The Payment and Electronic Money Institution Insolvency (Scotland) (Amendment) Rules 2025
The Payment and Electronic Money Institution Insolvency (Scotland) (Amendment) Rules 2025 amend the 2022 rules governing the insolvency process for payment and electronic money institutions in Scotland.
The amendments correct drafting errors flagged by the Joint Committee on Statutory Instruments, specifically in relation to administrator notification requirements, and add further details needed in those notices.
The changes improve the accuracy and clarity of the insolvency procedure, particularly concerning the content of notices issued by administrators.
Arguments For
- Intended benefits: Corrects errors in the original 2022 rules, improving clarity and accuracy of the insolvency process in Scotland.
- Evidence cited: The amendments address comments and identified errors from the Joint Committee on Statutory Instruments' Twenty-Sixth Report of Session 2022-23.
- Implementation methods: The amendments are incorporated directly into the existing Payment and Electronic Money Institution Insolvency (Scotland) Rules 2022.
- Legal/historical basis: The rules are made under the powers conferred by section 411(1A)(b), (2C) of the Insolvency Act 1986, as applied and modified by regulation 37 of the Payment and Electronic Money Institution Insolvency Regulations 2021.
Arguments Against
- Potential impacts: While correcting errors, the amendments may require additional administrative work for administrators.
- Implementation challenges: Administrators need to be aware of and implement the changes promptly to ensure compliance.
- Alternative approaches: No alternative approaches are explicitly mentioned in the document.
- Unintended effects: It is not possible, with current information, to determine whether any unintended effects will emerge from these minor amendments.
Citation
- These Rules may be cited as the Payment and Electronic Money Institution Insolvency (Scotland) (Amendment) Rules 2025.
Commencement 2. These Rules come into force on 26 February 2025.
Extent 3. These Rules extend to Scotland only.
Amendment of the Payment and Electronic Money Institution Insolvency (Scotland) Rules 2022 4. The Payment and Electronic Money Institution Insolvency (Scotland) Rules 2022 are amended as follows. 5. In rule 10 (further notification), in paragraph (b) for 'exercised', substitute 'executed'. 6. In rule 15 (notification and advertisement of administrator's appointment)- 7. (a) in paragraph (b), for 'exercised', substitute 'executed'; 8. (b) omit paragraph . 9. In rule 16 (notice requiring statement of affairs)- 10. (a) after paragraph (d), insert- 11. '(e) details of the court and the relevant court reference number, 12. (f) the full name, registered address, registered number, all trading names and principal trading office of the institution, 13. (g) the name, business address and IP number of the person or persons appointed as administrator and the date of their appointment.'; 14. (b) after paragraph , insert- 15. '(3A) The notice must be authenticated and dated by the administrator.'. 16. In rule 22 (expenses of statement of affairs), in paragraph , omit 'and a statutory declaration'. 17. In rule 24 (administrator's proposals), in paragraph (m), for '', in both places it appears, substitute '(l)'. 18. In rule 60 (correspondence instead of meetings), in paragraph , for 'a at', substitute 'at a'. 19. In rule 85 (content of progress report), in paragraph (b)(ii), after 'is submitted under', insert 'rule'. 20. In rule 119 (adjudication of claims)- 21. (a) at the start of paragraph , for 'the', substitute 'The'; 22. (b) in paragraph , for '(b))', substitute '(b)'. 23. In rule 127 (order of priority in distribution)- 24. (a) in paragraph (a)(iii), for 'Regulation', substitute 'regulation'; 25. (b) in paragraph , after 'all expenses and debts mentioned in paragraph', insert ''. 26. In rule 128 (assets to be distributed in respect of the accounting periods), in paragraph (b), after 'the meaning of section 386 of', insert 'the'. 27. In rule 165 (application)- 28. (a) in paragraph , after '', insert ', (2A)'; 29. (b) after paragraph , insert- 30. '(2A) Rule 166A does not apply where a notice is required to be given or delivered under the Regulations or these Rules.'. 31. After rule 166 (the form), insert- ' Content of notice to be sent by the administrator 166A. Any notice required to be sent by the administrator under the Regulations or these Rules must- 32. (a) contain details of the court and the relevant court reference number, 33. (b) contain the full name, registered address, registered number, all trading names and principal trading office of the institution, 34. (c) contain the name, business address and IP number of the person or persons appointed as administrator and the date of their appointment, 35. (d) be authenticated and dated by the administrator.'. 36. In rule 169 (electronic delivery - general), in paragraph , for '9.00am', substitute '09.00 hours'. 37. In rule 177 (content of notices to be gazetted), in paragraph , for 'paragraph and rule ', substitute 'paragraphs and '. 38. In the heading of rule 206 (application of the IA 1986 and the Company Directors Disqualification Act), after 'Disqualification Act', insert '1986'.
This section details the amendments made to the Payment and Electronic Money Institution Insolvency (Scotland) Rules 2022.
Specific rules are listed, and changes involve substituting words (e.g., 'executed' for 'exercised'), omitting paragraphs, and inserting new paragraphs to add supplementary detail.
The changes primarily concern clarifying notification and administrative processes, particularly those concerning the requirements for information included in administrator notices.
3rd February 2025 Jeff Smith Vicky Foxcroft Two of the Lords Commissioners of His Majesty's Treasury
EXPLANATORY NOTE (This note is not part of the Rules) These Rules amend the Payment and Electronic Money Institution Insolvency (Scotland) Rules 2022 (S.I. 2022/1239) ('2022 Rules') which set out the procedure in Scotland for the payment institution special administration process and electronic money institution special administration process under the Payment and Electronic Money Institution Insolvency Regulations 2021 (S.I. 2021/716). Rule 4 amends rule 16 of the 2022 Rules to insert new requirements for the content of notices to be delivered by the administrator under this rule. This amendment was made to address the Joint Committee on Statutory Instrument's comments in their Twenty-Sixth Report of Session 2022-23 regarding the contents of the notices of statements of affairs requirements to be delivered by the administrator under the 2022 Rules. These Rules also correct a drafting error identified by the Joint Committee on Statutory Instruments in their Twenty-Sixth Report of Session 2022-23 and other minor errors. A full impact assessment has not been produced for this instrument as no, or no significant, impact on the private, voluntary or public sector is foreseen.
This explanatory note provides background information on the amendments.
It clarifies that the changes address comments from the Joint Committee on Statutory Instruments and correct drafting errors in the 2022 rules.
The note also states that a full impact assessment wasn't deemed necessary due to the expected minimal impact on the various sectors.