Banking (Special Provisions) Bill

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Session 2007 - 08
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Banking (Special Provisions) Bill

Banking (Special Provisions) Bill
Schedule 1 — Transfer orders under section 3
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Schedules
Schedule 1
Section 3

Transfer orders under section 3
Provisions relating to securities transferred: general
1     (1)
An order under section 3 may make provision—
5
(a)
for securities to be transferred free from all trusts, liabilities and
incumbrances;
(b)
for any transfer of securities to take effect despite—
(i)
the absence of any required consent or concurrence to or with
the transfer,
10
(ii)
any other restriction relating to the transfer of the securities,
or
(iii)
the absence of the delivery of any instrument representing
securities transferable by delivery (a “bearer instrument”);
(c)
for the delivery of any such instruments to a specified person, and
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the issue to the transferee of instruments representing such
securities;
(d)
for the transferee to be entitled to be entered in any register of
securities without the need for delivery of any instrument of transfer;
(e)
for requiring the person maintaining any such register to register the
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transferee in the register;
(f)
for the transferee to be, as from the transfer date, entitled, or subject,
to rights, privileges, advantages and liabilities arising from or
relating to transferred securities, whether or not the transferee has
been so registered or any bearer instrument representing the
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transferred securities has been delivered to the transferee;
(g)
for deeming the transferee for any specified purposes to be the
holder of the transferred securities at a time when the transferee has
yet to be so registered or any such instrument has yet to be so
delivered;
30
(h)
for securing that rights of holders of securities, and rights relating to
securities that are held by persons other than—
(i)
the holders of the securities, or
(ii)
the transferee,

cease to be exercisable by the holders of the securities or (as the case
35
may be) such other persons;
(i)
for requiring distributions or other relevant amounts payable by the
relevant deposit-taker on or after the transfer date to be paid into the
Consolidated Fund.
      (2)
Sub-paragraph (1)(h) applies to—
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Banking (Special Provisions) Bill
Schedule 1 — Transfer orders under section 3
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(a)
securities issued by the relevant deposit-taker (whether or not
transferred by an order under section 3), or
(b)
securities issued by any of its group undertakings;

and, in relation to any transferred securities, any references in that provision
to holders of securities are to former holders of them.
5
Conversion of form in which securities held etc.
2     (1)
An order under section 3 may make provision—
(a)
for securities held in one form to be converted, in the specified
manner, from that form into another specified form;
(b)
for converting a specified class of securities into securities of another
10
specified class;
(c)
for matters consequential on any such conversion as is mentioned in
paragraph (a) or (b).
      (2)
Sub-paragraph (1) applies to securities issued by the relevant deposit-taker,
whether or not transferred by an order under section 3.
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Delisting of securities
3     (1)
An order under section 3 may make provision for discontinuing the listing
of securities issued by the relevant deposit-taker (whether or not the
securities have been transferred by such an order).
      (2)
In this paragraph “listing” has the meaning given by section 74(5) of FSMA
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2000.
Alteration of terms of securities or contracts etc.
4     (1)
An order under section 3 may make provision for varying or nullifying the
terms, or the effect of terms, of—
(a)
securities issued by the relevant deposit-taker (whether or not
25
transferred by such an order),
(b)
securities issued by any of its group undertakings, or
(c)
other relevant instruments.
      (2)
The provision that may be made by virtue of sub-paragraph (1) includes
provision—
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(a)
for securing that transactions or events of any specified description
have or do not have (directly or indirectly) such consequences as are
specified, or are to be treated in the specified manner for any
specified purposes;
(b)
for discharging persons from further performance of obligations
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under relevant instruments, and for dealing with the consequences
of persons being so discharged.
      (3)
In this paragraph “relevant instrument” means any agreement, licence or
other instrument to or by which any of the following is a party or bound—
(a)
the relevant deposit-taker,
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(b)
any of its group undertakings, or
(c)
any person having a specified connection with the relevant deposit-
taker or any of its group undertakings (whether framed by reference
to a sale of assets by one to the other, or otherwise).

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Schedule 1 — Transfer orders under section 3
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Creation of new rights etc.
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An order under section 3 may make provision for the creation of new rights
and liabilities as between the relevant deposit-taker and any of its group
undertakings.
Rights etc. under pension schemes
5
6     (1)
An order under section 3 may make provision—
(a)
as to the consequences of any transfer, by such an order, in relation
to any pension scheme;
(b)
in relation to any property, rights and liabilities of any relevant
occupational pension scheme.
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      (2)
Such an order may—
(a)
modify any such rights and liabilities;
(b)
apportion any such rights and liabilities between different persons;
(c)
provide for property of, or accrued rights in, any relevant
occupational pension scheme to be transferred to another
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occupational pension scheme without the consent of any person.
      (3)
Provision made in pursuance of this paragraph may be made by means of
modifications of a relevant occupational pension scheme or otherwise.
      (4)
In this paragraph—
“occupational pension scheme” has the meaning given by section
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150(5) of the Finance Act 2004 (c. 12);
“relevant occupational pension scheme” means an occupational
pension scheme in relation to which—
(a)
the relevant deposit-taker, or
(b)
any of its group undertakings,
25
is or has been an employer.
Provisions relating to directors of relevant deposit-taker etc.
7     (1)
An order under section 3 may make provision enabling the Treasury—
(a)
to remove or appoint directors of the relevant deposit-taker or any of
its group undertakings;
30
(b)
to determine, by agreement with persons so appointed by the
Treasury, their remuneration and the other terms and conditions of
their service contracts;
(c)
to terminate, or vary the terms and conditions of, the service
contracts of persons who (however appointed) are directors of the
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relevant deposit-taker or any of its group undertakings.
      (2)
An order under section 3 may provide for anything done by the Treasury in
accordance with provision made by virtue of sub-paragraph (1) to be treated
as done by the relevant deposit-taker.
      (3)
In this paragraph “service contract” has the meaning given by section 227 of
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the Companies Act 2006 (c. 46).
Supplementary provisions
8     (1)
An order under section 3 may make provision—

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Schedule 2 — Transfer orders under section 6
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(a)
for agreements made or other things done by or in relation to former
holders of transferred securities to be treated as made or done by or
in relation to the transferee;
(b)
for references to such persons in instruments or documents to have
effect with specified modifications;
5
(c)
for anything that relates to anything transferred by an order under
section 3, and is in the process of being done by or in relation to any
such person immediately before it is transferred, to be continued by
or in relation to the transferee.
      (2)
An order under section 3 may require former holders of transferred
10
securities to provide the transferee with such information and other
assistance as is specified.
      (3)
An order under section 3 may make provision for disputes as to specified
matters arising under or by virtue of an order under that section to be
determined in the specified manner.
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Interpretation
9     (1)
In this Schedule—
“distributions or other relevant amounts” includes dividends,
payments of interest, principal or capital, premiums and other
payments arising in connection with securities transferred by an
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order under section 3;
“former holder”, in relation to transferred securities, means a person
holding the securities before the transfer date;
“the relevant deposit-taker”, in relation to an order under section 3,
means the authorised UK deposit-taker in relation to which the order
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is made;
“remuneration” includes any benefit in kind;
“register of securities” means a register of members or any other
register of the holders of securities;
“specified purposes” include the purposes of any specified statutory
30
provision;
“the transferee” means the person to whom securities are transferred by
an order under section 3;
“the transfer date” means (subject to sub-paragraph (2)) the date on
which such a transfer takes place.
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      (2)
If an order under section 3 provides for any transfer to take place at a
particular time on a particular date, then in relation to that transfer,
references to the transfer date are to that time on that date.
Schedule 2
Section 6

Transfer orders under section 6
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Property, rights and liabilities that may be transferred by or under order
1
The property, rights and liabilities that may be transferred by or under an
order under section 6 include—

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Schedule 2 — Transfer orders under section 6
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(a)
property, rights and liabilities that would not be capable of being
assigned or otherwise transferred by the relevant deposit-taker;
(b)
property, rights and liabilities acquired or incurred in the period
between the making of the order and the transfer date;
(c)
rights and liabilities arising on or after the transfer date in respect of
5
matters occurring before that date;
(d)
rights and liabilities under any pension scheme or under any other
arrangement for the payment of pensions, allowances and gratuities;
(e)
property situated outside the United Kingdom and rights and
liabilities under the law of a place outside the United Kingdom;
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(f)
rights and liabilities under an enactment or Community instrument.
Provisions relating to property, rights and liabilities transferred
2     (1)
An order under section 6 may make provision—
(a)
for any transfer of any interests or rights to take effect despite the
absence of any required consent or concurrence to or with the
15
transfer;
(b)
for any transfer of any interests or rights to take effect as if—
(i)
no associated liability existed in respect of any failure to
comply with any other requirement, and
(ii)
there were no associated interference with the interests or
20
rights;
(c)
for securing that in any specified circumstances—
(i)
a person is not entitled to terminate, modify, acquire or claim
an interest or right (or to treat an interest or right as
terminated or modified) until it is transferred by or under the
25
order, and
(ii)
the entitlement is subsequently either not enforceable or
enforceable only to the specified extent;
(d)
for rights and liabilities—
(i)
to be transferred so as to be enforceable by or against both the
30
transferee and the transferor, and
(ii)
where they are so enforceable, to be enforceable in different
or modified respects by or against each of those persons;
(e)
for interests, rights or liabilities of third parties in relation to
anything to which an order under section 6 relates to be modified in
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the specified manner, including provision—
(i)
for securing that transactions or events of any specified
description do or do not have (directly or indirectly) such
consequences as are specified, or are to be treated in the
specified manner for any specified purposes;
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(ii)
for persons to be discharged from the further performance of
contracts and for dealing with the consequences of persons
being so discharged;
(f)
for the manner in which—
(i)
any property held in trust by the relevant deposit-taker
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before the transfer date (whether as sole or joint trustee) is to
be held on or after that date, and
(ii)
any powers, provisions and liabilities relating to any such
property are to be exercisable or to have effect on or after that
date;
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(g)
for excluding from the transfer specified property, rights and
liabilities comprised in the relevant deposit-taker’s business or a
specified part of it;
(h)
for the creation of rights, liabilities or interests in relation to property,
rights or liabilities transferred from or retained by the relevant
5
deposit-taker;
(i)
for dealing with cases where securities of a subsidiary undertaking
are transferred by or under the order;
(j)
for enabling the relevant deposit-taker and the transferee (in
accordance with the order) to agree on any modification of the order,
10
so long as the order could originally have been made with that
modification in accordance with the relevant provisions of this Act;
(k)
for apportioning liabilities in respect of any tax or duty (in the United
Kingdom or elsewhere) between the relevant deposit-taker and the
transferee.
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      (2)
In sub-paragraph (1)(b) “associated liability” and “associated interference”
mean respectively any liability or interference that would otherwise exist by
virtue of any provision (of an enactment or agreement or otherwise) having
effect in relation to the terms on which the relevant deposit-taker is entitled,
or subject, to anything to which the transfer relates.
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      (3)
In sub-paragraph (1)(e) “third parties” means persons other than the
relevant deposit-taker or the transferee under an order under section 6.
Creation of new rights etc.
3
An order under section 6 may make provision for the creation of new rights
and liabilities as between the relevant deposit-taker and any of its group
25
undertakings.
Rights etc. under pension schemes
4     (1)
An order under section 6 may make provision—
(a)
as to the consequences of any transfer, by or under such an order, in
relation to any pension scheme;
30
(b)
in relation to any property, rights and liabilities of any relevant
occupational pension scheme.
      (2)
Such an order may—
(a)
modify any such rights and liabilities;
(b)
apportion any such rights and liabilities between different persons;
35
(c)
provide for property of, or accrued rights in, any relevant
occupational pension scheme to be transferred to another
occupational pension scheme without the consent of any person.
      (3)
Provision made in pursuance of this paragraph may be made by means of
modifications of a relevant occupational pension scheme or otherwise.
40
      (4)
In this paragraph—
“occupational pension scheme” has the meaning given by section
150(5) of the Finance Act 2004 (c. 12);
“relevant occupational pension scheme” means an occupational
pension scheme in relation to which—
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(a)
the relevant deposit-taker, or

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Schedule 2 — Transfer orders under section 6
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(b)
any of its group undertakings,
is or has been an employer.
Foreign property etc.
5     (1)
An order under section 6 may make provision—
(a)
for requiring or authorising the relevant deposit-taker or the
5
transferee to take any specified steps—
(i)
for securing the vesting in the transferee under the relevant
foreign law of foreign property or foreign rights or liabilities,
or
(ii)
pending any such vesting of such property, rights or
10
liabilities, or
(iii)
otherwise in relation to such property, rights or liabilities;
(b)
for the payment by a specified person of expenses incurred in
connection with such property, rights or liabilities.
      (2)
In this paragraph—
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(a)
“foreign law” means the law of a place outside the United Kingdom;
and
(b)
“foreign property” and “foreign rights or liabilities” mean
respectively property and rights and liabilities as respects which an
issue arising in any proceedings would be determined (in
20
accordance with the rules of private international law) by reference
to foreign law.
Authorisations and permissions etc.
6     (1)
An order under section 6 may make provision for securing that, if on the
transfer date the transferee satisfies the specified conditions, it is to be
25
treated for the specified period—
(a)
as an authorised person in relation to any specified regulated
activities carried on by the relevant deposit-taker before that date, or
(b)
as an authorised person who has a Part IV permission granted by the
Financial Services Authority to carry on any such activities.
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      (2)
Where an order makes provision in accordance with sub-paragraph (1)(b), it
may provide that any decision by the Financial Services Authority of a
specified description is to have the effect of varying or cancelling (to any
specified extent) the Part IV permission which the transferee is to be treated
as having by virtue of that provision.
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      (3)
An order under section 6 may make provision—
(a)
for securing that licences, permissions or approvals—
(i)
relating to anything transferred by or under the order, and
(ii)
in force or effective immediately before the transfer date,

are to continue in force or in effect as from that date;
40
(b)
for apportioning (by means of making modifications of the
instruments concerned or otherwise) responsibility between the
relevant deposit-taker and the transferee as regards compliance with
requirements of licences, permissions or approvals.
      (4)
In this paragraph “authorised person”, “Part IV permission” and “regulated
45
activities” have the same meanings as in FSMA 2000.