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COMMONS AMENDMENT

3Clause 11, page 7, line 13, leave out from ("persons)") to end of line 28 and insert ("there is inserted--
"Insolvent estates: joint tenancies.
421A.--(1) This section applies where--
(a) an insolvency administration order has been made in respect of the insolvent estate of a deceased person,
(b) the petition for the order was presented after the commencement of this section and within the period of five years beginning with the day on which he died, and
(c) immediately before his death he was beneficially entitled to an interest in any property as joint tenant.
(2) For the purpose of securing that debts and other liabilities to which the estate is subject are met, the court may, on an application by the trustee appointed pursuant to the insolvency administration order, make an order under this section requiring the survivor to pay to the trustee an amount not exceeding the value lost to the estate.
(3) In determining whether to make an order under this section, and the terms of such an order, the court must have regard to all the circumstances of the case, including the interests of the deceased's creditors and of the survivor; but, unless the circumstances are exceptional, the court must assume that the interests of the deceased's creditors outweigh all other considerations.
(4) The order may be made on such terms and conditions as the court thinks fit.
(5) Any sums required to be paid to the trustee in accordance with an order under this section shall be comprised in the estate.
(6) The modifications of this Act which may be made by an order under section 421 include any modifications which are necessary or expedient in consequence of this section.
(7) In this section, "survivor" means the person who, immediately before the death, was beneficially entitled as joint tenant with the deceased or, if the person who was so entitled dies after the making of the insolvency administration order, his personal representatives.
(8) If there is more than one survivor--
(a) an order under this section may be made against all or any of them, but
(b) no survivor shall be required to pay more than so much of the value lost to the estate as is properly attributable to him.
(9) In this section--
"insolvency administration order" has the same meaning as in any order under section 421 having effect for the time being,
"value lost to the estate" means the amount which, if paid to the trustee, would in the court's opinion restore the position to what it would have been if the deceased had been adjudged bankrupt immediately before his death."
(2) In subsection (1) of section 421, after "apply" there is inserted "in relation".")

Lord McIntosh of Haringey: My Lords, I beg to move that the House do agree with the Commons in their Amendment No. 3.

Moved, That the House do agree with the Commons in their Amendment No. 3.--(Lord McIntosh of Haringey.)

[Amendment No. 3A not moved.]

On Question, Motion agreed to.

29 Nov 2000 : Column 1351

COMMONS AMENDMENT

4Clause 14, page 8, line 32, at end insert--
("(2) For the purposes of the Financial Services and Markets Act 2000, the functions conferred on the Financial Services Authority by virtue of Schedules 1 and 2 are to be treated as conferred by that Act.
(3) Section 356 of that Act (Authority's powers to participate in proceedings: company voluntary arrangements) is amended as follows--
(a) for subsection (1), there is substituted--
"(1) Where a voluntary arrangement has effect under Part I of the 1986 Act in respect of a company or insolvent partnership which is an authorised person, the Authority may apply to the court under section 6 or 7 of that Act.",
(b) for subsection (2), there is substituted--
"(2) Where a voluntary arrangement has been approved under Part II of the 1989 Order in respect of a company or insolvent partnership which is an authorised person, the Authority may apply to the court under Article 19 or 20 of that Order.",
(c) in subsection (3), for "either" there is substituted "any".")

Lord McIntosh of Haringey: My Lords, I beg to move that this House do agree with the Commons in their Amendment No. 4. I should like to speak also to Amendments Nos. 5, 19 and 29. The amendments deal with an issue which I brought to the attention of the House at Report stage when I explained that following the successful passage of the Financial Services and Markets Act 2000 through Parliament, we would need to consider whether there were any implications for this Bill.

Part XXIV of the Financial Services and Markets Act sets out the rights of the Financial Services Authority to participate in insolvency procedures involving regulated persons, including companies doing financial services business. I am sure the House will agree that it would be both incongruous and create a gap in the authority's regulatory powers if the authority was not to have similar rights in respect of the new company voluntary arrangement provisions to those it has in other types of insolvency procedures. To omit such powers from the Bill may be potentially damaging to the interests of the consumers.

We have also taken the opportunity to deal with a matter which was omitted from the Financial Services and Markets Act when it was passing through Parliament. Amendments Nos. 4 and 5 provide that the authority should be given the right to apply to the court on the ground that any of the company's creditors or any other person is dissatisfied by the actions of the supervisor, and for the authority to be heard if such an application is made by another. That applies whether or not the voluntary arrangement was preceded by a moratorium, or whether it is here or in Northern Ireland.

Moved, That the House do agree with the Commons in their Amendment No. 4.--(Lord McIntosh of Haringey.)

On Question, Motion agreed to.

29 Nov 2000 : Column 1352

COMMONS AMENDMENT

5Clause 16, page 9, line 1, after ("except") insert ("section 14(3),")

Lord McIntosh of Haringey: My Lords, I beg to move that this House do agree with the Commons in their Amendment No. 5.

Moved, That the House do agree with the Commons in their Amendment No. 5.--(Lord McIntosh of Haringey.)

On Question, Motion agreed to.

COMMONS AMENDMENT

6Schedule 1, page 10, line 17, after ("is") insert ("or has been")

Lord McIntosh of Haringey: My Lords, I beg to move that the House do agree with the Commons in their Amendment No. 6. This amendment makes it explicit on the face of the Bill that Schedule AI will apply where there is or has been a moratorium in force. Previously, new Section 1A(2)(d) provided that the procedure would apply only while a moratorium was in force. However, the scheme set out in Schedule AI envisages that certain acts will necessarily take place after the moratorium has come to an end. This is because it relates not only to approval but also implementation of a voluntary arrangement which, by definition, takes place once a moratorium has ended.

Moved, That the House do agree with the Commons in their Amendment No. 6.--(Lord McIntosh of Haringey.)

On Question, Motion agreed to.

COMMONS AMENDMENT

7Schedule 1, page 10, line 37, at end insert--
(""money market contract" and "money market charge" have the meanings given by the Financial Markets and Insolvency (Money Market) Regulations 1995 ("the 1995 regulations"),")

Lord McIntosh of Haringey: My Lords, I beg to move that the House do agree with the Commons in their Amendment No. 7. I should like to speak also to Amendments Nos. 8 to 11 and 14 to 16. These amendments will ensure that the company voluntary arrangement moratorium does not prejudice the existing modifications of insolvency law relating to "money market contracts", "money market charges" and "related contracts" as defined in the Financial Markets and Insolvency (Money Market) Regulations 1995, and "system-charges" as defined in the Financial Markets and Insolvency Regulations 1996. The amendments are necessary to protect the status quo and to enable financial markets to continue to function in the event of the insolvency of one of the market participants.

Moved, That the House do agree with the Commons in their Amendment No. 7.--(Lord McIntosh of Haringey.)

On Question, Motion agreed to.

29 Nov 2000 : Column 1353

COMMONS AMENDMENTS

8Schedule 1, page 10, line 40, at end insert--
(""related contract" has the meaning given by the 1995 regulations,")
9Page 10, line 42, at end insert--
(""system-charge" has the meaning given by the Financial Markets and Insolvency Regulations 1996,")
10Page 11, line 11, after ("contract") insert (", a money market contract or a related contract")
11Page 11, line 12, after ("charge") insert (", a money market charge or a system-charge")

Lord McIntosh of Haringey: My Lords, I beg to move that the House do agree with the Commons in their Amendments Nos. 8 to 11.

Moved, That the House do agree with the Commons in their Amendments Nos. 8 to 11.--(Lord McIntosh of Haringey.)

On Question, Motion agreed to.


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