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Schedule 10 (which contains amendments of, or connected with, the Financial |
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Services Act 2012 and amendments of provisions amended by that Act) has |
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122 | Orders and regulations |
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(1) | Any power of the Treasury to make an order or regulations under this Act is |
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exercisable by statutory instrument. |
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(2) | A statutory instrument containing an order or regulations under this Act is |
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subject to annulment in pursuance of a resolution of either House of |
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(a) | the instrument contains only provision made under section 127 |
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(b) | the instrument is required by subsection (4) or any other enactment to |
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be laid in draft before, and approved by a resolution of, each House. |
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(3) | Subsection (4) applies to a statutory instrument that contains (with or without |
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(a) | regulations under section 8 (building societies: power to make |
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provision about ring-fencing); |
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(b) | an order under section 32(4) (meaning of “payment system”); |
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(c) | an order under section 124 (power to make further consequential |
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amendments) that amends or repeals primary legislation; |
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(d) | an order under paragraph 6 of Schedule 6 (conduct of FMI |
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(4) | A statutory instrument to which this subsection applies may not be made |
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unless a draft of the instrument has been laid before, and approved by a |
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resolution of, each House of Parliament. |
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(5) | In subsection (3)(c) “primary legislation” means— |
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(a) | an Act of Parliament, |
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(b) | an Act of the Scottish Parliament, |
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(c) | a Measure or Act of the National Assembly for Wales, or |
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(d) | Northern Ireland legislation. |
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(a) | an enactment contained in subordinate legislation, |
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(b) | an enactment contained in, or in an instrument made under, an |
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Act of the Scottish Parliament, |
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(c) | an enactment contained in, or in an instrument made under, a |
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Measure or Act of the National Assembly for Wales, and |
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|
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(d) | an enactment contained in, or in an instrument made under, |
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Northern Ireland legislation; |
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“the FCA” means the Financial Conduct Authority; |
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“FSMA 2000” means the Financial Services and Markets Act 2000; |
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“the PRA” means the Prudential Regulation Authority. |
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124 | Power to make further consequential amendments |
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(1) | The Treasury may by order make such provision amending, repealing, |
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revoking or applying with modifications any enactment to which this section |
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applies as they consider necessary or expedient in consequence of any |
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provision made by or under this Act. |
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(2) | This section applies to— |
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(a) | any enactment passed or made before the passing of this Act, and |
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(b) | any enactment passed or made on or before the last day of the Session |
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in which this Act is passed. |
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(3) | Amendments and repeals made under this section are additional to those |
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made by or under any other provision of this Act. |
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125 | Transitional provisions and savings |
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(1) | The Treasury may by order make such provision as they consider necessary or |
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expedient for transitory, transitional or saving purposes in connection with the |
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commencement of any provision made by or under this Act. |
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(2) | An order under this section may— |
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(a) | confer functions on the FCA or the PRA; |
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(b) | modify, exclude or apply (with or without modifications) any |
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enactment (including any provision of, or made under, this Act). |
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The provisions of this Act extend to England and Wales, Scotland and |
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Northern Ireland, except that the amendments made by section 9 (preferential |
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debts: Great Britain) have the same extent as the enactments amended. |
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127 | Commencement and short title |
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(1) | This Part comes into force on the day on which this Act is passed. |
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(2) | Section 120 and Schedule 9, apart from paragraph 4 of that Schedule, come into |
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force at the end of the period of 2 months beginning with the day on which this |
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(3) | The remaining provisions of this Act come into force on such day as the |
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Treasury may by order appoint. |
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(4) | Different days may be appointed for different purposes. |
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(5) | This Act may be cited as the Financial Services (Banking Reform) Act 2013. |
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Ring-fencing transfer schemes |
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1 | Part 7 of FSMA 2000 (control of business transfer schemes) is amended as |
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2 | For “the authorised person concerned”, wherever occurring in Part 7 |
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(including Schedule 12), substitute “the transferor concerned”. |
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3 (1) | Section 103A (meaning of “the appropriate regulator”) is amended as |
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(2) | In subsection (1), in paragraph (a), for “a scheme” substitute “a ring-fencing |
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transfer scheme or a scheme (other than a ring-fencing transfer scheme)”. |
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(3) | At the end of subsection (2) insert— |
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“(d) | in the case of a ring-fencing transfer scheme, means the body |
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to whose business the scheme relates.” |
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4 | In section 106 (banking business transfer schemes), at the end of subsection |
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(1)(c) insert “or a ring-fencing transfer scheme”. |
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5 | After section 106A insert— |
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“106B | Ring-fencing transfer scheme |
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(1) | A scheme is a ring-fencing transfer scheme if it— |
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(a) | is one under which the whole or part of the business carried |
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(i) | by a UK authorised person, or |
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(ii) | by a qualifying body, |
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| is to be transferred to another body (“the transferee”), |
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(b) | is to be made for one or more of the purposes mentioned in |
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(c) | is not an excluded scheme or an insurance business transfer |
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(2) | “Qualifying body” means a body which— |
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(a) | is incorporated in the United Kingdom, |
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(b) | is a member of the group of a UK authorised person, and |
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(c) | is not itself an authorised person. |
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(a) | enabling a UK authorised person to carry on core activities as |
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a ring-fenced body in compliance with the ring-fencing |
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(b) | enabling the transferee to carry on core activities as a ring- |
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fenced body in compliance with the ring-fencing provisions; |
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(c) | making provision in connection with the implementation of |
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proposals that would involve a body corporate whose group |
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includes the body corporate to whose business the scheme |
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relates becoming a ring-fenced body while one or more other |
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members of its group are not ring-fenced bodies; |
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(d) | making provision in connection with the implementation of |
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proposals that would involve a body corporate whose group |
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includes the transferee becoming a ring-fenced body while |
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one or more other members of the transferee’s group are not |
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(4) | A scheme is an excluded scheme for the purposes of this section if— |
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(a) | the body to whose business the scheme relates is a building |
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society or credit union, or |
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(b) | the scheme is a compromise or arrangement to which Part 27 |
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of the Companies Act 2006 (mergers and divisions of public |
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(5) | For the purposes of subsection (1)(a) it is immaterial whether or not |
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the business to be transferred is carried on in the United Kingdom. |
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(6) | “UK authorised person” has the same meaning as in section 105. |
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(7) | “Building society” and “credit union” have the same meanings as in |
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(8) | “The ring-fencing provisions” means ring-fencing rules and the duty |
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imposed as a result of section 142G.” |
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6 (1) | Section 107 (application for order sanctioning transfer scheme) is amended |
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(2) | In subsection (1), for “or a reclaim fund business transfer scheme” substitute |
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“, a reclaim fund business transfer scheme or a ring-fencing transfer |
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(3) | After subsection (2) insert— |
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“(2A) | An application relating to a ring-fencing transfer scheme may be |
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made only with the consent of the PRA. |
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(2B) | In deciding whether to give consent, the PRA must have regard to |
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the scheme report prepared under section 109A in relation to the |
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ring-fencing transfer scheme.” |
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7 | For the heading to section 109 substitute “Scheme reports: insurance |
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business transfer schemes”. |
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8 | After section 109 insert— |
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“109A | Scheme reports: ring-fencing transfer schemes |
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(1) | An application under section 106B in respect of a ring-fencing |
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transfer scheme must be accompanied by a report on the terms of the |
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scheme (a “scheme report”). |
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(2) | A scheme report may be made only by a person— |
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(a) | appearing to the PRA to have the skills necessary to enable |
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the person to make a proper report, and |
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(b) | nominated or approved for the purpose by the PRA. |
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(3) | A scheme report must be made in a form approved by the PRA. |
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(4) | A scheme report must state— |
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(a) | whether persons other than the transferor concerned are |
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likely to be adversely affected by the scheme, and |
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(b) | if so, whether the adverse effect is likely to be greater than is |
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reasonably necessary in order to achieve whichever of the |
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purposes mentioned in section 106B(3) is relevant. |
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(5) | The PRA must consult the FCA before— |
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(a) | nominating or approving a person under subsection (2)(b), or |
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(b) | approving a form under subsection (3).” |
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9 (1) | Section 110 (right to participate in proceedings) is amended as follows. |
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(2) | In subsection (1), after “section 107” insert “relating to an insurance business |
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transfer scheme, a banking business transfer scheme or a reclaim fund |
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business transfer scheme”. |
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(3) | After subsection (2) insert— |
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“(3) | Subsections (4) and (5) apply where an application under section 107 |
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relates to a ring-fencing transfer scheme. |
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(4) | The following are also entitled to be heard— |
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(b) | where the transferee is an authorised person, the FCA, and |
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(c) | any person (“P”) (including an employee of the transferor |
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concerned or of the transferee) who alleges that P would be |
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adversely affected by the carrying out of the scheme. |
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(5) | P is not entitled to be heard by virtue of subsection (4)(c) unless |
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before the hearing P has— |
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(a) | filed (in Scotland, lodged) with the court a written statement |
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of the representations that P wishes the court to consider, and |
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(b) | served copies of the statement on the PRA and the transferor |
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10 (1) | Section 111 (sanction of court for business transfer schemes) is amended as |
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(2) | In subsection (1), for “or a reclaim fund business transfer scheme” substitute |
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“, a reclaim fund business transfer scheme or a ring-fencing transfer |
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(3) | In subsection (2), after paragraph (aa) insert— |
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“(ab) | in the case of a ring-fencing transfer scheme, the appropriate |
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certificates have been obtained (as to which see Part 2B of that |
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11 | In section 112 (effect of order sanctioning business transfer scheme), in |
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subsection (10), after “transfer scheme” insert “or ring-fencing transfer |
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|
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12 | In section 112A (rights to terminate etc.), in subsection (1), for “or a banking |
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business transfer scheme” substitute “, a banking business transfer scheme |
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or a ring-fencing transfer scheme”. |
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13 | In Schedule 12 (transfer schemes: certificates) after Part 2A insert— |
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Ring-fencing transfer schemes |
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9B (1) | For the purposes of section 111(2) the appropriate certificates, in |
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relation to a ring-fencing transfer scheme, are— |
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(a) | a certificate given by the PRA certifying its approval of the |
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(b) | a certificate under paragraph 9C, and |
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(c) | if sub-paragraph (2) applies, a certificate under paragraph |
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(2) | This sub-paragraph applies if the transferee is an EEA firm falling |
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within paragraph 5(a) or (b) of Schedule 3. |
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Certificate as to financial resources |
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9C (1) | A certificate under this paragraph is one given by the relevant |
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authority and certifying that, taking the proposed transfer into |
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account, the transferee possesses, or will possess before the |
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scheme takes effect, adequate financial resources. |
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(2) | “Relevant authority” means— |
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(a) | if the transferee is a PRA-authorised person with a Part 4A |
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permission or with permission under Schedule 4, the PRA; |
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(b) | if the transferee is an EEA firm falling within paragraph |
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5(a) or (b) of Schedule 3, its home state regulator; |
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(c) | if the transferee does not fall within paragraph (a) or (b) |
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but is subject to regulation in a country or territory outside |
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the United Kingdom, the authority responsible for the |
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supervision of the transferee’s business in the place in |
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which the transferee has its head office; |
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(d) | in any other case, the FCA. |
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(3) | In sub-paragraph (2), any reference to a transferee of a particular |
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description includes a reference to a transferee who will be of that |
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description if the proposed ring-fencing transfer scheme takes |
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Certificate as to consent of home state regulator |
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9D | A certificate under this paragraph is one given by the appropriate |
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regulator and certifying that the home state regulator of the |
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transferee has been notified of the proposed scheme and that— |
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(a) | the home state regulator has responded to the notification, |
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|
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(b) | the period of 3 months beginning with the notification has |
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Bail-in stabilisation option |
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Amendments of Banking Act 2009 |
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1 | The Banking Act 2009 is amended as follows. |
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New stabilisation option: bail-in |
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2 | After section 12 insert— |
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(1) | The third stabilisation option is exercised by the use of the power in |
| |
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(2) | The Bank of England may make one or more resolution instruments |
| |
(which may contain provision or proposals of any kind mentioned in |
| |
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(3) | A resolution instrument may— |
| |
(a) | make special bail-in provision with respect to a specified |
| |
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(b) | make other provision for the purposes of, or in connection |
| |
with, any special bail-in provision made by that or another |
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(4) | A resolution instrument may— |
| |
(a) | provide for securities issued by a specified bank to be |
| |
transferred to a bail-in administrator (see section 12B) or |
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(b) | make other provision for the purposes of, or in connection |
| |
with, the transfer of securities issued by a specified bank |
| |
(whether or not the transfer has been or is to be effected by |
| |
that instrument, by another resolution instrument or |
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(5) | A resolution instrument may set out proposals with regard to the |
| |
future ownership of a specified bank or of the business of a specified |
| |
bank, and any other proposals (for example, proposals about making |
| |
special bail-in provision) that the Bank of England may think |
| |
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(6) | A resolution instrument may make any other provision the Bank of |
| |
England may think it appropriate to make in exercise of specific |
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(7) | Provision made in accordance with subsection (4) may relate to— |
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(a) | specified securities, or |
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|
