (a) provision which applies generally or only for a specified purpose; (b) different provision for different purposes; (c) consequential or supplementary provision; (d) transitional provision. (5) An order under subsection (2)— (a) in the case of an order under subsection (2)(e), shall be subject to annulment in pursuance of a resolution of either House of Parliament, (b) in the case of an order under subsection (2)(d) varying the sum specified in section 72B(1)(a) or 72E(2)(a) (whether or not the order also makes consequential or transitional provision), shall be subject to annulment in pursuance of a resolution of either House of Parliament, and (c) in the case of any other order under subsection (2)(a) to (d), may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.

(2) The Schedule 2A set out in Schedule 18 to this Act shall be inserted after Schedule 2 to the Insolvency Act 1986 (c. 45).

Abolition of Crown preference

251

(1) The following paragraphs of Schedule 6 to the Insolvency Act 1986 (categories of preferential debts) shall cease to have effect—

(a) paragraphs 1 and 2 (debts due to Inland Revenue),

(b) paragraphs 3 to 5C(debts due to Customs and Excise), and

(2) The following paragraphs of Schedule 3 to the Bankruptcy (Scotland) Act 1985 (c. 66) (list of preferred debts) shall cease to have effect—

(a) paragraph 1 (debts due to Inland Revenue),

(b) paragraph 2 (debts due to Customs and Excise), and

(3) In section 386 of the Insolvency Act 1986 (categories of preferential debts) for the parenthetical words after “Schedule 6 to this Act” there shall be substituted “ (contributions to occupational pension schemes; remuneration, &c. of employees; levies on coal and steel production) ”.

Unsecured creditors

252

The following shall be inserted after section 176 of the Insolvency Act 1986 (winding up: preferential debt)—

(176A) (1) This section applies where a floating charge relates to property of a company— (a) which has gone into liquidation, (b) which is in administration, (c) of which there is a provisional liquidator, or (d) of which there is a receiver. (2) The liquidator, administrator or receiver— (a) shall make a prescribed part of the company’s net property available for the satisfaction of unsecured debts, and (b) shall not distribute that part to the proprietor of a floating charge except in so far as it exceeds the amount required for the satisfaction of unsecured debts. (3) Subsection (2) shall not apply to a company if— (a) the company’s net property is less than the prescribed minimum, and (b) the liquidator, administrator or receiver thinks that the cost of making a distribution to unsecured creditors would be disproportionate to the benefits. (4) Subsection (2) shall also not apply to a company if or in so far as it is disapplied by— (a) a voluntary arrangement in respect of the company, or (b) a compromise or arrangement agreed under section 425 of the Companies Act (compromise with creditors and members). (5) Subsection (2) shall also not apply to a company if— (a) the liquidator, administrator or receiver applies to the court for an order under this subsection on the ground that the cost of making a distribution to unsecured creditors would be disproportionate to the benefits, and (b) the court orders that subsection (2) shall not apply. (6) In subsections (2) and (3) a company’s net property is the amount of its property which would, but for this section, be available for satisfaction of claims of holders of debentures secured by, or holders of, any floating charge created by the company. (7) An order under subsection (2) prescribing part of a company’s net property may, in particular, provide for its calculation— (a) as a percentage of the company’s net property, or (b) as an aggregate of different percentages of different parts of the company’s net property. (8) An order under this section— (a) must be made by statutory instrument, and (b) shall be subject to annulment pursuant to a resolution of either House of Parliament. (9) In this section— - “floating charge” means a charge which is a floating charge on its creation and which is created after the first order under subsection (2)(a) comes into force, and - “prescribed” means prescribed by order by the Secretary of State. (10) An order under this section may include transitional or incidental provision.

Liquidator’s powers

253

The following shall be inserted in Part I of Schedule 4 to the Insolvency Act 1986 (c. 45) (liquidator’s powers in winding up: powers exercisable only with sanction) after paragraph 3—

(3A) Power to bring legal proceedings under section 213, 214, 238, 239, 242, 243 or 423.

Application of insolvency law to foreign company

254

(1) The Secretary of State may by order provide for a provision of the Insolvency Act 1986 to apply (with or without modification) in relation to a company incorporated outside Great Britain.

(2) An order under this section—

(a) may make provision generally or for a specified purpose only,

(b) may make different provision for different purposes, and

(3) An order under this section—

(a) must be made by statutory instrument, and

(b) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Application of law about company arrangement or administration to non-company

255

(1) The Treasury may with the concurrence of the Secretary of State by order provide for a company arrangement or administration provision to apply (with or without modification) in relation to—

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

(b) a society registered under section 7(1)(b), (c), (d), (e) or (f) of the Friendly Societies Act 1974 (c. 46),

(d) an unregistered friendly society.

(2) In subsection (1) “company arrangement or administration provision” means—

(a) a provision of Part I of the Insolvency Act 1986 (company voluntary arrangements),

(b) a provision of Part II of that Act (administration), ...

(d) Part 26A of that Act (compromise or arrangement with creditors where company in financial difficulty).

(3) An order under this section may not provide for a company arrangement or administration provision to apply in relation to a society which is —

(a) a private registered provider of social housing, or

(b) registered as a social landlord under Part I of the Housing Act 1996 (c. 52) or under Part 2 of the Housing (Scotland) Act 2010 (asp 17) .

(4) An order under this section—

(a) may make provision generally or for a specified purpose only,

(b) may make different provision for different purposes, and

(5) Provision by virtue of subsection (4)(c) may, in particular—

(a) apply an enactment (with or without modification);

(b) amend an enactment.

(6) An order under this section—

(a) must be made by statutory instrument, and

(b) shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Individuals

Duration of bankruptcy

256

(1) The following shall be substituted for section 279 of the Insolvency Act 1986 (c. 45) (duration of bankruptcy)—

(279) (1) A bankrupt is discharged from bankruptcy at the end of the period of one year beginning with the date on which the bankruptcy commences. (2) If before the end of that period the official receiver files with the court a notice stating that investigation of the conduct and affairs of the bankrupt under section 289 is unnecessary or concluded, the bankrupt is discharged when the notice is filed. (3) On the application of the official receiver or the trustee of a bankrupt’s estate, the court may order that the period specified in subsection (1) shall cease to run until— (a) the end of a specified period, or (b) the fulfilment of a specified condition. (4) The court may make an order under subsection (3) only if satisfied that the bankrupt has failed or is failing to comply with an obligation under this Part. (5) In subsection (3)(b) “condition” includes a condition requiring that the court be satisfied of something. (6) In the case of an individual who is adjudged bankrupt on a petition under section 264(1)(d)— (a) subsections (1) to (5) shall not apply, and (b) the bankrupt is discharged from bankruptcy by an order of the court under section 280. (7) This section is without prejudice to any power of the court to annul a bankruptcy order.

(2) Schedule 19 (which makes transitional provision in relation to this section)—

(a) shall have effect, and

(b) is without prejudice to the generality of section 276.

Post-discharge restrictions

257

(1) The following shall be inserted after section 281 of the Insolvency Act 1986 (c. 45) (bankruptcy: effect of discharge)—

(281A) Schedule 4A to this Act (bankruptcy restrictions order and bankruptcy restrictions undertaking) shall have effect.

(2) The Schedule 4A set out in Schedule 20 to this Act shall be inserted after Schedule 4 to the Insolvency Act 1986.

(3) The amendments set out in Schedule 21 (which specify the effect of a bankruptcy restrictions order or undertaking) shall have effect.

Investigation by official receiver

258

The following shall be substituted for section 289 of the Insolvency Act 1986 (official receiver’s duty to investigate)—

(289) (1) The official receiver shall— (a) investigate the conduct and affairs of each bankrupt (including his conduct and affairs before the making of the bankruptcy order), and (b) make such report (if any) to the court as the official receiver thinks fit. (2) Subsection (1) shall not apply to a case in which the official receiver thinks an investigation under that subsection unnecessary. (3) Where a bankrupt makes an application for discharge under section 280— (a) the official receiver shall make a report to the court about such matters as may be prescribed, and (b) the court shall consider the report before determining the application. (4) A report by the official receiver under this section shall in any proceedings be prima facie evidence of the facts stated in it.

Income payments order

259

(1) Section 310 of the Insolvency Act 1986 (income payments order) shall be amended as follows.

(2) In subsection (1) omit “, on the application of the trustee,”.

(3) After subsection (1) insert—

(1A) An income payments order may be made only on an application instituted— (a) by the trustee, and (b) before the discharge of the bankrupt.

(4) For subsection (6) substitute—

(6) An income payments order must specify the period during which it is to have effect; and that period— (a) may end after the discharge of the bankrupt, but (b) may not end after the period of three years beginning with the date on which the order is made. (6A) An income payments order may (subject to subsection (6)(b)) be varied on the application of the trustee or the bankrupt (whether before or after discharge).

Income payments agreement

260

The following shall be inserted after section 310 of the Insolvency Act 1986 (c. 45) (income payments order)—

(310A) (1) In this section “income payments agreement” means a written agreement between a bankrupt and his trustee or between a bankrupt and the official receiver which provides— (a) that the bankrupt is to pay to the trustee or the official receiver an amount equal to a specified part or proportion of the bankrupt’s income for a specified period, or (b) that a third person is to pay to the trustee or the official receiver a specified proportion of money due to the bankrupt by way of income for a specified period. (2) A provision of an income payments agreement of a kind specified in subsection (1)(a) or (b) may be enforced as if it were a provision of an income payments order. (3) While an income payments agreement is in force the court may, on the application of the bankrupt, his trustee or the official receiver, discharge or vary an attachment of earnings order that is for the time being in force to secure payments by the bankrupt. (4) The following provisions of section 310 shall apply to an income payments agreement as they apply to an income payments order— (a) subsection (5) (receipts to form part of estate), and (b) subsections (7) to (9) (meaning of income). (5) An income payments agreement must specify the period during which it is to have effect; and that period— (a) may end after the discharge of the bankrupt, but (b) may not end after the period of three years beginning with the date on which the agreement is made. (6) An income payments agreement may (subject to subsection (5)(b)) be varied— (a) by written agreement between the parties, or (b) by the court on an application made by the bankrupt, the trustee or the official receiver. (7) The court— (a) may not vary an income payments agreement so as to include provision of a kind which could not be included in an income payments order, and (b) shall grant an application to vary an income payments agreement if and to the extent that the court thinks variation necessary to avoid the effect mentioned in section 310(2).

Bankrupt’s home

261

(1) The following shall be inserted after section 283 of the Insolvency Act 1986 (definition of bankrupt’s estate)—

(283A) (1) This section applies where property comprised in the bankrupt’s estate consists of an interest in a dwelling-house which at the date of the bankruptcy was the sole or principal residence of— (a) the bankrupt, (b) the bankrupt’s spouse, or (c) a former spouse of the bankrupt. (2) At the end of the period of three years beginning with the date of the bankruptcy the interest mentioned in subsection (1) shall— (a) cease to be comprised in the bankrupt’s estate, and (b) vest in the bankrupt (without conveyance, assignment or transfer). (3) Subsection (2) shall not apply if during the period mentioned in that subsection— (a) the trustee realises the interest mentioned in subsection (1), (b) the trustee applies for an order for sale in respect of the dwelling-house, (c) the trustee applies for an order for possession of the dwelling-house, (d) the trustee applies for an order under section 313 in Chapter IV in respect of that interest, or (e) the trustee and the bankrupt agree that the bankrupt shall incur a specified liability to his estate (with or without the addition of interest from the date of the agreement) in consideration of which the interest mentioned in subsection (1) shall cease to form part of the estate. (4) Where an application of a kind described in subsection (3)(b) to (d) is made during the period mentioned in subsection (2) and is dismissed, unless the court orders otherwise the interest to which the application relates shall on the dismissal of the application— (a) cease to be comprised in the bankrupt’s estate, and (b) vest in the bankrupt (without conveyance, assignment or transfer). (5) If the bankrupt does not inform the trustee or the official receiver of his interest in a property before the end of the period of three months beginning with the date of the bankruptcy, the period of three years mentioned in subsection (2)— (a) shall not begin with the date of the bankruptcy, but (b) shall begin with the date on which the trustee or official receiver becomes aware of the bankrupt’s interest. (6) The court may substitute for the period of three years mentioned in subsection (2) a longer period— (a) in prescribed circumstances, and (b) in such other circumstances as the court thinks appropriate. (7) The rules may make provision for this section to have effect with the substitution of a shorter period for the period of three years mentioned in subsection (2) in specified circumstances (which may be described by reference to action to be taken by a trustee in bankruptcy). (8) The rules may also, in particular, make provision— (a) requiring or enabling the trustee of a bankrupt’s estate to give notice that this section applies or does not apply; (b) about the effect of a notice under paragraph (a); (c) requiring the trustee of a bankrupt’s estate to make an application to the Chief Land Registrar. (9) Rules under subsection (8)(b) may, in particular— (a) disapply this section; (b) enable a court to disapply this section; (c) make provision in consequence of a disapplication of this section; (d) enable a court to make provision in consequence of a disapplication of this section; (e) make provision (which may include provision conferring jurisdiction on a court or tribunal) about compensation.

(2) Section 313 of the Insolvency Act 1986 (c. 45) (charge on bankrupt’s home) shall be amended as follows—

(a) in subsection (2) for “, up to the value from time to time of the property secured,” substitute “ , up to the charged value from time to time, ”,

(b) after subsection (2) insert—

(2A) In subsection (2) the charged value means— (a) the amount specified in the charging order as the value of the bankrupt’s interest in the property at the date of the order, plus (b) interest on that amount from the date of the charging order at the prescribed rate. (2B) In determining the value of an interest for the purposes of this section the court shall disregard any matter which it is required to disregard by the rules.

and

(5) But an order under section 3(5) of that Act may not vary a charged value.

(3) The following shall be inserted after section 313 of that Act—

(313A) (1) This section applies where— (a) property comprised in the bankrupt’s estate consists of an interest in a dwelling-house which at the date of the bankruptcy was the sole or principal residence of— (i) the bankrupt, (ii) the bankrupt’s spouse, or (iii) a former spouse of the bankrupt, and (b) the trustee applies for an order for the sale of the property, for an order for possession of the property or for an order under section 313 in respect of the property. (2) The court shall dismiss the application if the value of the interest is below the amount prescribed for the purposes of this subsection. (3) In determining the value of an interest for the purposes of this section the court shall disregard any matter which it is required to disregard by the order which prescribes the amount for the purposes of subsection (2).

(4) The following shall be inserted after section 307(2)(a) of the Insolvency Act 1986 (c. 45) (after-acquired property: exclusions)—

(aa) any property vesting in the bankrupt by virtue of section 283A in Chapter II,

(5) In section 384(2) of that Act (prescribed amounts) after “section 273;” insert—

section 313A;

(6) In section 418(1) of that Act (monetary limits in bankruptcy) after the entry for section 273 insert—

section 313A (value of property below which application for sale, possession or charge to be dismissed);

(7) In subsection (8)—

(a) “pre-commencement bankrupt” means an individual who is adjudged bankrupt on a petition presented before subsection (1) above comes into force, and

(b) “the transitional period” is the period of three years beginning with the date on which subsection (1) above comes into force.

(8) If a pre-commencement bankrupt’s estate includes an interest in a dwelling-house which at the date of the bankruptcy was the sole or principal residence of him, his spouse or a former spouse of his, at the end of the transitional period that interest shall—

(a) cease to be comprised in the estate, and

(b) vest in the bankrupt (without conveyance, assignment or transfer).

(9) But subsection (8) shall not apply if before or during the transitional period—

(a) any of the events mentioned in section 283A(3) of the Insolvency Act 1986 (c. 45) (inserted by subsection (1) above) occurs in relation to the interest or the dwelling-house, or

(b) the trustee obtains any order of a court, or makes any agreement with the bankrupt, in respect of the interest or the dwelling-house.

(10) Subsections 283A(4) to (9) of that Act shall have effect, with any necessary modifications, in relation to the provision made by subsections (7) to (9) above; in particular—

(a) a reference to the period mentioned in section 283A(2) shall be construed as a reference to the transitional period,

(b) in the application of section 283A(5) a reference to the date of the bankruptcy shall be construed as a reference to the date on which subsection (1) above comes into force, and

(c) a reference to the rules is a reference to rules made under section 412 of the Insolvency Act 1986 (for which purpose this section shall be treated as forming part of Parts VIII to XI of that Act).

Powers of trustee in bankruptcy

262

The following shall be inserted in Part I of Schedule 5 to the Insolvency Act 1986 (powers of trustee in bankruptcy: powers exercisable only with sanction) after paragraph 2—

(2A) Power to bring legal proceedings under section 339, 340 or 423.

Repeal of certain bankruptcy offences

263

The following sections of the Insolvency Act 1986 shall cease to have effect—

(a) section 361 (offence of failure to keep proper accounting records), and

(b) section 362 (offence of gambling and speculation).

Individual voluntary arrangement

264

(1) Schedule 22 (which makes provision about individual voluntary arrangements) shall have effect.

(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

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

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

Disqualification from office: justice of the peace

265

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

Disqualification from office: Parliament

266

(1) The following shall be inserted before section 427 of the Insolvency Act 1986 (c. 45) (the title to which becomes “ Disqualification from Parliament (Scotland and Northern Ireland) ”)—

(426A) (1) A person in respect of whom a bankruptcy restrictions order has effect shall be disqualified— (a) from membership of the House of Commons, (b) from sitting or voting in the House of Lords, and (c) from sitting or voting in a committee of the House of Lords or a joint committee of both Houses. (2) If a member of the House of Commons becomes disqualified under this section, his seat shall be vacated. (3) If a person who is disqualified under this section is returned as a member of the House of Commons, his return shall be void. (4) No writ of summons shall be issued to a member of the House of Lords who is disqualified under this section. (5) If a court makes a bankruptcy restrictions order or interim order in respect of a member of the House of Commons or the House of Lords the court shall notify the Speaker of that House. (6) If the Secretary of State accepts a bankruptcy restrictions undertaking made by a member of the House of Commons or the House of Lords, the Secretary of State shall notify the Speaker of that House. (426B) (1) If a court makes a bankruptcy restrictions order or interim order in respect of a member of the Scottish Parliament, the Northern Ireland Assembly or the National Assembly for Wales, the court shall notify the presiding officer of that body. (2) If the Secretary of State accepts a bankruptcy restrictions undertaking made by a member of the Scottish Parliament, the Northern Ireland Assembly or the National Assembly for Wales, the Secretary of State shall notify the presiding officer of that body. (426C) (1) An enactment about insolvency applies in relation to a member of the House of Commons or the House of Lords irrespective of any Parliamentary privilege. (2) In this section “enactment” includes a provision made by or under— (a) an Act of the Scottish Parliament, or (b) Northern Ireland legislation.

(2) In section 427 of the Insolvency Act 1986 the following shall cease to have effect—

(a) in subsection (1), the words “England and Wales or”, and

(b) subsection (7).

(3) The Secretary of State may by order—

(a) provide for section 426A or 426B of that Act (as inserted by subsection (1) above) to have effect in relation to orders made or undertakings accepted in Scotland or Northern Ireland under a system which appears to the Secretary of State to be equivalent to the system operating under Schedule 4A to that Act (as inserted by section 257 of this Act);

(b) make consequential amendment of section 426A or 426B of that Act (as inserted by subsection (1) above);

(4) An order under this section may make transitional, consequential or incidental provision.

(5) An order under this section—

(a) must be made by statutory instrument, and

(b) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.

Disqualification from office: local government

267

(1) The following shall be substituted for section 80(1)(b) of the Local Government Act 1972 (c. 70) (disqualification for membership of local authority: bankrupt)—

(b) is the subject of a bankruptcy restrictions order or interim order;

(2) Section 81(1) and (2) of that Act (which amplify the provision substituted by subsection (1) above) shall cease to have effect.

Disqualification from office: general

268

(1) The Secretary of State may make an order under this section in relation to a disqualification provision.

(2) A “disqualification provision” is a provision which disqualifies (whether permanently or temporarily and whether absolutely or conditionally) a bankrupt or a class of bankrupts from—

(a) being elected or appointed to an office or position,

(b) holding an office or position, or

(3) In subsection (2) the reference to a provision which disqualifies a person conditionally includes a reference to a provision which enables him to be dismissed.

(4) An order under subsection (1) may repeal or revoke the disqualification provision.

(5) An order under subsection (1) may amend, or modify the effect of, the disqualification provision—

(a) so as to reduce the class of bankrupts to whom the disqualification provision applies;

(b) so as to extend the disqualification provision to some or all individuals who are subject to a bankruptcy restrictions regime;

(c) so that the disqualification provision applies only to some or all individuals who are subject to a bankruptcy restrictions regime;

(d) so as to make the application of the disqualification provision wholly or partly subject to the discretion of a specified person, body or group.

(6) An order by virtue of subsection (5)(d) may provide for a discretion to be subject to—

(a) the approval of a specified person or body;

(b) appeal to a specified person or body.

(7) An order by virtue of subsection (5)(d). . . may provide for a discretion to be subject to appeal to a specified court or tribunal ; but any such order must—

(a) if it relates to England and Wales, be made with the concurrence of the Lord Chief Justice of England and Wales;

(b) if it relates to Northern Ireland, be made with the concurrence of the Lord Chief Justice of Northern Ireland

(8) The Secretary of State may specify himself for the purposes of subsection (5)(d) or (6)(a) or (b).

(9) In this section “bankrupt” means an individual—

(a) who has been made bankrupt (under Part 9 of the Insolvency Act 1986),

(aa) who has been adjudged bankrupt by a court in Northern Ireland,

(b) whose estate has been sequestrated by a court in Scotland, or

(c) who has made an agreement with creditors of his for a composition of debts, for a scheme of arrangement of affairs, for the grant of a trust deed or for some other kind of settlement or arrangement.

(10) In this section “bankruptcy restrictions regime” means an order or undertaking—

(a) under Schedule 4A to the Insolvency Act 1986 (c. 45) (bankruptcy restrictions orders), or

(b) under any system operating in Scotland or Northern Ireland which appears to the Secretary of State to be equivalent to the system operating under that Schedule.

(11) In this section—

“body” includes Parliament and any other legislative body, and

“provision” means— a provision made by an Act of Parliament passed before or in the same Session as this Act, and a provision made, before or in the same Session as this Act, under an Act of Parliament.

(12) An order under this section—

(a) may make provision generally or for a specified purpose only,

(b) may make different provision for different purposes, and

(13) An order under this section—

(a) must be made by statutory instrument, and

(b) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.

(14) A reference in this section to the Secretary of State shall be treated as a reference to the National Assembly for Wales in so far as it relates to a disqualification provision which—

(a) is made by the National Assembly for Wales, or

(b) relates to a function of the National Assembly.

(15) Provision made by virtue of subsection (7) is subject to any order of the Lord Chancellor under section 56(1) of the Access to Justice Act 1999 (c. 22) (appeals: jurisdiction).

(16) The Lord Chief Justice may nominate a judicial office holder (as defined in section 109(4) of the Constitutional Reform Act 2005) to exercise his functions under subsection (7).

(17) The Lord Chief Justice of Northern Ireland may nominate any of the following to exercise his functions under subsection (7)—

(a) the holder of one of the offices listed in Schedule 1 to the Justice (Northern Ireland) Act 2002;

(b) a Lord Justice of Appeal (as defined in section 88 of that Act).

Minor and consequential amendments

269

Schedule 23 (minor and consequential amendments relating to individual insolvency) shall have effect.

Money

Fees

270

(1) The following shall be inserted after section 415 of the Insolvency Act 1986 (c. 45) (fees orders: individual insolvency)—

(415A) (1) The Secretary of State— (a) may by order require a body to pay a fee in connection with the grant or maintenance of recognition of the body under section 391, and (b) may refuse recognition, or revoke an order of recognition under section 391(1) by a further order, where a fee is not paid. (2) The Secretary of State— (a) may by order require a person to pay a fee in connection with the grant or maintenance of authorisation of the person under section 393, and (b) may disregard an application or withdraw an authorisation where a fee is not paid. (3) The Secretary of State may by order require the payment of fees in respect of— (a) the operation of the Insolvency Services Account; (b) payments into and out of that Account. (4) The following provisions of section 414 apply to fees under this section as they apply to fees under that section— (a) subsection (3) (manner of payment), (b) subsection (5) (additional provision), (c) subsection (6) (statutory instrument), (d) subsection (7) (payment into Consolidated Fund), and (e) subsection (9) (saving for rules of court).

(2) An order made by virtue of subsection (1) may relate to the maintenance of recognition or authorisation granted before this section comes into force.

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

(4) In section 440(2)(c) of that Act (provisions not extending to Scotland) after “415,” there shall be inserted “ 415A(3), ”.

Insolvency Services Account: interest

271

(1) The following shall be inserted after paragraph 16 of Schedule 8 to the Insolvency Act 1986 (company insolvency rules: money)—

(16A) Provision enabling the Secretary of State to set the rate of interest paid on sums which have been paid into the Insolvency Services Account.

(2) The following shall be inserted after paragraph 21 of Schedule 9 to the Insolvency Act 1986 (individual insolvency rules: money)—

(21A) Provision enabling the Secretary of State to set the rate of interest paid on sums which have been paid into the Insolvency Services Account.

Insolvency Services Accounts

272

(1) Section 405 of the Insolvency Act 1986 (operation of Investment Account) shall cease to have effect.

(2) The following shall be substituted for section 408 of that Act (recourse to Consolidated Fund)—

(408) (1) The Treasury may direct the payment out of the Consolidated Fund of sums into— (a) the Insolvency Services Account; (b) the Investment Account. (2) The Treasury shall certify to the House of Commons the reason for any payment under subsection (1). (3) The Secretary of State may pay sums out of the Insolvency Services Account into the Consolidated Fund. (4) The National Debt Commissioners may pay sums out of the Investment Account into the Consolidated Fund.

Part 11 — Supplementary

Interpretation

273

In this Act—

“the 1973 Act” means the Fair Trading Act 1973 (c. 41);

“the 1998 Act” means the Competition Act 1998 (c. 41);

“the CMA” means the Competition and Markets Authority;

“the Director” means the Director General of Fair Trading; and

Provision of financial assistance for consumer purposes

274

The Secretary of State may give financial assistance to any person for the purpose of assisting—

(a) activities which the Secretary of State considers are of benefit to consumers; or

(b) the provision of—

(i) advice or information about consumer matters;

(ii) educational materials relating to consumer matters; or

(iii) advice or information to the Secretary of State in connection with the formulation of policy in respect of consumer matters.

Financial provision

275

There shall be paid out of money provided by Parliament—

(a) any expenditure incurred by the OFT, the Secretary of State, any other Minister of the Crown or a government department by virtue of this Act; and

(b) any increase attributable to this Act in the sums payable out of money so provided by virtue of any other Act.

Transitional or transitory provision and savings

276

(1) Schedule 24 (which makes transitional and transitory provisions and savings) has effect.

(2) The Secretary of State may by order made by statutory instrument make such transitional or transitory provisions and savings as he considers appropriate in connection with the coming into force of any provision of this Act.

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