|
| |
| |
| |
(1) | Before imposing a sanction on the operator of an inter-bank payment system |
| |
the Bank of England must— |
| |
(a) | give the operator a notice (a “warning notice”), |
| |
(b) | give the operator at least 21 days to make representations, and |
| 5 |
(c) | consider any representations made. |
| |
(2) | In subsection (1) “imposing a sanction” means— |
| |
(a) | publishing details under section 191, |
| |
(b) | requiring the payment of a penalty under section 192, |
| |
(c) | giving a closure order under section 193, or |
| 10 |
(d) | making an order under section 194. |
| |
(3) | Despite subsection (1), if satisfied that it is necessary the Bank may without |
| |
| |
(a) | give a closure order under section 193, or |
| |
(b) | make an order under section 194. |
| 15 |
| |
(1) | An appeal lies to the Financial Services and Markets Tribunal against the |
| |
imposition of a sanction on the operator of an inter-bank payment system. |
| |
(2) | In subsection (1) the imposition of a sanction means— |
| |
(a) | giving a warning notice of publication under section 191, |
| 20 |
(b) | giving a warning notice of a requirement to pay a penalty under section |
| |
| |
(c) | giving a closure order under section 193, and |
| |
(d) | making an order under section 194. |
| |
(3) | Part 9 of the Financial Services and Markets Act 2000 applies to appeals under |
| 25 |
this section; and for that purpose— |
| |
(a) | a reference to the FSA is to be taken as a reference to the Bank of |
| |
| |
(b) | a reference to a decision notice is to be taken as a reference to the notice |
| |
or order mentioned in subsection (2), and |
| 30 |
(c) | Part 9 is to be read with any other necessary modifications. |
| |
| |
| |
(1) | The Bank of England may require operators of recognised inter-bank payment |
| |
| 35 |
(2) | A requirement under subsection (1) must relate to a scale of fees approved by |
| |
the Treasury by regulations. |
| |
(3) | Regulations under subsection (2)— |
| |
(a) | shall be made by statutory instrument, and |
| |
(b) | shall be subject to annulment in pursuance of a resolution of either |
| 40 |
| |
| |
| |
|
| |
| |
(4) | A requirement under subsection (1) may be enforced by the Bank as a debt. |
| |
| |
(1) | The Bank of England may by notice in writing require a person to provide |
| |
| |
(a) | which the Bank thinks will help the Treasury in determining whether |
| 5 |
to make a recognition order, or |
| |
(b) | which the Bank otherwise requires in connection with its functions |
| |
| |
(2) | In particular, a notice may require the operator of a recognised inter-bank |
| |
payment system to notify the Bank if events of a specified kind occur. |
| 10 |
(3) | A notice may require information to be provided— |
| |
(a) | in a specified form or manner; |
| |
| |
(c) | in respect of a specified period. |
| |
(4) | The Bank may disclose information obtained by virtue of this section to— |
| 15 |
| |
| |
(c) | an authority in a country or territory outside the United Kingdom |
| |
which exercises functions similar to those of the Treasury, the Bank of |
| |
England or the FSA in relation to inter-bank payment systems; |
| 20 |
(d) | the European Central Bank; |
| |
(e) | the Bank for International Settlements. |
| |
| |
(a) | overrides a contractual or other requirement to keep information in |
| |
| 25 |
(b) | is without prejudice to any other power to disclose information. |
| |
(6) | The Treasury may by regulations permit the disclosure of information |
| |
obtained by virtue of this section to a specified person. |
| |
(7) | The Bank may publish information obtained by virtue of this section. |
| |
(8) | The Treasury may make regulations about the manner and extent of |
| 30 |
publication under subsection (7). |
| |
(9) | Regulations under this section— |
| |
(a) | shall be made by statutory instrument, and |
| |
(b) | shall be subject to annulment in pursuance of a resolution of either |
| |
| 35 |
| |
(a) | to fail without reasonable excuse to comply with a requirement under |
| |
| |
(b) | knowingly or recklessly to give false information in pursuance of this |
| |
| 40 |
(11) | A person guilty of an offence is liable— |
| |
(a) | on summary conviction, to a fine not exceeding the statutory |
| |
| |
| |
| |
|
| |
| |
(b) | on conviction on indictment, to a fine. |
| |
199 | Pretending to be recognised |
| |
(1) | It is an offence for the operator of a non-recognised inter-bank payment |
| |
| |
(a) | to assert that the system is recognised, or |
| 5 |
(b) | to do anything which suggests that the system is recognised. |
| |
(2) | A person guilty of an offence is liable— |
| |
(a) | on summary conviction, to a fine not exceeding the statutory |
| |
| |
(b) | on conviction on indictment, to a fine. |
| 10 |
200 | Saving for informal oversight |
| |
(1) | Nothing in this Part prevents the Bank of England from having dealings with |
| |
the operators of payment systems to which this Part does not apply. |
| |
(2) | Nothing in this Part prevents the Bank from having dealings, other than |
| |
through the provisions of this Part, with the operators of payment systems to |
| 15 |
which this Part does apply. |
| |
| |
Banknotes: Scotland and Northern Ireland |
| |
| |
| 20 |
| |
(a) | repeals existing provisions about permission to issue banknotes in |
| |
Scotland and Northern Ireland, and |
| |
(b) | replaces the provisions, but only for banks which already have |
| |
permission to issue banknotes. |
| 25 |
| |
| |
In this Part “banknote” means a promissory note, bill of exchange or other |
| |
| |
(a) | records an engagement to pay money, |
| 30 |
(b) | is payable to the bearer on demand, and |
| |
(c) | is designed to circulate as money. |
| |
| |
(1) | For the purposes of this Part a banknote is issued when it passes— |
| |
(a) | from a person who holds it not as bearer but as a person carrying on the |
| 35 |
business of banking (“the issuing bank”), and |
| |
| |
| |
|
| |
| |
(b) | to a person taking as bearer (“the bearer”). |
| |
(2) | In subsection (1)(a) the reference to a banknote passing from the issuing bank |
| |
includes a reference to it passing— |
| |
(a) | from the issuing bank’s agent, or |
| |
(b) | from a person printing or preparing the banknote for, or taking it to, the |
| 5 |
issuing bank or its agent. |
| |
(3) | For the purposes of subsection (1)(b) it does not matter whether the bearer also |
| |
holds the banknote for use in the business of banking. |
| |
| |
In this Part “authorised bank” means a bank which immediately before |
| 10 |
commencement was authorised to issue banknotes in Scotland or Northern |
| |
| |
| |
In this Part “commencement” means the date set for the coming into force of |
| |
section 206 (under the commencement power in section 250). |
| 15 |
| |
206 | Repeal of old authorising enactments |
| |
The following shall cease to have effect— |
| |
(a) | section 1 of the Bank Notes (Scotland) Act 1845 (authorisation to issue |
| |
| 20 |
(b) | section 8 of the Bankers (Ireland) Act 1845 (authorisation to issue |
| |
| |
207 | Saving for existing issuers |
| |
An authorised bank may continue to issue banknotes after commencement, but |
| |
| 25 |
(a) | in accordance with the provisions of this Part, and |
| |
(b) | in the Part of the United Kingdom in which it was authorised to issue |
| |
banknotes before commencement. |
| |
208 | Consequential repeals and amendments |
| |
(1) | In the Bankers (Ireland) Act 1845— |
| 30 |
(a) | sections 9 to 23 cease to have effect, |
| |
(b) | in section 26 for “except the Bank Notes of such Bankers as are hereby |
| |
authorised to continue to issue Bank Notes as aforesaid” substitute |
| |
“except banknotes issued in reliance on section 207 of the Banking Act |
| |
| 35 |
(c) | section 28 ceases to have effect, and |
| |
(d) | Schedules A and B cease to have effect. |
| |
(2) | In the Bank Notes (Scotland) Act 1845— |
| |
| |
| |
|
| |
| |
(a) | every section ceases to have effect except for sections 16, 18, 21 and 22, |
| |
| |
(b) | in section 18 for “except the Bank Notes of such Bankers as are hereby |
| |
authorised to continue to issue Bank Notes as aforesaid” substitute |
| |
“except banknotes issued in reliance on section 207 of the Banking Act |
| 5 |
| |
(3) | The following cease to have effect— |
| |
(a) | section 12 of the Bank Charter Act 1844, |
| |
(b) | section 9 of the Currency and Bank Notes Act 1928, |
| |
(c) | sections 1 and 3 of, and the Schedule to, the Bankers (Northern Ireland) |
| 10 |
| |
(d) | in the Coinage Act 1971— |
| |
(i) | section 12(4)(b) and (c), and |
| |
(ii) | in Schedule 2 the entries relating to— |
| |
(a) | the Bankers (Ireland) Act 1845, |
| 15 |
(b) | the Bank Notes (Scotland) Act 1845, and |
| |
(c) | section 3 of the Bankers (Northern Ireland) Act 1928. |
| |
| |
| |
(1) | The Treasury shall make regulations about the treatment, holding and issuing |
| 20 |
of banknotes by authorised banks (“banknote regulations”). |
| |
(2) | Banknote regulations— |
| |
(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. |
| 25 |
| |
(1) | Banknote regulations may require or permit the Bank of England to make rules |
| |
(“banknote rules”) about any aspect of the treatment, holding or issuing of |
| |
banknotes by authorised banks. |
| |
(2) | In particular, banknote regulations may require or permit banknote rules to do |
| 30 |
anything which banknote regulations may do. |
| |
| |
(a) | may make provision generally or only for specified purposes, cases or |
| |
| |
(b) | may make different provision for different purposes, cases or |
| 35 |
| |
| |
| |
(1) | Banknote regulations must require authorised banks to have backing assets. |
| |
| |
| |
|
| |
| |
(2) | “Backing assets” means assets of a kind specified by banknote regulations; and |
| |
the regulations may, in particular, specify— |
| |
(a) | banknotes issued by the Bank of England, |
| |
(b) | current coins of the United Kingdom, and |
| |
(c) | funds in a specified kind of account held with the Bank of England or |
| 5 |
with another specified institution or class of institution. |
| |
(3) | The regulations must— |
| |
(a) | require banknote rules to include provision for determining the value |
| |
of backing assets to be held, |
| |
(b) | require backing assets in the form of banknotes to be held either— |
| 10 |
(i) | by the Bank of England, or |
| |
(ii) | at one or more locations approved by the Bank of England, and |
| |
(c) | require backing assets held in the form of coins to be held at one or |
| |
more locations approved by the Bank of England. |
| |
(4) | The regulations may make other provision about backing assets; including, in |
| 15 |
| |
(a) | provision requiring a proportion of a bank’s backing assets to consist of |
| |
assets of a specified kind; |
| |
(b) | provision about the manner in which backing assets may or must be |
| |
| 20 |
(c) | provision about ownership of and interests in backing assets; |
| |
(d) | provision permitting backing assets to be held by an agent of an |
| |
| |
(5) | Banknote regulations may make provision about the treatment of backing |
| |
assets in relation to insolvency; in particular, the regulations may— |
| 25 |
(a) | modify or disapply a provision or rule of law about insolvency; |
| |
(b) | protect backing assets from being treated in the same way as other |
| |
| |
(c) | provide for banknotes to be exchanged by bearers within a specified |
| |
| 30 |
(d) | allow the Treasury to extend the period for exchange; |
| |
(e) | provide for exchange to be funded from backing assets; |
| |
(f) | provide for the Bank of England to acquire or control a bank’s backing |
| |
assets for the purpose of administering arrangements for exchange. |
| |
(6) | In subsection (5) a reference to “insolvency” includes a reference to— |
| 35 |
| |
| |
| |
| |
| 40 |
(f) | a composition between a bank and its creditors, |
| |
(g) | a scheme of arrangement of a bank’s affairs, and |
| |
(h) | a process under the law of a country or territory outside the United |
| |
Kingdom which the Treasury identify, in banknote regulations, as |
| |
serving a similar purpose to any of the processes listed in paragraphs |
| 45 |
| |
| |
| |
|
