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Banking Bill


 

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.

 
Bill 14754/3
 

 


 

Banking Bill

 

 
 

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.

 

Bill 147                                                                                                

54/3

 
 

Banking Bill

ii

 

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   

Effect

32   

Transferable property

33   

Continuity

34   

Licences

35   

Termination rights, &c.

36   

Foreign property

37   

Incidental provision

38   

Procedure

39   

Supplemental instruments

40   

Onward transfer

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   

Procedure

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

 
 

Banking Bill

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   

Temporary public ownership

73   

Distribution of assets on dissolution or winding up

74   

Interpretation

75   

Consequential provision

76   

Credit unions

Part 2

Bank Insolvency

Introduction

77   

Overview

78   

Interpretation: “bank”

79   

Interpretation: “the court”

80   

Interpretation: other expressions

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

 
 

Banking Bill

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   

Credit unions

119   

Partnerships

120   

Scottish partnerships

121   

Northern Ireland

122   

Consequential provision

Part 3

Bank Administration

Introduction

123   

Overview

124   

Objectives

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   

Application

130   

Grounds for applying

131   

Grounds for making

132   

General powers, duties and effect

133   

Status of bank administrator

134   

Administrator’s proposals

135   

Sharing information

 
 

Banking Bill

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

Miscellaneous

142   

Disqualification of directors

143   

Application of other law

144   

Other processes

145   

Building societies

146   

Credit unions

147   

Rules

148   

Fees

149   

Partnerships

150   

Scottish partnerships

151   

Co-operation between courts

152   

Interpretation: general

153   

Northern Ireland

154   

Consequential provision

Part 4

Financial Services Compensation Scheme

155   

Overview

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

Introduction

167   

Overview

168   

Interpretation: “inter-bank payment system”

169   

Interpretation: other expressions

 
 

 
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Revised 7 October 2008