|
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| |
| | |
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| “(8A) | Objective 6, which applies in any case in which client assets may be |
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| affected, is to protect those assets. |
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| (8B) | Objective 7 is to minimise adverse effects on institutions (such as |
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| investment exchanges and clearing houses) that support the |
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| operation of financial markets.” |
|
| (4) | In section 8(2) (Condition A: private sector purchaser and bridge bank)— |
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| (a) | in paragraph (b) for “the banking systems of the United Kingdom, |
|
| or” substitute “those systems,”, and |
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| (b) | after paragraph (c) insert “, or |
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| (d) | the protection of any client assets that may be |
|
| |
| (5) | In section 47 (restriction of partial transfers), for subsection (3) substitute— |
|
| “(3) | Provision under subsection (2) may, in particular, refer to— |
|
| (a) | particular classes of deposit; |
|
| (b) | particular classes of client assets.” |
|
| (6) | In the Table in section 261 (index of defined terms), after the entry relating |
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| to “central counterparty clearing services”, insert— |
|
|
|
123 | Page 154, line 24, at end insert— |
|
| “( ) | In section 83 (supplemental), in subsection (2)(d)— |
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| (a) | at the end of sub-paragraph (iii) insert “and”, and |
|
| (b) | for sub-paragraphs (iv) and (v) substitute— |
|
| “(iv) | is not subject to the restriction in section 29(3) |
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| that the securities issued by the bank were |
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| transferred under the original order (as |
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| defined in section 29(1)).” |
|
|
124 | Page 156, line 1, at end insert— |
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| “( ) | In section 1(6) of that Act (table describing provisions of Part 1), in the entry |
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| relating to sections 76 to 81, for “81” substitute “81A”.” |
|
|
125 | Insert the following new Clause— |
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| |
| (1) | The Banking Act 2009 is amended as follows. |
|
| (2) | In section 1 (overview), for the entry in the Table relating to sections 82 and |
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| |
|
|
| |
| | |
|
|
| (3) | In section 20 (directors), after subsection (1) insert— |
|
| “(1A) | Subsection (1) also applies to a director of any undertaking which is |
|
| a banking group company in respect of a specified bank.” |
|
| (4) | After section 36 insert— |
|
| |
| (1) | A property transfer instrument may enable the Bank of England— |
|
| (a) | to remove a director of a specified bank; |
|
| (b) | to vary the service contract of a director of a specified bank; |
|
| (c) | to terminate the service contract of a director of a specified |
|
| |
| (d) | to appoint a director of a specified bank. |
|
| (2) | Subsection (1) also applies to a director of any undertaking which is |
|
| a banking group company in respect of a specified bank. |
|
| (3) | Appointments under subsection (1)(d) are to be on terms and |
|
| conditions agreed with the Bank of England.” |
|
| (5) | For the italic heading before section 82 substitute “Groups”, and after that |
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| |
| “81B | Sale to commercial purchaser and transfer to bridge bank |
|
| (1) | The Bank of England may exercise a stabilisation power in respect |
|
| of a banking group company in accordance with section 11(2) or |
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| 12(2) if the following conditions are met. |
|
| (2) | Condition 1 is that the PRA is satisfied that the general conditions |
|
| for the exercise of a stabilisation power set out in section 7 are met |
|
| in respect of a bank in the same group. |
|
| (3) | Condition 2 (which does not apply in a financial assistance case) is |
|
| that the Bank of England is satisfied that the exercise of the power |
|
| in respect of the banking group company is necessary, having |
|
| regard to the public interest in— |
|
| (a) | the stability of the financial systems of the United Kingdom, |
|
| (b) | the maintenance of public confidence in the stability of |
|
| |
| (c) | the protection of depositors, or |
|
| (d) | the protection of any client assets that may be affected. |
|
| (4) | Condition 3 (which applies only in a financial assistance case) is |
|
| |
| (a) | the Treasury have recommended the Bank of England to |
|
| exercise a stabilisation power on the grounds that it is |
|
| necessary to protect the public interest, and |
|
| (b) | in the Bank’s opinion, exercise of the power in respect of the |
|
| banking group company is an appropriate way to provide |
|
| |
|
|
| |
| | |
|
| (5) | Condition 4 is that the banking group company is an undertaking |
|
| incorporated in, or formed under the law of any part of, the United |
|
| |
| (6) | Before determining whether Condition 2 or 3 (as appropriate) is |
|
| met, the Bank of England must consult— |
|
| |
| |
| |
| (7) | In exercising a stabilisation power in reliance on this section the |
|
| Bank of England must have regard to the need to minimise the |
|
| effect of the exercise of the power on other undertakings in the same |
|
| |
| (8) | In this section “financial assistance case” means a case in which the |
|
| Treasury notify the Bank of England that they have provided |
|
| financial assistance in respect of a bank in the same group for the |
|
| purpose of resolving or reducing a serious threat to the stability of |
|
| the financial systems of the United Kingdom. |
|
| 81C | Section 81B: supplemental |
|
| (1) | In the following provisions references to banks include references |
|
| to banking group companies— |
|
| |
| |
| (2) | Where the Bank of England exercises a stabilisation power in |
|
| respect of a banking group company in reliance on section 81B, the |
|
| provisions relating to the stabilisation powers and the bank |
|
| administration procedure contained in this Act (except sections 7 |
|
| and 8) and any other enactment apply (with any necessary |
|
| modifications) as if the banking group company were a bank. |
|
| (3) | For the purposes of the application of section 143 (grounds for |
|
| applying for bank administration order), the reference in |
|
| subsection (2) to the Bank of England exercising a stabilisation |
|
| power includes a case where the Bank of England intends to |
|
| |
| 81D | Interpretation: “banking group company” &c. |
|
| (1) | In this Part “banking group company” means an undertaking— |
|
| (a) | which is (or, but for the exercise of a stabilisation power, |
|
| would be) in the same group as a bank, and |
|
| (b) | in respect of which any conditions specified in an order |
|
| made by the Treasury are met. |
|
| (2) | An order may require the Bank of England to consult specified |
|
| persons before determining whether the conditions are met. |
|
| |
| (a) | is to be made by statutory instrument, and |
|
| (b) | may not be made unless a draft has been laid before and |
|
| approved by resolution of each House of Parliament. |
|
|
|
| |
| | |
|
| (4) | If an order contains a statement that the Treasury are of the opinion |
|
| that, by reason of urgency, it is necessary to make the order without |
|
| complying with subsection (3)(b)— |
|
| (a) | the order may be made, and |
|
| (b) | the order lapses unless approved by resolution of each |
|
| House of Parliament during the period of 28 days (ignoring |
|
| periods of dissolution, prorogation or adjournment of either |
|
| House for more than 4 days) beginning with the day on |
|
| |
| (5) | The lapse of an order under subsection (4)(b)— |
|
| (a) | does not invalidate anything done under or in reliance on |
|
| the order before the lapse and at a time when neither House |
|
| has declined to approve the order, and |
|
| (b) | does not prevent the making of a new order (in new terms). |
|
| (6) | Undertakings are in the same group for the purposes of sections |
|
| 81B, 81C and this section if they are group undertakings in respect |
|
| |
| (7) | Expressions defined in the Companies Act 2006 have the same |
|
| meaning in section 81B and this section as in that Act.” |
|
| (6) | In the Table in section 259 (statutory instruments), in Part 1 after the entry |
|
| relating to section 78 insert— |
|
| | Meaning of “banking group |
| Draft affirmative resolution |
| | | | | | (except for urgent cases)”. |
| | |
|
| (7) | In the Table in section 261 (index of defined terms), after the entry relating |
|
| to “bank insolvency order” insert— |
|
|
126 | Insert the following new Clause— |
|
| “Application to investment firms |
|
| (1) | The Banking Act 2009 is amended as follows. |
|
| (2) | In section 1 (overview), after the entry in the Table relating to sections 84 to |
|
| |
|
| (3) | In section 2 (interpretation: “bank”), at the end insert— |
|
| “(8) | Section 89A applies this Part to investment firms with |
|
| |
| (4) | In section 75(5) (power to change law: application to other institutions), |
|
| omit the “or” following paragraph (c) and after that paragraph insert— |
|
| “(ca) | to investment firms,”. |
|
|
|
| |
| | |
|
| (5) | After section 89 (and in Part 1) insert— |
|
| |
| 89A | Application to investment firms |
|
| (1) | This Part applies to investment firms as it applies to banks, subject |
|
| to the modifications in subsection (2). |
|
| (2) | Ignore sections 1(2)(b), 4(2)(b) and (6), 5(1)(b), 7(7), 8(2)(c) and |
|
| |
| (6) | After section 159 insert— |
|
| “159A | Application to investment firms |
|
| This Part applies to investment firms as it applies to banks.” |
|
| (7) | After section 258 insert— |
|
| |
| (1) | In this Act “investment firm” means a UK institution which is (or, |
|
| but for the exercise of a stabilisation power, would be) an |
|
| investment firm for the purposes of Directive 2006/49/EC on the |
|
| capital adequacy of investment firms and credit institutions. |
|
| (2) | But “investment firm” does not include— |
|
| (a) | an institution which is also— |
|
| (i) | a bank (within the meaning of Part 1), |
|
| (ii) | a building society (within the meaning of section 119 |
|
| of the Building Societies Act 1986), or |
|
| (iii) | a credit union (within the meaning of section 31 of |
|
| the Credit Unions Act 1979 or Article 2(2) of the |
|
| Credit Unions (Northern Ireland) Order 1985), or |
|
| (b) | an institution which is of a class or description specified in |
|
| an order made by the Treasury. |
|
| |
| (a) | is to be made by statutory instrument, and |
|
| (b) | may not be made unless a draft has been laid before and |
|
| approved by resolution of each House of Parliament. |
|
| (4) | If an order contains a statement that the Treasury are of the opinion |
|
| that, by reason of urgency, it is necessary to make the order without |
|
| complying with subsection (3)(b)— |
|
| (a) | the order may be made, and |
|
| (b) | the order lapses unless approved by resolution of each |
|
| House of Parliament during the period of 28 days (ignoring |
|
| periods of dissolution, prorogation or adjournment of either |
|
| House for more than 4 days) beginning with the day on |
|
| |
| (5) | The lapse of an order under subsection (4)(b)— |
|
| (a) | does not invalidate anything done under or in reliance on |
|
| the order before the lapse and at a time when neither House |
|
| has declined to approve the order, and |
|
| (b) | does not prevent the making of a new order (in new terms). |
|
|
|
| |
| | |
|
| (6) | In subsection (1) “UK institution” means an institution which is |
|
| incorporated in, or formed under the law of any part of, the United |
|
| |
| (8) | In the Table in section 259 (statutory instruments), in Part 7 after the entry |
|
| relating to section 257 insert— |
|
| | Meaning of “investment firm” |
| Draft affirmative resolution |
| | | | | | (except for urgent cases)”. |
| | |
|
| (9) | In the Table in section 261 (index of defined terms), after the entry relating |
|
| to “inter-bank payment system”, insert— |
|
|
| (10) | In section 214B(1)(a) of FSMA 2000 (contribution to costs of special |
|
| resolution regime) for “or credit union” substitute “, credit union or |
|
| |
127 | Insert the following new Clause— |
|
| “Application to UK clearing houses |
|
| (1) | The Banking Act 2009 is amended as follows. |
|
| (2) | In section 1 (overview), after the entry in the Table relating to section 89A, |
|
| |
|
| (3) | In section 2 (interpretation: “bank”), after subsection (8) insert— |
|
| “(9) | Section 89B applies this Part to UK clearing houses with |
|
| |
| (4) | After section 39 insert— |
|
| “39A | Banks which are clearing houses |
|
| Sections 89C to 89E (clearing house rules, membership and |
|
| recognition) apply in relation to a bank which would be a UK |
|
| clearing house but for section 89G(2) (exclusion of banks etc from |
|
| definition of UK clearing house) as they apply in relation to a UK |
|
| |
| (5) | In section 75(5) (power to change law: application to other institutions), |
|
| after paragraph (ca) insert— |
|
| “(cb) | to UK clearing houses, or”. |
|
| (6) | After section 89A (and in Part 1) insert— |
|
|