|
| |
| |
| |
| |
(1) | This Part provides three methods of protecting the financial interests of |
| |
transferors and others in connection with share transfer instruments and |
| |
orders and property transfer instruments. |
| 5 |
(2) | A “compensation scheme order” is an order establishing a scheme for— |
| |
(a) | determining whether transferors should be paid compensation, and |
| |
(b) | paying any compensation. |
| |
(3) | A “resolution fund order” is an order establishing a scheme under which |
| |
transferors become entitled to the proceeds of the disposal of things |
| 10 |
| |
(a) | in specified circumstances, and |
| |
(b) | to a specified extent. |
| |
(4) | A “third party compensation order” is provision made in accordance with |
| |
section 54 for compensation to be paid to persons other than transferors. |
| 15 |
45 | Sale to private sector purchaser |
| |
(1) | This section applies if the Bank of England makes a share transfer instrument |
| |
or a property transfer instrument in accordance with section 10(2). |
| |
(2) | The Treasury shall make a compensation scheme order. |
| |
(3) | An order made by virtue of subsection (2) may include a third party |
| 20 |
| |
(4) | In the case of a partial property transfer, an order made by virtue of subsection |
| |
(2) must include a third party compensation order. |
| |
46 | Transfer to bridge bank |
| |
(1) | This section applies if the Bank of England makes a property transfer |
| 25 |
instrument in accordance with section 11(2). |
| |
(2) | The Treasury shall make a resolution fund order. |
| |
(3) | An order made by virtue of subsection (2) may include— |
| |
(a) | a compensation scheme order; |
| |
(b) | a third party compensation order (which may, in particular, make |
| 30 |
provision, in respect of specified classes of creditor, for rights in |
| |
addition to any rights they may have by virtue of the resolution fund |
| |
| |
(4) | In the case of a partial property transfer, the resolution fund order must |
| |
include a third party compensation order. |
| 35 |
47 | Transfer to temporary public ownership |
| |
(1) | This section applies if the Treasury make a share transfer order in accordance |
| |
| |
(2) | The Treasury shall make either— |
| |
| |
| |
|
| |
| |
(a) | a compensation scheme order, or |
| |
(b) | a resolution fund order. |
| |
(3) | A resolution fund order made by virtue of subsection (2)(b) may include— |
| |
(a) | a compensation scheme order; |
| |
(b) | a third party compensation order (which may, in particular, make |
| 5 |
provision, in respect of specified classes of creditor, for rights in |
| |
addition to any rights they may have by virtue of the resolution fund |
| |
| |
(4) | A compensation scheme order made by virtue of subsection (2) may include a |
| |
third party compensation order. |
| 10 |
| |
(1) | This section applies where— |
| |
(a) | the Treasury make an onward share transfer order under section 27, |
| |
(b) | the Bank of England makes a bridge bank share transfer instrument |
| |
| 15 |
(c) | the Bank of England makes an onward property transfer instrument |
| |
| |
(d) | the Treasury makes a property transfer order under section 41. |
| |
(2) | The Treasury may make— |
| |
(a) | a compensation scheme order; |
| 20 |
(b) | a third party compensation order. |
| |
| |
(1) | A compensation scheme order must provide for the amount of any |
| |
compensation payable to be determined by a person appointed in accordance |
| |
with the order (the “independent valuer”). |
| 25 |
(2) | An order must provide for the independent valuer to be appointed by a person |
| |
appointed by the Treasury (“the appointing person”). |
| |
| |
(a) | require the Treasury to make arrangements to identify a number of |
| |
possible independent valuers, one of whom is to be selected by the |
| 30 |
| |
(b) | require the appointing person to make arrangements to select the |
| |
independent valuer, having regard to any criteria specified in the order. |
| |
(4) | The independent valuer may be removed only— |
| |
(a) | on the grounds of incapacity or serious misconduct, and |
| 35 |
(b) | by a person specified by the Treasury in accordance with the |
| |
compensation scheme order. |
| |
(5) | An order must include provision for resignation and replacement of the |
| |
independent valuer (and subsections (2) and (3) apply to replacement as to the |
| |
| 40 |
| |
| |
|
| |
| |
50 | Independent valuer: supplemental |
| |
(1) | An independent valuer may do anything necessary or desirable for the |
| |
purposes of or in connection with the performance of the functions of the |
| |
| |
(2) | The Treasury may by order confer specific functions on independent valuers; |
| 5 |
in particular, the order may— |
| |
(a) | enable an independent valuer to apply to a court or tribunal for an |
| |
order requiring the provision of information or the giving of oral or |
| |
| |
(b) | enable or require independent valuers to publish, disclose or withhold |
| 10 |
| |
(3) | Provision under subsection (2) may— |
| |
(a) | confer a discretion on independent valuers; |
| |
(b) | confer jurisdiction on a court or tribunal; |
| |
(c) | make provision about oaths, expenses and other procedural matters |
| 15 |
relating to the giving of evidence or the provision of information; |
| |
(d) | create a criminal offence; |
| |
(e) | make other provision about enforcement. |
| |
(4) | An independent valuer may appoint staff. |
| |
(5) | The Treasury may by order make provision about the procedure to be followed |
| 20 |
| |
(6) | The Treasury shall by order make provision for— |
| |
(a) | reconsideration of a decision of an independent valuer, and |
| |
(b) | appeal to a court or tribunal against a decision of an independent |
| |
| 25 |
(7) | Independent valuers (and their staff) are neither servants nor agents of the |
| |
Crown (and, in particular, are not civil servants). |
| |
(8) | Records of an independent valuer are public records for the purposes of the |
| |
| |
(9) | An order under this section— |
| 30 |
(a) | shall be made by statutory instrument, and |
| |
(b) | shall be subject to annulment in pursuance of a resolution of either |
| |
| |
51 | Independent valuer: money |
| |
(1) | The Treasury may by order provide for the payment by the Treasury of remuneration |
| 35 |
| |
| |
(b) | staff of independent valuers, and |
| |
| |
| 40 |
(a) | must provide for the appointment by the Treasury of a person to |
| |
monitor the operation of the arrangements for remuneration and |
| |
allowances for independent valuers; |
| |
| |
| |
|
| |
| |
(b) | may require, or enable a compensation scheme order or third party |
| |
compensation order to require, the monitor’s approval before specified |
| |
things may be done in the course of those arrangements; |
| |
(c) | may include provision about records and accounts; |
| |
(d) | may make provision about numbers of staff and the terms and |
| 5 |
conditions of their appointment (which may include provision |
| |
requiring the approval of the Treasury or the monitor). |
| |
(3) | In subsection (1) a reference to the payment of allowances to a person includes |
| |
a reference to the payment to or in respect of the person of sums by way of or |
| |
| 10 |
(4) | Independent valuers (and their staff) are not liable for damages in respect of |
| |
anything done in good faith for the purposes of or in connection with the |
| |
functions of the office (subject to section 8 of the Human Rights Act 1998). |
| |
(5) | An order under this section— |
| |
(a) | shall be made by statutory instrument, and |
| 15 |
(b) | shall be subject to annulment in pursuance of a resolution of either |
| |
| |
| |
(1) | A compensation scheme order may specify principles (“valuation principles”) |
| |
to be applied in determining the amount of compensation. |
| 20 |
(2) | Valuation principles may, in particular, require an independent valuer— |
| |
(a) | to apply, or not to apply, specified methods of valuation; |
| |
(b) | to assess values or average values at specified dates or over specified |
| |
| |
(c) | to take specified matters into account in a specified manner; |
| 25 |
(d) | not to take specified matters into account. |
| |
(3) | In determining an amount of compensation (whether or not in accordance with |
| |
valuation principles) an independent valuer must disregard actual or potential |
| |
financial assistance provided by the Bank of England or the Treasury |
| |
(disregarding ordinary market assistance offered by the Bank on its usual |
| 30 |
| |
(4) | Valuation principles may require or permit an independent valuer to make |
| |
assumptions; such as, for example, that the bank— |
| |
(a) | has had a permission under Part 4 of the Financial Services and Markets |
| |
Act 2000 (regulated activities) varied or cancelled, |
| 35 |
(b) | is unable to continue as a going concern, |
| |
(c) | is in administration, or |
| |
| |
(5) | There is nothing to prevent the application of the valuation principles in an |
| |
order from resulting in no compensation being payable to a transferor. |
| 40 |
| |
(1) | A resolution fund order must include provision for determining— |
| |
(a) | who will be entitled to a share of the proceeds on disposal of things |
| |
| |
| |
| |
|
| |
| |
(b) | the way in which the proceeds will be calculated, and |
| |
(c) | the way in which shares will be calculated. |
| |
(2) | Provision under subsection (1)(b) may, in particular, provide for proceeds to be |
| |
| |
(a) | amounts required for the repayment of loans from public funds or for |
| 5 |
other payments in respect of public financial assistance; |
| |
(b) | some or all of the administrative or other expenses incurred in |
| |
connection with the provisions of this Part. |
| |
(3) | A resolution fund order may confer a discretionary function on— |
| |
(a) | a Minister of the Crown, |
| 10 |
| |
(c) | the Bank of England, or |
| |
(d) | any other specified person. |
| |
(4) | A resolution fund order may include provision for the determination of |
| |
disputes about the application of its provisions (whether by conferring |
| 15 |
jurisdiction on a court or tribunal or otherwise). |
| |
(5) | A resolution fund order may require the Bank of England in managing a bridge |
| |
bank to aim to maximise the proceeds available for distribution in accordance |
| |
with the order; and an order which includes a requirement must— |
| |
(a) | subserviate it to pursuit of the special resolution objectives and |
| 20 |
compliance with the code of practice under section 5, |
| |
(b) | specify its extent, and |
| |
(c) | include provision about how the Bank is to comply with it. |
| |
(6) | A resolution fund order may require the Treasury to ensure that a bank in |
| |
temporary public ownership in accordance with section 12(2) is managed with |
| 25 |
the aim of maximising the proceeds available for distribution in accordance |
| |
with the order; and an order which includes a requirement must— |
| |
(a) | subserviate it to pursuit of the special resolution objectives and |
| |
compliance with the code of practice under section 5, |
| |
(b) | specify its extent, and |
| 30 |
(c) | include provision about how the Treasury is to comply with it. |
| |
54 | Third party compensation: discretionary provision |
| |
(1) | A power or duty in this Part to make a third party compensation order is a |
| |
power or duty to make provision establishing a scheme for paying |
| |
compensation to persons other than a transferor. |
| 35 |
(2) | A third party compensation order may— |
| |
(a) | form part of a compensation scheme order or resolution fund order, or |
| |
| |
(3) | A third party compensation order may include provision for— |
| |
(a) | an independent valuer (in which case sections 49 and 50 shall apply); |
| 40 |
(b) | valuation principles (in which case section 52(2) to (5) shall apply). |
| |
| |
| |
|
