The Financial Collateral Arrangements (No.2) Regulations 2003

[^key-0573c7d35598bbd608c8fe7747895d77]: Words in reg. 18A(1) inserted (31.12.2023) by The Resolution of Central Counterparties (Modified Application of Corporate Law and Consequential Amendments) Regulations 2023 (S.I. 2023/1313), regs. 1(2), 16(4)

Certain legislation affecting overseas companies not to apply to financial collateral arrangements

6A

Any provision about registration of charges made by regulations under section 1052 of the Companies Act 2006 (overseas companies) does not apply (if it would otherwise do so) in relation to a security financial collateral arrangement or any charge created or otherwise arising under a security financial collateral arrangement or, in Scotland, to any charge created or arising under a financial collateral arrangement.

Certain legislation affecting Northern Ireland companies and requiring formalities not to apply to financial collateral arrangements

Insolvency proceedings in other jurisdictions

15A

• (1) The references to insolvency law in section 426 of the Insolvency Act 1986 (co-operation between courts exercising jurisdiction in relation to insolvency) include, in relation to a part of the United Kingdom, this Part of these Regulations and, in relation to a relevant country or territory within the meaning of that section, so much of the law of that country or territory as corresponds to this Part.

• (2) A court shall not, in pursuance of that section or any other enactment or rule of law, recognise or give effect to—

• (a) any order of a court exercising jurisdiction in relation to insolvency law in a country or territory outside the United Kingdom, or

• (b) any act of a person appointed in such a country or territory to discharge any functions under insolvency law,

in so far as the making of the order or the doing of the act would be prohibited by this Part in the case of a court in England and Wales or Scotland, the High Court in Northern Ireland or a relevant office holder.

• (3) Paragraph (2) does not affect the recognition of a judgment required to be recognised or enforced under or by virtue of the Civil Jurisdiction and Judgments Act 1982 ....

Appropriation of financial collateral under a security financial collateral arrangement

Restrictions on enforcement of financial collateral arrangements, etc.

18A

• (1) Nothing in regulations 16 and 17 prevents the Bank of England imposing a restriction—

• (a) on the enforcement of financial collateral arrangements, or

• (b) on the effect of a security financial collateral arrangement, close out netting provision or set-off arrangement,

in the exercise of its powers under Part 1 of the Banking Act 2009 or under Schedule 11 to the Financial Services and Markets Act 2023.

• (2) For the purpose of paragraph (1) “set-off arrangement” means an arrangement under which two or more debts, claims or obligations can be set off against each other.

Modification of the Insolvency (England and Wales) Rules 2016 and the Insolvency Rules (Northern Ireland) 1991