Section 374

This section applies if a person ... presents 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; under section 2 or 5 of the 2016 Act for the sequestration of the estate of an individual; or under section 6 of the 2016 Act for the sequestration of the estate belonging to or held for or jointly by the members of an entity mentioned in subsection (1) of that section. The appropriate regulator is entitled to be heard— at the hearing of the petition; and at any other hearing in relation to the individual or entity under— Part IX of the 1986 Act; Part IX of the 1989 Order; or the 2016 Act. In the case of a petition presented under Article 238 of the 1989 Order, a copy of the report prepared under Article 248 of that Order must also be sent to the appropriate regulator. A person appointed for the purpose by the appropriate regulator is entitled— to attend any meeting of creditors of the individual or entity; to attend any meeting of a committee established under section 301 of the 1986 Act (or Article 274 of the 1989 Order); to attend any meeting of commissioners held under paragraph 26 or 27 of schedule 6 to the 2016 Act; and to make representations as to any matter for decision at such a meeting. The appropriate regulator or a person appointed by the appropriate regulator is entitled to participate in (but not vote in) a creditors’ decision procedure by which a decision about any matter is sought from the creditors of the individual or entity. “Individual” means an individual who— is, or has been, an authorised person; or is carrying on, or has carried on, a regulated activity in contravention of the general prohibition. “Entity” means an entity which— is, or has been, an authorised person; or is carrying on, or has carried on, a regulated activity in contravention of the general prohibition. “The appropriate regulator” means— where the individual or entity is a PRA-regulated person, each of the FCA and the PRA, except that the references in subsections (4) and (4A) to a person appointed by the appropriate regulator are to be read as references to a person appointed by either the FCA or the PRA; in any other case, the FCA. But where the petition was presented by a regulator “the appropriate regulator” does not include the regulator which presented the petition.

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