House of Commons Amendments

House of Commons

Session 2007 - 08
Internet Publications
Other Bills before Parliament

61

House of Commons

Notices of Amendments

given on

Thursday 30th October 2008

For other Amendment(s) see the following page(s):

Banking Bill Committee 51-59

Public Bill Committee

Banking Bill

Ian Pearson

87

Clause  2,  page  2,  line  28,  at end insert—

‘( )
Where a stabilisation power is exercised in respect of a bank, it does not cease to

be a bank for the purposes of this Part if it later loses the permission referred to

in subsection (1).’.

Ian Pearson

88

Clause  3,  page  3,  line  1,  leave out from ‘assistance”’ to end of line 2 and insert ‘has

the meaning given by section [“Financial assistance”].’.

Ian Pearson

89

Clause  5,  page  3,  line  39,  leave out paragraph (f).

Ian Pearson

90

Clause  12,  page  7,  leave out line 4.

Ian Pearson

91

Clause  12,  page  7,  line  5,  leave out ‘transferees under share transfer orders’ and

insert ‘banks taken into temporary public ownership under this section’.

Notices of Amendments: 30th October 2008
62

Banking Bill, continued

Ian Pearson

92

Clause  25,  page  11,  line  23,  at end insert ‘—

(a)
provides for the transfer of securities which were issued by the bank

before the original instrument and have not been transferred by the

original instrument or another supplemental share transfer instrument;

(b)
’.

Ian Pearson

93

Clause  26,  page  12,  line  2,  leave out paragraph (a) and insert—

‘(a)
provides for the transfer of securities which were issued by the bank

before the original order and have not been transferred by the original

order or another supplemental share transfer order;’.

Ian Pearson

94

Clause  26,  page  12,  line  18,  leave out ‘10(2)’ and insert ‘12(2)’.

Ian Pearson

95

Clause  27,  page  12,  line  25,  leave out paragraph (a) and insert—

‘(a)
provides for the transfer of—

(i)
securities which were issued by the bank before the original

order and have been transferred by the original order or a

supplemental share transfer order, or

(ii)
securities which were issued by the bank after the original

order;’.

Ian Pearson

96

Clause  39,  page  17,  line  39,  leave out subsection (5).

Ian Pearson

97

Clause  41,  page  19,  line  4,  leave out subsection (4).

Ian Pearson

98

Clause  44,  page  21,  line  6,  leave out ‘establishing a scheme for’.

Ian Pearson

99

Clause  44,  page  21,  line  7,  leave out ‘determining’ and insert ‘establishing a

scheme for determining’.

Ian Pearson

100

Clause  44,  page  21,  line  7,  after ‘compensation,’, insert ‘or providing for

transferors to be paid compensation,’.

Notices of Amendments: 30th October 2008
63

Banking Bill, continued

Ian Pearson

101

Clause  44,  page  21,  line  8,  at beginning insert ‘establising a scheme for’.

Ian Pearson

102

Clause  48,  page  22,  line  13,  at end insert—

‘(aa)
the Treasury makes a reverse share transfer order under section [Reverse

share transfer],’.

Ian Pearson

103

Clause  48,  page  22,  line  15,  at end insert—

‘(ba)
the Bank of England makes a bridge bank reverse share transfer

instrument under section [Bridge bank: reverse share transfer],’.

Ian Pearson

104

Clause  48,  page  22,  line  17,  leave out ‘or’ and insert—

‘(ca)
the Bank of England makes a reverse property transfer instrument under

section [Reverse property transfer],’.

Ian Pearson

105

Clause  48,  page  22,  line  18,  at end insert—


‘, or

(da)
the Treasury make a reverse property transfer order under section

[Temporary public ownership: reverse property transfer],’.

Ian Pearson

106

Clause  49,  page  22,  line  23,  leave out ‘must’ and insert ‘may’.

Ian Pearson

107

Clause  49,  page  22,  line  25,  at end insert ‘; and subsections (2) to (5) apply to an

order which includes provision for an independent valuer.’.

Ian Pearson

108

Clause  51,  page  23,  line  38,  leave out ‘and’.

Ian Pearson

109

Clause  51,  page  23,  line  39,  at end insert ‘, and—

(d)
monitors.’.

Notices of Amendments: 30th October 2008
64

Banking Bill, continued

Ian Pearson

110

Clause  53,  page  25,  line  8,  at end insert—

‘(2A)
A resolution fund order may include provision for—

(a)
an independent valuer to make a determination under the order (in which

case sections 49(2) to (5), 50 and 51 shall apply);

(b)
valuation principles to be applied in making a determination (in which

case section 52(2) shall apply).’.

Ian Pearson

111

Clause  54,  page  25,  line  40,  leave out ‘and 50’ and insert ‘to 51’.

Ian Pearson

112

Clause  56,  page  27,  line  6,  after ‘order’, insert—

‘(a)
shall be made by statutory instrument, and

(b)
’.

Banking Liaison Panel

Ian Pearson

NC8

To move the following Clause:—

‘(1)
The Treasury shall make arrangements for a panel to advise the Treasury about

the exercise of powers to make statutory instruments under or by virtue of this

Part, Part 2 or Part 3 (excluding the stabilisation powers, compensation scheme

orders, resolution fund orders and third party compensation orders).

(2)
The Treasury shall ensure that the panel includes—

(a)
a member appointed by the Treasury,

(b)
a member appointed by the Bank of England,

(c)
a member appointed by the FSA,

(d)
a member appointed by the scheme manager of the Financial Services

Compensation Scheme,

(e)
one or more persons who in the Treasury’s opinion represent the interests

of banks,

(f)
one or more persons who in the Treasury’s opinion have expertise in law

relating to the financial systems of the United Kingdom, and

(g)
one or more persons who in the Treasury’s opinion have expertise in

insolvency law and practice.’.

“Financial assistance”

Ian Pearson

NC9

To move the following Clause:—

‘(1)
In this Act “financial assistance” includes giving guarantees or indemnities and

any other kind of financial assistance (actual or contingent).

Notices of Amendments: 30th October 2008
65

Banking Bill, continued

(2)
The Treasury may by order provide that a specified activity or transaction, or

class of activity or transaction, is to be or not to be treated as financial assistance

for a specified purpose of this Act; and subsection (1) is subject to this subsection.

(3)
An order—

(a)
shall be made by statutory instrument, and

(b)
shall be subject to annulment in pursuance of a resolution of either House

of Parliament.’.

Reverse share transfer

Ian Pearson

NC10

To move the following Clause:—

‘(1)
This section applies where the Treasury have made a share transfer order in

accordance with section 12(2) (“the original order”) providing for the transfer of

securities issued by a bank to a person (“the original transferee”).

(2)
The Treasury may make one or more reverse share transfer orders in respect of

securities issued by the bank and held by the original transferee (whether or not

they were transferred by the original order).

(3)
If the Treasury makes an onward share transfer order in respect of securities

transferred by the original order, the Treasury may make one or more reverse

share transfer orders in respect of securities—

(a)
issued by the bank, and

(b)
held by a transferee under the onward share transfer order of any of the

following kinds—

(i)
a company wholly owned by the Bank of England,

(ii)
a company wholly owned by the Treasury, or

(iii)
a nominee of the Treasury.

(4)
A reverse share transfer order is a share transfer order which—

(a)
provides for transfer to the transferor under the original order (where

subsection (2) applies);

(b)
provides for transfer to the original transferee (where subsection (3)

applies);

(c)
makes other provision for the purposes of, or in connection with, the

transfer of securities which are, could be or could have been transferred

under paragraph (a) or (b).

(5)
Sections 7, 9 and 47 do not apply to a reverse share transfer order (but it is to be

treated in the same way as any other share transfer order for all other purposes

including for the purposes of the application of a power under this Part).

(6)
Before making a reverse share transfer order the Treasury must consult—

(a)
the FSA, and

(b)
the Bank of England.

(7)
Section 26 applies where the Treasury have made a reverse share transfer order.’.

Notices of Amendments: 30th October 2008
66

Banking Bill, continued

Bridge bank: reverse share transfer

Ian Pearson

nc11

To move the following Clause:—

‘(1)
This section applies where the Bank of England has made a bridge bank share

transfer instrument in accordance with section 28(2) (“the original instrument”)

providing for the transfer of securities to—

(a)
a company wholly owned by the Bank of England,

(b)
a company wholly owned by the Treasury, or

(c)
a nominee of the Treasury.

(2)
The Bank of England may make one or more bridge bank reverse share transfer

instruments in respect of securities issued by the bridge bank and held by a person

within subsection (1)(a) to (c).

(3)
A bridge bank reverse share transfer instrument is a share transfer instrument

which—

(a)
provides for transfer to the transferor under the original instrument;

(b)
makes other provision for the purposes of, or in connection with, the

transfer of securities which are, could be or could have been transferred

under paragraph (a).

(4)
Sections 7, 8 and 47 do not apply to a bridge bank reverse share transfer

instrument (but it is to be treated in the same way as any other share transfer

instrument for all other purposes including for the purposes of the application of

a power under this Part).

(5)
Before making a bridge bank reverse share transfer instrument the Bank of

England must consult—

(a)
the FSA, and

(b)
the Treasury.

(6)
Section 25 applies where the Bank of England has made a bridge bank reverse

share transfer instrument.’.

Reverse property transfer

Ian Pearson

nc12

To move the following Clause:—

‘(1)
This section applies where the Bank of England has made a property transfer

instrument in accordance with section 11(2) (“the original instrument”) providing

for the transfer of property, rights or liabilities to a bridge bank.

(2)
The Bank of England may make one or more reverse property transfer

instruments in respect of property, rights or liabilities of the bridge bank.

(3)
If the Bank of England makes an onward property transfer instrument under

section 40 the Bank may make one or more reverse property transfer instruments

in respect of property, rights or liabilities of a transferee of any of the following

kinds under the onward property transfer instrument——

(a)
a company wholly owned by the Bank of England,

(b)
a company wholly owned by the Treasury, or

(c)
a company wholly owned by a nominee of the Treasury.

(4)
A reverse property transfer instrument is a property transfer instrument which—

Notices of Amendments: 30th October 2008
67

Banking Bill, continued

(a)
provides for transfer to the transferor under the original instrument

(where subsection (2) applies);

(b)
provides for transfer to the bridge bank (where subsection (3) applies);

(c)
makes other provision for the purposes of, or in connection with, the

transfer of property, rights or liabilities that are, could be or could have

been transferred under paragraph (a) or (b) (whether the transfer has been

or is to be effected by that instrument or otherwise).

(5)
Sections 7, 8 and 46 do not apply to a reverse property transfer instrument (but it

is to be treated in the same way as any other property transfer instrument for all

other purposes including for the purposes of the application of a power under this

Part).

(6)
Before making a reverse property transfer instrument the Bank of England must

consult—

(a)
the FSA, and

(b)
the Treasury.

(7)
Section 39 applies where the Bank of England has made a reverse property

transfer instrument.’.

Temporary public ownership: reverse property transfer

Ian Pearson

nc13

To move the following Clause:—

‘(1)
This section applies where the Treasury have made a property transfer order in

accordance with section 41(2) (“the original order”) providing for the transfer of

property, rights or liabilities to a company wholly owned by—

(a)
the Bank of England,

(b)
the Treasury, or

(c)
a nominee of the Treasury.

(2)
The Treasury may make one or more reverse property transfer orders in respect

of property, rights or liabilities of the transferee under the original order.

(3)
A reverse property transfer order is a property transfer order which—

(a)
provides for transfer to the transferor under the original order;

(b)
makes other provision for the purposes of, or in connection with, the

transfer of property, rights or liabilities which are, could be or could have

been transferred.

(4)
Sections 7, 8 and 9 do not apply to a reverse property transfer order.

(5)
A reverse property transfer order is to be treated—

(a)
in the same way as a share transfer order for the procedural purposes of

section 24, but

(b)
as a property transfer instrument for all other purposes (including for the

purposes of the application of a power under this Part).

(6)
In the application of section 36 by virtue of subsection (5)(b) above, the power to

give directions under section 36(7) vests in the Treasury (instead of the Bank of

England).

(7)
Before making a reverse property transfer order the Treasury must consult—

(a)
the FSA, and

(b)
the Bank of England.