Commentary Part 6 – Special Administration for Operators of Certain Infrastructure Systems
265.Part 6 of the Act (sections 111 to 128 and Schedules 6 and 7) establish a new special administration regime known as “FMI administration”. This will apply to “infrastructure companies”, as defined in section 112, that become insolvent. Part 6 also restricts powers of persons other than the Bank of England in the event of the insolvency of an infrastructure company.
266.Section 112 defines the term “infrastructure company”. The following companies are “infrastructure companies”: recognised inter-bank payment systems and securities settlement systems. This amendment also allows the Treasury to designate a company as an “infrastructure company” where the company is a key service provider to a recognised inter-bank payment system or a securities settlement system.
267.Section 113 defines certain terms for the purposes of the new Part 6.
268.Section 114 defines the term “FMI administration order” for the purposes of Part 6. FMI administration orders will be made by the court and have the effect of appointing an “FMI administrator” to manage the affairs of the infrastructure company.