Section 372

The FCA may present a petition to the court— under section 264 of the 1986 Act (or Article 238 of the 1989 Order) for a bankruptcy order to be made against an individual; or under section 2 or 5 of the 2016 Act for the sequestration of the estate of an individual. The PRA may present a petition to the court— under section 264 of the 1986 Act (or Article 238 of the 1989 Order) for a bankruptcy order to be made against an individual who is a PRA-regulated person; under section 2 or 5 of the 2016 Act for the sequestration of the estate of an individual who is a PRA-regulated person. But a petition may be presented by virtue of subsection (1) or (1A) only on the ground that— the individual appears to be unable to pay a regulated activity debt; or the individual appears to have no reasonable prospect of being able to pay a regulated activity debt. An individual appears to be unable to pay a regulated activity debt if he is in default on an obligation to pay a sum due and payable under an agreement. An individual appears to have no reasonable prospect of being able to pay a regulated activity debt if— a regulator has served on him a demand requiring him to establish to the satisfaction of that regulator that there is a reasonable prospect that he will be able to pay a sum payable under an agreement when it falls due; at least three weeks have elapsed since the demand was served; and the demand has been neither complied with nor set aside in accordance with rules. A demand made under subsection (4)(a) is to be treated for the purposes of the 1986 Act (or the 1989 Order) as if it were a statutory demand under section 268 of that Act (or Article 242 of that Order). For the purposes of a petition presented in accordance with subsection (1)(b) or (1A)(b)— the regulator by which the petition is presented is to be treated as a qualified creditor; and a ground mentioned in subsection (2) constitutes apparent insolvency. “Individual” means an individual— who is, or has been, an authorised person; or who is carrying on, or has carried on, a regulated activity in contravention of the general prohibition. “Agreement” means an agreement the making or performance of which constitutes or is part of a regulated activity carried on by the individual concerned. “Rules” means— in England and Wales, rules made under section 412 of the 1986 Act; in Scotland, rules made by order by the Treasury, after consultation with the Scottish Ministers, for the purposes of this section; and in Northern Ireland, rules made under Article 359 of the 1989 Order.

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Source: legislation.gov.uk · retrieved 2026-09-04