New regulations to align insolvency legislation are a ‘stopgap measure’

New regulations to align insolvency legislation are a ‘stopgap measure’

The draft Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2017 have now been made by Parliament as the Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018. Simon Hunter, barrister at 3 Stone Buildings, says the regulations are identical to the draft version circulated in 2017.

When will the new regulations come into force?

Parts 1 and 5 of the Small Business, Enterprise and Employment Act 2015 (Consequential Amendments, Savings and Transitional Provisions) Regulations 2018, SI 2018/208, came into force in part on the day after they were made, which was 20 February 2018 (therefore 21 February 2018). Parts 2, 3 and 4 will come into force 21 days after the date the regulations were made, ie on 13 March 2018. Practitioners should note the transitional provisions made in Part 4 of the regulations.

What is the purpose of the regulations?

The purpose of these regulations is to start the process of aligning the special insolvency regimes that exist for financial institutions and other connected parties and bodies with the reforms to the general insolvency legislation which came into effect on 6 April 2017. The core of those reforms to the general insolvency legislation was the removal of various of the requirements to hold physical meetings.

The regulations are, in essence, a stopgap measure. The explanatory memorandum produced to accompany them admits that the process of aligning the special regimes with the reformed general regime will take some time.

For those parts of the special regimes where the impact of the reforms is clear, they have been varied by the regulations to align with the general position. Where more work is needed to ascertain what the impact will be, the regulations expressly disapply the reforms, thereby preserving the position as it was before 6 April 2017. No doubt this will not be the last that practitioners hear of this subject.

Furthermore, practitioners will be aware that the Insolvency Rules

Subscription Form

Related Articles:
Latest Articles:

Already a subscriber? Login
RELX (UK) Limited, trading as LexisNexis, and our LexisNexis Legal & Professional group companies will contact you to confirm your email address. You can manage your communication preferences via our Preference Centre. You can learn more about how we handle your personal data and your rights by reviewing our  Privacy Policy.

Access this article and thousands of others like it free by subscribing to our blog.

Read full article

Already a subscriber? Login

About the author:
Kathy specialises in restructuring and cross-border insolvency. She qualified as a solicitor in 1995 and has since worked for Weil Gotshal & Manges and Freshfields. Kathy has worked on some of the largest restructuring cases in the last decade, including Worldcom, Parmalat, Enron and Eurotunnel.