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173

 

House of Commons

 
 

Tuesday 18th November 2008

 

Public Bill Committee

 

New Amendments handed in are marked thus Parliamentary Star

 

Parliamentary Star - whiteAmendments which will comply with the required notice period at their next appearance

 

Banking Bill


 

Note

 

The Amendments have been arranged in accordance with the Order of the

 

Committee [21st October].

 


 

Ian Pearson

 

163

 

Clause  132,  page  65,  line  33,  after ‘administration’ insert ‘or administrators’.

 

Ian Pearson

 

164

 

Clause  132,  page  65,  line  34,  after ‘insolvency’ insert ‘or liquidators).’.

 

Ian Pearson

 

165

 

Clause  132,  page  68,  line  27,  at end insert—

   

‘(b) Ignore sub-para. (3).’.

 
 

Ian Pearson

 

166

 

Clause  132,  page  71,  line  3,  at end insert—


 
 

Public Bill Committee: 18th November 2008                

174

 

Banking Bill, continued

 
 

‘Section 135

Provisional appointment

(a)    

Treat the reference to the presentation of

 
   

a winding-up petition as a reference to

 
   

the making of an application for a bank

 
   

administration order.

 
   

(b)    

Subsection (2) applies in relation to

 
   

England and Wales and Scotland (and

 
   

subsection (3) does not apply).

 
   

(c)    

Ignore the reference to the official

 
   

receiver.

 
   

(d)    

Only a person who is qualified to act as

 
   

an insolvency practitioner and who

 
   

consents to act may be appointed.

 
   

(e)    

The court may only confer on a

 
   

provisional bank administrator functions

 
   

in connection with the pursuance of

 
   

Objective 1; and section 125(2)(a) does

 
   

not apply before a bank administration

 
   

order is made.

 
   

(f)    

A provisional bank administrator may

 
   

not pursue Objective 2.

 
   

(g)    

The appointment of a provisional bank

 
   

administrator lapses on the appointment

 
   

of a bank administrator.’.

 
 

Mr David Gauke

 

179

 

Clause  132,  page  71,  leave out lines 28 to 33.

 


 

Ian Pearson

 

167

 

Clause  138,  page  75,  line  7,  after first ‘bank’ insert ‘(“the original bank”)’.

 

Ian Pearson

 

168

 

Clause  138,  page  75,  line  7,  after ‘bridge bank’ insert ‘(“the original bridge

 

bank”)’.

 

Ian Pearson

 

169

 

Clause  138,  page  75,  line  10,  after ‘bridge bank’ insert ‘to a transferee (“the

 

onward transferee”).’.

 

Ian Pearson

 

170

 

Clause  138,  page  75,  line  11,  leave out ‘transferee under the onward property

 

transfer instrument’ and insert ‘onward transferee’.

 

Ian Pearson

 

171

 

Clause  138,  page  75,  line  13,  after first ‘the’ insert ‘onward’.


 
 

Public Bill Committee: 18th November 2008                

175

 

Banking Bill, continued

 
 

Ian Pearson

 

172

 

Clause  138,  page  75,  line  15,  leave out ‘bridge bank under the original property

 

transfer instrument’ and insert ‘original bridge bank’.

 

Ian Pearson

 

173

 

Clause  138,  page  75,  line  17,  leave out subsection (3) and insert—

 

‘(3)    

In any other case, the Bank of England may determine that the original bridge

 

bank is to be treated as a residual bank for the purposes of this Part.

 

(3A)    

Where the original bridge bank is put into bank administration in reliance on

 

subsection (2)(b), Objective 1 shall apply in accordance with section 125(4) in

 

relation to both—

 

(a)    

services provided by the original bank to the original bridge bank, and

 

(b)    

services provided by the original bridge bank to the onward transferee.

 

(3B)    

Where the original bridge bank is put into bank administration in reliance on a

 

determination under subsection (3), Objective 1 shall apply in accordance with—

 

(a)    

section 125(3) in relation to services provided by the original bridge bank

 

to the onward transferee, and

 

(b)    

section 125(4) in relation to services provided by the original bank to the

 

original bridge bank.

 

(3C)    

But the Bank may determine—

 

(a)    

that subsection (3B) does not apply, and

 

(b)    

that section 137 shall apply as if the Bank had given—

 

(i)    

an Objective 1 Interim Achievement Notice in respect of the

 

original bridge bank, and

 

(ii)    

a notice under section 137(1)(b) in respect of the onward

 

transferee.’.

 

Ian Pearson

 

174

 

Clause  138,  page  75,  line  22,  leave out subsection (4).

 


 

Ian Pearson

 

15

 

Clause  143,  page  77,  line  11,   leave out subsection (2).

 


 

Ian Pearson

 

175

 

Clause  147,  page  78,  line  28,  leave out subsection (2) and insert—

 

‘(2)    

After subsection (1A) (inserted by section 112 above) insert—

 

“(1B)    

Rules may also be made for the purpose of giving effect to Part 3 of the

 

Banking Act 2008 (bank administration); and rules for that purpose shall

 

be made—


 
 

Public Bill Committee: 18th November 2008                

176

 

Banking Bill, continued

 
 

(a)    

in relation to England and Wales, by the Lord Chancellor with

 

the concurrence of—

 

(i)    

the Treasury, and

 

(ii)    

in the case of rules that affect court procedure, the Lord

 

Chief Justice, or

 

(b)    

in relation to Scotland, by the Treasury.”’.

 

Ian Pearson

 

176

 

Clause  147,  page  78,  line  30,  at end insert—

 

‘(2A)    

In subsection (2), after “(1A)” (inserted by section 112 above) insert “or (1B)”.’

 


 

Ian Pearson

 

16

 

Clause  154,  page  80,  line  25,   leave out ‘and an Act of the Scottish Parliament’.

 


 

Ian Pearson

 

33

 

Clause  239,  page  115,  line  5,  leave out ‘section 231 extends’ and insert ‘sections

 

[Registration of charges: Scotland] and 231 extend’.

 


 

New Clauses

 

“Financial institution”

 

Ian Pearson

 

NC3

 

To move the following Clause:—

 

‘(1)    

The Treasury may by order provide that a specified institution, or an institution

 

of a specified class, is or is not to be treated as a financial institution for the

 

purposes of section 214 or 215.

 

(2)    

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.’.

 



 
 

Public Bill Committee: 18th November 2008                

177

 

Banking Bill, continued

 
 

“Enactment”

 

Ian Pearson

 

NC5

 

To move the following Clause:—

 

‘In this Act “enactment” includes—

 

(a)    

subordinate legislation,

 

(b)    

an Act of the Scottish Parliament and an instrument under an Act of the

 

Scottish Parliament, and

 

(c)    

Northern Ireland legislation.’.

 


 

Registration of charges: Scotland

 

Ian Pearson

 

NC6

 

To move the following Clause:—

 

‘(1)    

The Bankruptcy and Diligence etc. (Scotland) Act 2007 is amended as follows.

 

(2)    

In section 38 (creation of floating charges)—

 

(a)    

in subsection (3), after “to” insert “subsection (3A) and”, and

 

(b)    

after that subsection insert—

 

“(3A)    

If a floating charge is granted in favour of a central institution, it

 

is created only when the document granting the floating charge

 

is executed by the company granting the charge.”

 

(3)    

In section 39 (advance notice of floating charges), after subsection (3) add—

 

“(4)    

This section does not apply where a company proposes to grant a floating

 

charge in favour of a central institution.”

 

(4)    

In section 42 (assignation of floating charges), after subsection (3) add—

 

“(4)    

This section does not apply where a floating charge is assigned (whether

 

in whole or to a specified extent) to or by a central institution.”

 

(5)    

In section 43 (alteration of floating charges)—

 

(a)    

in subsection (4), for “But paragraph” substitute “Paragraph”, and

 

(b)    

after that subsection insert—

 

“(4A)    

Paragraph (b) of subsection (3) above does not apply in respect

 

of an alteration if—

 

(a)    

the holder of the floating charge is a central institution,

 

or

 

(b)    

the holder of the floating charge is not a central

 

institution but the alteration is to be made in connection

 

with a floating charge which is held (or which has been

 

or is to be held) by a central institution.”

 

(6)    

In section 44 (discharge of floating charges), after subsection (3) add—

 

“(4)    

This section does not apply where the floating charge to be discharged

 

(whether in whole or to a specified extent) is or has been held by a central

 

institution.”


 
 

Public Bill Committee: 18th November 2008                

178

 

Banking Bill, continued

 
 

(7)    

In section 47 (interpretation), after “Part—” insert—

 

    

““central institution” means—

 

(a)    

the Bank of England,

 

(b)    

the central bank of a country or territory outside the United

 

Kingdom, or

 

(c)    

the European Central Bank;”.’

 


 

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).

 

(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


 
 

Public Bill Committee: 18th November 2008                

179

 

Banking Bill, continued

 
 

(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.’.

 



 
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