|
| |
|
150 | Application of other law |
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(1) | The Secretary of State and the Treasury may by order made jointly— |
| |
(a) | provide for an enactment about insolvency or administration to apply |
| |
to bank administration (with or without specified modifications); |
| |
(b) | amend, or modify the application of, an enactment about insolvency or |
| 5 |
administration in consequence of this Part. |
| |
(2) | An order under subsection (1)— |
| |
(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. |
| 10 |
| |
(1) | Before exercising an insolvency power in respect of a residual bank the FSA |
| |
must give notice to the Bank of England, which may participate in any |
| |
proceedings arising out of the exercise of the power. |
| |
| 15 |
(a) | “residual bank” means a bank all or part of whose business has been |
| |
transferred to a commercial purchaser in accordance with section 11 or |
| |
to a bridge bank in accordance with section 12, and |
| |
(b) | “insolvency power” means— |
| |
(i) | section 359 of the Financial Services and Markets Act 2000 |
| 20 |
(application for administration order), and |
| |
(ii) | section 367 of that Act (winding-up petition). |
| |
| |
(1) | The Treasury may by order provide for this Part to apply to building societies |
| |
(within the meaning of section 119 of the Building Societies Act 1986) as it |
| 25 |
applies to banks, subject to modifications set out in the order. |
| |
| |
(a) | amend the Building Societies Act 1986 or any other enactment which |
| |
relates, or in so far as it relates, to building societies; |
| |
(b) | amend an enactment amended by this Part; |
| 30 |
(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 building societies. |
| |
| |
(a) | shall be made by statutory instrument, and |
| 35 |
(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 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. |
| |
| 5 |
(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; |
| |
(c) | replicate, with or without modifications, a provision of this Part; |
| 10 |
(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 |
| |
(b) | may not be made unless a draft has been laid before and approved by |
| 15 |
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. |
| |
| |
(1) | Section 411 of the Insolvency Act 1986 (company insolvency rules) is amended |
| 20 |
| |
(2) | After subsection (1A) (inserted by section 119 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 |
| |
| 25 |
(a) | in relation to England and Wales, by the Lord Chancellor with |
| |
| |
| |
(ii) | in the case of rules that affect court procedure, the Lord |
| |
| 30 |
(b) | in relation to Scotland, by the Treasury.” |
| |
(3) | In subsection (2), after “(1A)” (inserted by section 119 above) insert “or (1B)”. |
| |
(4) | After subsection (2C) (inserted by section 119 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 |
| 35 |
includes a reference to doing anything under or for the purposes of Part |
| |
3 of the Banking Act 2008.” |
| |
| |
(a) | after “bank liquidator” (inserted by section 119 above) insert “or |
| |
| 40 |
(b) | after “Part 2” (inserted by section 119 above) insert “or 3”. |
| |
|
| |
|
| |
|
| |
After section 414(8A) of the Insolvency Act 1986 (fees orders - inserted by |
| |
section 120 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.” |
| 5 |
| |
In section 433(1) of the Insolvency Act 1986 (admissibility of statements of |
| |
affairs) after paragraph (aa) (inserted by section 122 above) insert (before the |
| |
| |
“(ab) | a statement made in pursuance of a requirement imposed by or |
| 10 |
under Part 3 of that Act (bank administration),”. |
| |
| |
(1) | The Lord Chancellor may, by order made with the concurrence of the Secretary |
| |
of State and the Lord Chief Justice, modify provisions of this Part in their |
| |
application to partnerships. |
| 15 |
(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 |
| |
| |
(3) | This section does not apply in relation to partnerships constituted under the |
| |
| 20 |
158 | 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. |
| |
| |
(a) | shall be made by statutory instrument, and |
| 25 |
(b) | shall be subject to annulment in pursuance of a resolution of either |
| |
| |
159 | Co-operation between courts |
| |
(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). |
| 30 |
(2) | At the end of that section (after the subsection added by section 123) add— |
| |
“(14) | Section 159 of the Banking Act 2008 provides for provisions of that Act |
| |
about bank administration to be “insolvency law” for the purposes of |
| |
| |
160 | Interpretation: general |
| 35 |
(1) | In this Part “the court” means— |
| |
(a) | in England and Wales, the High Court, |
| |
(b) | in Scotland, the Court of Session, and |
| |
(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 |
| |
(b) | section 123 of the Insolvency Act 1986 (inability to pay debts) also |
| 5 |
| |
| for the purposes of paragraph (a) “agreement” means an agreement the |
| |
making or performance of which constitutes or is part of a regulated activity |
| |
| |
(4) | Expressions used in this Part and in the Insolvency Act 1986 have the same |
| 10 |
| |
(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. |
| |
| 15 |
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 |
| |
(incorporating any necessary modification) is made to the equivalent |
| 20 |
enactment having effect in relation to Northern Ireland, |
| |
(c) | the reference in section 153 to section 31 of the Credit Unions Act 1979 |
| |
is to be treated as a reference to Article 2 of the Credit Unions (Northern |
| |
| |
| 25 |
(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 |
| |
Chief Justice in Northern Ireland. |
| 30 |
162 | 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) passed before the commencement of this Part. |
| |
| 35 |
(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. |
| |
|
| |
|
| |
|
| |
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 |
| 5 |
Services and Markets Act 2000. |
| |
| |
(1) | After section 214 of the Financial Services and Markets Act 2000 (compensation |
| |
| |
“214A | Contingency funding |
| 10 |
(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 |
| |
| |
(2) | Contingency fund regulations may make provision about the |
| 15 |
establishment and management of contingency funds; in particular, the |
| |
regulations may make provision about— |
| |
(a) | the number and size of funds; |
| |
(b) | the circumstances and timing of their establishment; |
| |
(c) | the classes of person from whom contributions to the funds may |
| 20 |
| |
(d) | the amount and timing of payments into and out of funds |
| |
(which may include provision for different levies for different |
| |
| |
| 25 |
(f) | the ways in which funds’ contents may be invested (including |
| |
(i) the extent of reliance on section 223A, and (ii) the application |
| |
| |
(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 |
| 30 |
compensation, (ii) for the purposes of co-operating with a bank |
| |
liquidator in accordance with section 93 of the Banking Act |
| |
2008, or (iii) for contributions under section 214B; |
| |
(h) | procedures to be followed in connection with funds, including |
| |
the keeping of records and the provision of information. |
| 35 |
(3) | The compensation scheme may include provision about contingency |
| |
funds provided that it is not inconsistent with contingency fund |
| |
| |
(2) | At the end of section 213(7) (compensation scheme: further provision) add |
| |
“(except where limitations are expressly stated)”. |
| 40 |
(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.” |
| |
|
| |
|