Banking Bill
EXPLANATORY NOTES
Explanatory notes to the Bill, prepared by the Treasury, are published separately as
Bill 147—EN.
EUROPEAN CONVENTION ON HUMAN RIGHTS
Mr Chancellor of the Exchequer has made the following statement under section
19(1)(a) of the Human Rights Act 1998:
In my view the provisions of the Banking Bill are compatible with the Convention
rights.
Contents
Part 1
Special Resolution Regime
Introduction
1
Overview
2
Interpretation: “bank”
3
Interpretation: other expressions
Objectives and code
4
Special resolution objectives
5
Code of practice
6
Code of practice: procedure
Exercise of powers: general
7
General conditions
8
Specific conditions: private sector purchaser and bridge bank
9
Specific conditions: temporary public ownership
The stabilisation options
10
Private sector purchaser
11
Bridge bank
12
Temporary public ownership
Transfer of securities
13
Interpretation: “securities”
14
Share transfer instrument
15
Share transfer order
16
Effect
17
Continuity
18
Conversion and delisting
19
Directors
20
Ancillary instruments: production, registration, &c.
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21
Termination rights, &c.
22
Incidental provision
23
Procedure: instruments
24
Procedure: orders
25
Supplemental instruments
26
Supplemental orders
27
Onward transfer
28
Bridge bank: share transfers
29
Interpretation: general
Transfer of property
30
Property transfer instrument
31
32
Transferable property
33
34
Licences
35
36
Foreign property
37
38
Procedure
39
40
41
Temporary public ownership: property transfer
42
Restriction of partial transfers
43
Power to protect certain interests
Compensation
44
Orders
45
Sale to private sector purchaser
46
Transfer to bridge bank
47
Transfer to temporary public ownership
48
Onward transfers
49
Independent valuer
50
Independent valuer: supplemental
51
Independent valuer: money
52
Valuation principles
53
Resolution fund
54
Third party compensation: discretionary provision
55
Third party compensation: mandatory provision
56
Incidental functions
57
General continuity obligation: property transfers
58
Special continuity obligations: property transfers
59
General continuity obligation: share transfers
60
Special continuity obligations: share transfers
61
Pensions
62
Enforcement
63
Disputes
64
Tax
65
Power to change law
iii
Treasury
66
International obligation notice: general
67
International obligation notice: bridge bank
68
Public funds: general
69
Public funds: bridge bank
70
Bridge bank: report
Building societies, &c.
71
Application of Part 1: general
72
73
Distribution of assets on dissolution or winding up
74
Interpretation
75
Consequential provision
76
Credit unions
Part 2
Bank Insolvency
77
78
79
Interpretation: “the court”
80
Bank insolvency order
81
The order
82
Application
83
Grounds for applying
84
Grounds for making
85
Commencement
Process of bank liquidation
86
Objectives
87
Liquidation committee
88
Liquidation committee: supplemental
89
Objective 1: (a) or (b)?
90
General powers, duties and effect
91
Additional general powers
92
Status of bank liquidator
Tenure of bank liquidator
93
Term of appointment
94
Resignation
95
Removal by court
96
Removal by creditors
97
Disqualification
98
Release
99
Replacement
iv
Termination of process, &c.
100
Company voluntary arrangement
101
Administration
102
Dissolution
103
Dissolution: supplemental
Other processes
104
Bank insolvency as alternative order
105
Voluntary winding-up
106
Exclusion of other procedures
107
Notice to FSA of preliminary steps
108
Disqualification of directors
109
Application of insolvency law
Miscellaneous
110
Role of FSCS
111
Transfer of accounts
112
Rules
113
Fees
114
Insolvency Services Account
115
Evidence
116
Co-operation between courts
117
Building societies
118
119
Partnerships
120
Scottish partnerships
121
Northern Ireland
122
Part 3
Bank Administration
123
124
125
Objective 1: supporting private sector purchaser or bridge bank
126
Objective 1: duration
127
Objective 2: “normal” administration
Process
128
Bank administration order
129
130
131
132
133
Status of bank administrator
134
Administrator’s proposals
135
Sharing information
v
Multiple transfers
136
General application of this Part
137
Bridge bank to private purchaser
138
Property transfer from bridge bank
139
Property transfer from temporary public ownership
Termination
140
Successful rescue
141
Winding-up or voluntary arrangement
142
143
Application of other law
144
145
146
147
148
149
150
151
152
153
154
Part 4
Financial Services Compensation Scheme
155
156
Contingency funding
157
Special resolution regime
158
Investing in National Loans Fund
159
Borrowing from National Loans Fund
160
Procedure for claims
161
Rights in insolvency
162
Information
163
Payments in error
164
Regulations
165
Delegation of functions
166
Functions under this Act
Part 5
Inter-Bank Payment Systems
167
168
Interpretation: “inter-bank payment system”
169