The Regulations make amendments to the Insolvency (Amendment) (EU Exit) Regulations 2019 which are required as a result of the extension to the UK’s exit from the EU.
The majority of the amendments arise from the introduction of new Scottish Insolvency Rules, which came into force on 6 April 2019, and which the previous SI could not address. Not amending these new rules to take account of EU exit would create uncertainty for businesses and consumers in Scotland, and an inefficient insolvency process – undermining confidence and the UK insolvency regime’s reputation.
Additionally, Article 25 of the EU Insolvency Regulation 2015 (EUIR), which came into force on 26 June 2019, and so could not be revoked by the previous SI, will require revocation so as to be clear that there is no legal obligation to integrate UK insolvency registers with the EU.
