The Credit Institutions (Reorganisation and Winding Up) Directive and implementing Regulations
The Credit Institutions (Reorganisation and Winding Up) Directive and implementing Regulations

The following Financial Services practice note provides comprehensive and up to date legal information covering:

  • The Credit Institutions (Reorganisation and Winding Up) Directive and implementing Regulations
  • Purpose of the Credit Institutions (Reorganisation and Winding Up) Directive
  • Amendment of CIWUD by BRRD
  • UK implementing Regulations
  • Credit Institutions (Reorganisation and Winding up) Regulations 2004
  • UK and EEA credit institutions and investment firms
  • Insolvent UK credit institutions and investment firms
  • Prohibition of winding up EEA credit institutions and investment firms in the UK and recognition of EEA winding up and reorganisation measures
  • The impact of Brexit

BREXIT: 11pm (GMT) on 31 December 2020 (‘IP completion day’) marked the end of the Brexit transition/implementation period entered into following the UK’s withdrawal from the EU. Following IP completion day, key transitional arrangements come to an end and significant changes begin to take effect across the UK’s legal regime. This document contains guidance on subjects impacted by these changes. Before continuing your research, see: Brexit and financial services: materials on the post-Brexit UK/EU regulatory regime.

Purpose of the Credit Institutions (Reorganisation and Winding Up) Directive

The Credit Institutions (Reorganisation and Winding Up) Directive 2001/24/EC (CIWUD) was originally created to ensure that a credit institution and its branches in other Member States are reorganised or wound up according to the principles of unity and universality, with the effect that there will be only one set of insolvency proceedings in which the credit institution is treated as one entity. The CIWUD therefore ensured that the assets of the institution, wherever they are located, will be included in a single winding-up process, eliminating the confusion and uncertainty of secondary proceedings.

The CIWUD sought to prevent the separation of assets of the credit institution so that creditors outside of the Member State that is the home Member State of the credit institution are not placed at a disadvantage to creditors in the home Member State.

The insolvency laws of the home Member State where

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