Q&As

When do the changes to the Recast Regulation on Insolvency, Regulation (EU) 2015/848 and other legislation kick in for Brexit?

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Published on LexisPSL on 28/10/2020

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

  • When do the changes to the Recast Regulation on Insolvency, Regulation (EU) 2015/848 and other legislation kick in for Brexit?

When do the changes to the Recast Regulation on Insolvency, Regulation (EU) 2015/848 and other legislation kick in for Brexit?

Assuming no deal on insolvency, then the Insolvency (Amendment) (EU Exit) Regulations 2019 (Insolvency Brexit Regulations), SI 2019/146, kick in from IP completion day (11 pm on 31 December 2020). This impacts various legislation, including this non-exhaustive list:

  1. Recast Regulation on Insolvency, Regulation (EU) 2015/848 (see Practice Note: Brexit—impact on Recast Regulation on Insolvency)

  2. Insolvency Act 1986 (IA 1986)

  3. Insolvency (England and Wales) Rules 2016, SI 2016/1024

  4. Cross-Border Insolvency Rules 2006 (CBIR 2006), SI 2006/1030 (see News Analysis: Brexit impact on Cross-Border Insolvency Regulations 2006 (CBIR 2006)

The saving provisions within the Insolvency Brexit Regulations, SI 2019/146, reg 4, now mirror the gateway in Article 67(3)(c) of the Withdrawal Agreement (following amendments made to the Insolvency Brexit Regulations, SI 2019/146, by the Insolvency (Amendment) (EU Exit) Regulations 2020, SI 2020/647) for the post-IP completion day application of EU rules (ie even after the transition period under the Withdrawal Agreement has ended)—the Recast Regulation on Insolvency continues to apply where main proceedings (as defined in the Insolvency Brexit Regulations, SI 2019/146, reg 4) opened before IP completion day. IP completion day is defined in the Withdrawal Act as 11pm on 31 December 2020 (see European Union (Withdrawal Agreement) Act 2020, ss 39(1)–39(5)).

The effect is to preserve the

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