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Section 167: Application to determine whether default proceedings to be taken.

Companies Act 1989 · 1989 c. 40View on legislation.gov.uk

Part VII: Financial Markets and Insolvency

This section applies where a relevant insolvency event has occurred in the case of—

a recognised investment exchange or a member or designated non-member of a recognised investment exchange,...
a recognised clearing house or a member of a recognised clearing house, ...
a recognised CSD or a member of a recognised CSD, or
a client which is providing indirect clearing services to an indirect client.

The person referred to in paragraphs (a) to (c) in whose case a relevant insolvency event has occurred is referred to below as "the person in default".

For the purposes of this section a "relevant insolvency event" occurs where—

a bankruptcy order is made,
an award of sequestration is made,
an order appointing an interim receiver is made,
an administration or winding up order is made,
an administrator is appointed under paragraph 14 of Schedule B1 to the Insolvency Act 1986 (appointment by holder of qualifying floating charge) or under paragraph 22 of that Schedule (appointment by company or directors),
a resolution for voluntary winding up is passed, or
an order appointing a provisional liquidator is made.

Where in relation to a person in default a recognised body ("the responsible recognised body")—

has power under its default rules to take action in consequence of the relevant insolvency event or the matters giving rise to it, but
has not done so,

a relevant office-holder appointed in connection with or in consequence of the relevant insolvency event may apply to the appropriate regulator.

The application shall specify the responsible recognised body and the grounds on which it is made.

If the responsible recognised body notifies the appropriate regulator that it proposes to take action under its default rules forthwith, it shall do so; and that duty is enforceable, on the application of the appropriate regulator, by injunction or, in Scotland, by an order under section 45 of the Court of Session Act 1988.

"The appropriate regulator"—

in relation to a recognised investment exchange, means the FCA, and
in relation to a recognised clearing house or recognised CSD, means the Bank of England.

About this text

This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.