Q&As

How does Brexit impact the definition of ‘Art 1.2 undertakings’?

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Published on LexisPSL on 16/03/2021

The following Restructuring & Insolvency Q&A provides comprehensive and up to date legal information covering:

  • How does Brexit impact the definition of ‘Art 1.2 undertakings’?
  • Definition of ‘Article 1.2 undertaking’ under IR 2016 pre-IP completion day
  • Definition of ‘Article 1.2 undertaking’ under IR 2016 post-IP completion day
  • Ambulatory references
  • Summary
  • Useful links

How does Brexit impact the definition of ‘Art 1.2 undertakings’?

This Q&A considers how Brexit impacts the definition of ‘Art 1.2 undertakings’ in the Insolvency (England and Wales) Rules 2016 (IR 2016), SI 2016/1024.

Definition of ‘Article 1.2 undertaking’ under IR 2016 pre-IP completion day

From IP completion day (11 pm on 31 December 2020), the Insolvency (Amendment) (EU Exit) Regulations 2019 (Brexit SI 2019/146), SI 2019/146, made a number of changes to IR 2016, SI 2016/1024. Prior to IP completion day, IR 2016, SI 2016/1024, r 1.2 provided that an ‘Article 1.2 undertaking’ means one of the following within the meaning of Article 1.2 of Regulation (EU) 2015/848 of the European Parliament and of the Council (the EU Regulations):

  1. (a) an insurance undertaking

  1. (b) a credit institution

  2. (c) an investment undertaking which provides services involving the holding of funds or securities for third parties

  3. (d) a collective investment undertaking’

The phrase, ‘Article 1.2 undertaking’, is used throughout IR 2016, SI 2016/1024, and is required wording in certain forms where it constitutes part of the prescribed information (eg in administration forms, see IR 2016, SI 2016/1024, r 3.3(2)(g)).

The terms which are defined in IR 2016, SI 2016/1024, r 1.2 include some terms defined by the Insolvency Act 1986 (IA 1986) for limited purposes which are applied generally by IR 2016, SI 2016/1024; such terms have the meaning given

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