WHERE THE INSOLVENT IS AN AUTHORISED DEPOSIT TAKER
16.144 Notice of meetings
Where proceedings are taken to wind up an authorised (or former authorised) institution under the Banking Act 1987, or authorised deposit taker (as defined in the Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001) [Note 1], notice of the first meetings must be given to the Financial Services Authority (FSA), (see www.fsa.gov.uk) and to the scheme manager established under section 212(1) of the Financial Services and Markets Act 2000 [Note 2] [Note 3]. See Chapter 80, paragraph 80.3 for further information concerning the FSA and its contact details.
16.145 Payments to depositors
The Financial Services and Markets Act 2000 (Consequential Amendments and Repeals) Order 2001 came in to force on 1 December 2001. As a result of its enforcement, the Banking Act 1987 was repealed and the FSA became responsible for all deposit takers, e.g. banks and building societies, and a new statutory compensation scheme was established by the FSA, operated by the Financial Services Compensation Scheme (FSCS). The FSCS can pay compensation, up to set limits, to eligible consumers for a failure of any authorised firm concerning investment business, deposits or contracts of insurance. See Chapter 80, paragraphs 80.4 and 80.40, and Chapter 80 Annex E, for further information concerning the compensation available and the powers of the FSA.
16.146 Representation at Meetings
The scheme manager is entitled to be represented at the first meetings and may, at any meeting where the manager is entitled to be represented, submit instead of a proof a written statement of voting rights, which for the purpose of voting at a meeting (but for no other purpose) will be treated as if it were a proof [Note 4] [Note 5]. The scheme manager may from time to time submit a further statement, which if submitted, will supersede any statement previously submitted [Note 6].
16.147 Contents of statement
The statement will contain details of the names of creditors in respect of whom an obligation of the scheme manager has arisen or is expected to arise as a result of the insolvency proceedings, the amount of the obligation so arising and the total amount of all such obligations specified in the statement [Note 7].
16.148 Effect on depositors' rights
The voting rights of a creditor named in the statement will be reduced by a sum equal to the amount of the claim for which the scheme manager is entitled to exercise voting rights at the meeting [Note 8].
16.149 Committee member
A representative of the Financial Services Authority can exercise a right to be a member of a liquidation committee. Additionally, a representative of the scheme manager can exercise a similar right [Note 9]. See paragraph 16.139 for further information).
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