|
| |
|
| |
(a) | shall 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) | Provision made under or by virtue of this Part may make special provision in |
| 5 |
relation to the application of this Part to building societies. |
| |
| |
(1) | The Treasury may by order provide for this Part to apply to credit unions |
| |
(within the meaning of section 31 of the Credit Unions Act 1979) as it applies |
| |
to banks, subject to modifications set out in the order. |
| 10 |
| |
(a) | amend the Credit Union Act 1979, the Industrial and Providential |
| |
Societies Act 1965 or any other enactment which relates, or in so far as |
| |
it relates, to credit unions; |
| |
(b) | amend an enactment amended by this Part; |
| 15 |
(c) | replicate, with or without modifications, a provision of this Part; |
| |
(d) | apply a provision made under or by virtue of this Part, with or without |
| |
modifications, to this Part as it applies to credit unions. |
| |
| |
(a) | shall be made by statutory instrument, and |
| 20 |
(b) | may not be made unless a draft has been laid before and approved by |
| |
resolution of each House of Parliament. |
| |
(4) | Provision made under or by virtue of this Part may make special provision in |
| |
relation to the application of this Part to credit unions. |
| |
| 25 |
(1) | Section 411 of the Insolvency Act 1986 (company insolvency rules) is amended |
| |
| |
(2) | In subsection (1) after “Part 2 of the Banking Act 2008 (bank insolvency orders)” |
| |
(inserted by section 112 above) insert “, Part 3 of that Act (bank |
| |
| 30 |
(3) | After subsection (2C) (inserted by section 112 above) insert— |
| |
“(2D) | For the purposes of subsection (2), a reference in Schedule 8 to this Act |
| |
to doing anything under or for the purposes of a provision of this Act |
| |
includes a reference to doing anything under or for the purposes of Part |
| |
3 of the Banking Act 2008.” |
| 35 |
| |
(a) | after “bank liquidator” (inserted by section 112 above) insert “or |
| |
| |
(b) | after “Part 2” (inserted by section 112 above) insert “or 3”. |
| |
| 40 |
After section 414(8A) of the Insolvency Act 1986 (fees orders - inserted by |
| |
|
| |
|
| |
|
section 113 above) insert— |
| |
“(8B) | This section applies in relation to Part 3 of the Banking Act 2008 (bank |
| |
administration) as in relation to Parts I to VII of this Act.” |
| |
| |
(1) | The Lord Chancellor may, by order made with the concurrence of the Secretary |
| 5 |
of State and the Lord Chief Justice, modify provisions of this Part in their |
| |
application to partnerships. |
| |
(2) | For procedural purposes an order under subsection (1) shall be treated in the |
| |
same way as an order under section 420 of the Insolvency Act 1986 |
| |
| 10 |
(3) | This section does not apply in relation to partnerships constituted under the |
| |
| |
150 | Scottish partnerships |
| |
(1) | The Secretary of State may by order modify provisions of this Part in their |
| |
application to partnerships constituted under the law of Scotland. |
| 15 |
| |
(a) | shall be made by statutory instrument, and |
| |
(b) | shall be subject to annulment in pursuance of a resolution of either |
| |
| |
151 | Co-operation between courts |
| 20 |
(1) | Provisions of or by virtue of this Part are “insolvency law” for the purposes of |
| |
section 426 of the Insolvency Act 1986 (co-operation between courts). |
| |
(2) | At the end of that section (after the subsection added by section 116) add— |
| |
“(14) | Section 151 of the Banking Act 2008 provides for provisions of that Act |
| |
about bank administration to be “insolvency law” for the purposes of |
| 25 |
| |
152 | Interpretation: general |
| |
(1) | In this Part “the court” means— |
| |
(a) | in England and Wales, the High Court, |
| |
(b) | in Scotland, the Court of Session, and |
| 30 |
(c) | in Northern Ireland, the High Court. |
| |
(2) | In this Part “the FSA” means the Financial Services Authority. |
| |
(3) | For the purposes of a reference in this Part to inability to pay debts— |
| |
(a) | a bank that is in default on an obligation to pay a sum due and payable |
| |
under an agreement, is to be treated as unable to pay its debts, and |
| 35 |
(b) | section 123 of the Insolvency Act 1986 (inability to pay debts) also |
| |
| |
| for the purposes of paragraph (a) “agreement” means an agreement the |
| |
making or performance of which constitutes or is part of a regulated activity |
| |
| 40 |
|
| |
|
| |
|
(4) | Expressions used in this Part and in the Insolvency Act 1986 have the same |
| |
| |
(5) | Expressions used in this Part and in the Companies Act 2006 have the same |
| |
| |
(6) | A reference in this Part to action includes a reference to inaction. |
| 5 |
| |
In the application of this Part to Northern Ireland— |
| |
(a) | a reference to an enactment is to be treated as a reference to the |
| |
equivalent enactment having effect in relation to Northern Ireland, |
| |
(b) | where this Part amends an enactment an equivalent amendment |
| 10 |
(incorporating any necessary modification) is made to the equivalent |
| |
enactment having effect in relation to Northern Ireland, |
| |
(c) | the reference in section 146 to section 31 of the Credit Unions Act 1979 |
| |
is to be treated as a reference to Article 2 of the Credit Unions (Northern |
| |
| 15 |
| |
(i) | the reference to the Secretary of State is to be treated as a |
| |
reference to the Department for Enterprise, Trade and |
| |
| |
(ii) | the reference to the Lord Chief Justice is a reference to the Lord |
| 20 |
Chief Justice in Northern Ireland. |
| |
154 | Consequential provision |
| |
(1) | The Treasury may by order make provision in consequence of this Part. |
| |
(2) | An order may, in particular, amend or modify the effect of an enactment |
| |
(including a fiscal enactment and an Act of the Scottish Parliament) passed |
| 25 |
before the commencement of this Part. |
| |
| |
(a) | shall 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. |
| 30 |
| |
Financial Services Compensation Scheme |
| |
| |
This Part makes a number of amendments in connection with the Financial |
| |
Services Compensation Scheme provided for by Part 15 of the Financial |
| 35 |
Services and Markets Act 2000. |
| |
| |
(1) | After section 214 of the Financial Services and Markets Act 2000 (compensation |
| |
|
| |
|
| |
|
| |
“214A | Contingency funding |
| |
(1) | The Treasury may make regulations (“contingency fund regulations”) |
| |
permitting the scheme manager to impose levies under section 213 for |
| |
the purpose of maintaining contingency funds from which possible |
| 5 |
| |
(2) | Contingency fund regulations may make provision about the |
| |
establishment and management of contingency funds; in particular, the |
| |
regulations may make provision about— |
| |
(a) | the number and size of funds; |
| 10 |
(b) | the circumstances and timing of their establishment; |
| |
(c) | the classes of person from whom contributions to the funds may |
| |
| |
(d) | the amount and timing of payments into and out of funds |
| |
(which may include provision for different levies for different |
| 15 |
| |
| |
(f) | the ways in which funds’ contents may be invested (including |
| |
(i) the extent of reliance on section 223A, and (ii) the application |
| |
| 20 |
(g) | the purposes for which funds may be applied, but only so as to |
| |
determine whether a fund is to be used (i) for the payment of |
| |
compensation, (ii) for the purposes of co-operating with a bank |
| |
liquidator in accordance with section 86 of the Banking Act |
| |
2008, or (iii) for contributions under section 214B; |
| 25 |
(h) | procedures to be followed in connection with funds, including |
| |
the keeping of records and the provision of information. |
| |
(3) | The compensation scheme may include provision about contingency |
| |
funds provided that it is not inconsistent with contingency fund |
| |
| 30 |
(2) | At the end of section 213(7) (compensation scheme: further provision) add |
| |
“(except where limitations are expressly stated)”. |
| |
(3) | In section 218 (compensation scheme: annual report)— |
| |
(a) | in subsection (1) after “to the Authority” insert “and the Treasury”, and |
| |
(b) | at the end of subsection (2)(b) add “or in contingency fund regulations.” |
| 35 |
157 | Special resolution regime |
| |
After section 214A of the Financial Services and Markets Act 2000 (contingency |
| |
funding - inserted by section 156 above) insert— |
| |
“214B | Contribution to costs of special resolution regime |
| |
(1) | This section applies where— |
| 40 |
(a) | a stabilisation power under Part 1 of the Banking Act 2008 has |
| |
been exercised in respect of a bank (within the meaning of that |
| |
| |
(b) | the Treasury think that the bank was, or but for the exercise of |
| |
the stabilisation power would have become, unable to satisfy |
| 45 |
| |
|
| |
|
| |
|
(2) | Where this section applies— |
| |
(a) | the Treasury may require the scheme manager to contribute |
| |
towards expenses connected with the exercise of the |
| |
| |
(b) | contributions shall be treated as expenditure under the scheme |
| 5 |
for all purposes (including levies, contingency funds and |
| |
| |
(3) | The Treasury shall make regulations— |
| |
(a) | specifying what expenses the scheme manager may be required |
| |
to contribute towards under subsection (2), |
| 10 |
(b) | providing for independent verification of the nature and |
| |
amount of expenses incurred (which may include provision |
| |
about appointment and payment of an auditor), and |
| |
(c) | providing for the method by which amounts to be contributed |
| |
| 15 |
(4) | The regulations must ensure that contributions required do not exceed |
| |
the amount of compensation that would have been payable under the |
| |
scheme if the stabilisation power had not been exercised and the bank |
| |
had been unable to satisfy claims against it; and for that purpose the |
| |
amount of compensation that would have been payable does not |
| 20 |
| |
(a) | amounts that would have been likely, at the time when the |
| |
stabilisation power was exercised, to be recovered by the |
| |
| |
(b) | any compensation actually paid to an eligible depositor of the |
| 25 |
| |
(5) | The regulations must provide for the appointment of an independent |
| |
valuer (who may be the person appointed as valuer under section 49 of |
| |
the Banking Act 2008 in respect of the exercise of the stabilisation |
| |
power) to calculate the amounts referred to in subsection (4)(a); and the |
| 30 |
| |
(a) | must provide for the valuer to be appointed by the Treasury or |
| |
by a person designated by the Treasury, |
| |
(b) | must include provision enabling the valuer to reconsider a |
| |
| 35 |
(c) | must provide a right of appeal to a court or tribunal, |
| |
(d) | must provide for payment of the valuer, |
| |
(e) | may replicate or apply a provision of section 49 or 50, and |
| |
(f) | may apply or include any provision that is or could be made |
| |
| 40 |
(6) | The regulations may include provision— |
| |
| |
(b) | about procedures to be followed; |
| |
(c) | for discretionary functions to be exercised by a specified body |
| |
or by persons of a specified class; |
| 45 |
(d) | about the resolution of disputes (which may include provision |
| |
conferring jurisdiction on a court or tribunal). |
| |
|
| |
|
| |
|
(7) | The compensation scheme may include provision about contributions |
| |
under and levies in connection with this section, provided that it is not |
| |
inconsistent with this section or regulations under it.” |
| |
158 | Investing in National Loans Fund |
| |
After section 223 of the Financial Services and Markets Act 2000 (management |
| 5 |
| |
“223A | Investing in National Loans Fund |
| |
(1) | Sums levied for the purpose of maintaining a contingency fund may be paid to |
| |
| |
(2) | The Treasury may receive sums under subsection (1) and may set terms and |
| 10 |
| |
(3) | Sums received shall be treated as if raised under section 12 of the National |
| |
Loans Act 1968 (and shall therefore be invested as part of the National Loans |
| |
| |
(4) | Interest accruing on the invested sums may be credited to the contingency |
| 15 |
fund (subject to any terms and conditions set under subsection (2)). |
| |
(5) | The Treasury shall comply with any request of the scheme manager to arrange |
| |
for the return of sums for the purpose of making payments out of a contingency |
| |
fund (subject to any terms and conditions set under subsection (2)).” |
| |
159 | Borrowing from National Loans Fund |
| 20 |
After section 223A of the Financial Services and Markets Act 2000 (investing in |
| |
National Loans Fund - inserted by section 158 above) insert— |
| |
“223B | Borrowing from National Loans Fund |
| |
(1) | The scheme manager may request a loan from the National Loans Fund for the |
| |
purpose of funding expenses incurred or expected to be incurred under the |
| 25 |
| |
(2) | The Treasury may arrange for money to be paid out of the National Loans |
| |
Fund in pursuance of a request under subsection (1). |
| |
(3) | The Treasury shall determine— |
| |
(a) | the rate of interest on a loan, and |
| 30 |
(b) | other terms and conditions. |
| |
(4) | The Treasury may make regulations— |
| |
(a) | about the amounts that may be borrowed under this section; |
| |
(b) | permitting the scheme manager to impose levies under section 213 for |
| |
the purpose of meeting expenses in connection with loans under this |
| 35 |
| |
(c) | about the classes of person on whom those levies may be imposed; |
| |
(d) | about the amounts and timing of those levies. |
| |
(5) | The compensation scheme may include provision about borrowing under this |
| |
section provided that it is not inconsistent with regulations under this |
| 40 |
| |
|
| |
|