Insolvency Practitioners will welcome the UK Jurisdiction Taskforce’s (UKJT) Legal Statement on Digital Assets and English Insolvency Law, published on 17 April 2024.
The FCA has published finalised guidance for insolvency practitioners (IPs) appointed (or looking to be appointed) over regulated firms.
This sets out the FCA’s expectations as to how IPs can ensure firms continue to meet their regulatory obligations both before an appointment and during the course of an insolvency process. It confirms the FCA’s view of what would constitute good practice, as well as linking in to some of the existing statutory obligations on regulated firms and/or IPs.
The latest news and developments in retail mortgage lending and regulation.
This month in summary:
News
Government updates on the pandemic
There have been a number of updates that will affect lenders in respect of the pandemic. The key stories are:
The purpose of this note
The profound business and market interruption already caused by the COVID-19 outbreak has introduced insolvency risks for many otherwise healthy businesses.
This note summarises proposed insolvency law reforms announced on 28 March 2020 with some commentary on other recent COVID-19 developments in this area, including:
Introduction
After a turbulent year in British politics, the UK is now clearly charting a momentous course out of the European Union.
Leaving the European Union is likely to have far-reaching implications, particularly for International Banks who have traditionally used London as a gateway for accessing financial services markets in the rest of Europe. What will happen to single market access in the long term remains to be seen.
On 4 December 2019, the Supreme Court handed down its judgment in MacDonald and another (Respondents) v Carnbroe Estates Ltd (Appellant) (Scotland) [2019] UKSC 57. The appeal concerned the interpretation of ‘adequate consideration’ under section 242 of the Insolvency Act 1986 (the “Act”) and the remedies that courts can apply if there is a gratuitous alienation, and inadequate consideration paid for the transaction in question.
A Sheriff has answered this question in the affirmative and given reasoning which will be helpful for trustees (under a trust deed) in considering whether to raise sequestration proceedings against the debtor.
Background
The Sheriff Court at Airdrie was asked in April 2019 to comment on the ability of a trustee under a trust deed to summarily apply for a debtor's sequestration in the case of David Mond v Craig Booth.
A breathing space scheme for individuals with problem debt will be implemented by 2021, the Treasury has confirmed. Draft regulations are expected later this year.
Lenders, loan servicers, debt purchasers and other acquiring funds can now begin taking steps to ensure that they are prepared for this change.
What is breathing space?
On 31 October the Supreme Court handed down the judgment in the case of Dooneen Limited t/a McGuiness Associates v David Mond.
The judgment confirmed that a trustee is not entitled to property discovered after a trust deed has been terminated and the trustee discharged and therefore provides some much needed clarity for banks, debtors and trustees who face this situation.
The facts
The Court of Session has found that the EU Regulations to found jurisdiction for Insolvency proceedings based on COMI do not apply in a purely UK matter.
Bank Leumi (UK) plc (The bank) lodged a petition to make an Administration Order in respect of Screw Conveyor Limited (the company). While the company's registered office was in Birmingham, the bank stated in its petition that the company's centre of main interest (COMI) was in Scotland.