delete The Insolvency Act 1986 (Amendment) (Administrative Receivership and Capital Market Arrangements) Order 2003
This Order (2003 No. xxx) amends the Insolvency Act 1986 by modifying Schedule 2A which defines 'capital market arrangements' for insolvency purposes. It expands the definition to include security grants to: (i) parties issuing capital market investments or their trustees, and (ii) trustees for parties providing finance to others. It also clarifies that 'provision of finance' includes indemnities. The changes appear to broaden the scope of arrangements subject to special administrative receivership rules.
This regulation expands regulatory scope rather than reducing it, contrary to post-Brexit deregulation objectives. By broadening the definition of 'capital market arrangement' subject to special insolvency procedures, it adds complexity and compliance costs for parties structuring financing arrangements. The vague, expansive language creates legal uncertainty that disadvantages the City of London's competitiveness against New York, Singapore, and Dubai for structured finance. Such ambiguous rules increase transaction costs and may drive business to more predictable jurisdictions. The amendment appears to have been EU-influenced retained law that was never properly scrutinised by Parliament, making it a candidate for deletion under the program's objectives of removing inherited EU bureaucratic burden.