|
| |
| |
(2) | An order must provide for the independent valuer to be appointed by a person |
| |
appointed by the Treasury (“the appointing person”). |
| |
| |
(a) | require the Treasury to make arrangements to identify a number of |
| |
possible independent valuers, one of whom is to be selected by the |
| 5 |
| |
(b) | require the appointing person to make arrangements to select the |
| |
independent valuer, having regard to any criteria specified in the order. |
| |
(4) | The independent valuer may be removed only— |
| |
(a) | on the grounds of incapacity or serious misconduct, and |
| 10 |
(b) | by a person specified by the Treasury in accordance with the |
| |
compensation scheme order. |
| |
(5) | An order must include provision for resignation and replacement of the |
| |
independent valuer (and subsections (2) and (3) apply to replacement as to the |
| |
| 15 |
55 | Independent valuer: supplemental |
| |
(1) | An independent valuer may do anything necessary or desirable for the |
| |
purposes of or in connection with the performance of the functions of the |
| |
| |
(2) | The Treasury may by order confer specific functions on independent valuers; |
| 20 |
in particular, the order may— |
| |
(a) | enable an independent valuer to apply to a court or tribunal for an |
| |
order requiring the provision of information or the giving of oral or |
| |
| |
(b) | enable or require independent valuers to publish, disclose or withhold |
| 25 |
| |
(3) | Provision under subsection (2) may— |
| |
(a) | confer a discretion on independent valuers; |
| |
(b) | confer jurisdiction on a court or tribunal; |
| |
(c) | make provision about oaths, expenses and other procedural matters |
| 30 |
relating to the giving of evidence or the provision of information; |
| |
(d) | create a criminal offence; |
| |
(e) | make other provision about enforcement. |
| |
(4) | An independent valuer may appoint staff. |
| |
(5) | The Treasury may by order make provision about the procedure to be followed |
| 35 |
| |
(6) | The Treasury shall by order make provision for— |
| |
(a) | reconsideration of a decision of an independent valuer, and |
| |
(b) | appeal to a court or tribunal against a decision of an independent |
| |
| 40 |
(7) | Independent valuers (and their staff) are neither servants nor agents of the |
| |
Crown (and, in particular, are not civil servants). |
| |
(8) | Records of an independent valuer are public records for the purposes of the |
| |
| |
| |
| |
|
| |
| |
(9) | An order under this section— |
| |
(a) | shall be made by statutory instrument, and |
| |
(b) | shall be subject to annulment in pursuance of a resolution of either |
| |
| |
56 | Independent valuer: money |
| 5 |
(1) | The Treasury may by order provide for the payment by the Treasury of |
| |
remuneration and allowances to— |
| |
| |
(b) | staff of independent valuers, |
| |
(c) | appointing persons, and |
| 10 |
| |
| |
(a) | must provide for the appointment by the Treasury of a person to |
| |
monitor the operation of the arrangements for remuneration and |
| |
allowances for independent valuers; |
| 15 |
(b) | may require, or enable a compensation scheme order or third party |
| |
compensation order to require, the monitor’s approval before specified |
| |
things may be done in the course of those arrangements; |
| |
(c) | may include provision about records and accounts; |
| |
(d) | may make provision about numbers of staff and the terms and |
| 20 |
conditions of their appointment (which may include provision |
| |
requiring the approval of the Treasury or the monitor). |
| |
(3) | In subsection (1) a reference to the payment of allowances to a person includes |
| |
a reference to the payment to or in respect of the person of sums by way of or |
| |
| 25 |
(4) | Independent valuers (and their staff) are not liable for damages in respect of |
| |
anything done in good faith for the purposes of or in connection with the |
| |
functions of the office (subject to section 8 of the Human Rights Act 1998). |
| |
(5) | An order under this section— |
| |
(a) | shall be made by statutory instrument, and |
| 30 |
(b) | shall be subject to annulment in pursuance of a resolution of either |
| |
| |
| |
(1) | A compensation scheme order may specify principles (“valuation principles”) |
| |
to be applied in determining the amount of compensation. |
| 35 |
(2) | Valuation principles may, in particular, require an independent valuer— |
| |
(a) | to apply, or not to apply, specified methods of valuation; |
| |
(b) | to assess values or average values at specified dates or over specified |
| |
| |
(c) | to take specified matters into account in a specified manner; |
| 40 |
(d) | not to take specified matters into account. |
| |
(3) | In determining an amount of compensation (whether or not in accordance with |
| |
valuation principles) an independent valuer must disregard actual or potential |
| |
financial assistance provided by the Bank of England or the Treasury |
| |
| |
| |
|
| |
| |
(disregarding ordinary market assistance offered by the Bank on its usual |
| |
| |
(4) | Valuation principles may require or permit an independent valuer to make |
| |
assumptions; such as, for example, that the bank— |
| |
(a) | has had a permission under Part 4 of the Financial Services and Markets |
| 5 |
Act 2000 (regulated activities) varied or cancelled, |
| |
(b) | is unable to continue as a going concern, |
| |
(c) | is in administration, or |
| |
| |
(5) | There is nothing to prevent the application of the valuation principles in an |
| 10 |
order from resulting in no compensation being payable to a transferor. |
| |
| |
(1) | A resolution fund order must include provision for determining— |
| |
(a) | who will be entitled to a share of the proceeds on disposal of things |
| |
| 15 |
(b) | the way in which the proceeds will be calculated, and |
| |
(c) | the way in which shares will be calculated. |
| |
(2) | Provision under subsection (1)(b) may, in particular, provide for proceeds to be |
| |
| |
(a) | amounts required for the repayment of loans from public funds or for |
| 20 |
other payments in respect of public financial assistance; |
| |
(b) | some or all of the administrative or other expenses incurred in |
| |
connection with the provisions of this Part. |
| |
(3) | A resolution fund order may include provision for— |
| |
(a) | an independent valuer to make a determination under the order (in |
| 25 |
which case sections 54(2) to (5), 55 and 56 shall apply); |
| |
(b) | valuation principles to be applied in making a determination (in which |
| |
case section 57(2) shall apply). |
| |
(4) | A resolution fund order may confer a discretionary function on— |
| |
(a) | a Minister of the Crown, |
| 30 |
| |
(c) | the Bank of England, or |
| |
(d) | any other specified person. |
| |
(5) | A resolution fund order may include provision for the determination of |
| |
disputes about the application of its provisions (whether by conferring |
| 35 |
jurisdiction on a court or tribunal or otherwise). |
| |
(6) | A resolution fund order may require the Bank of England in managing a bridge |
| |
bank to aim to maximise the proceeds available for distribution in accordance |
| |
with the order; and an order which includes a requirement must— |
| |
(a) | subserviate it to pursuit of the special resolution objectives and |
| 40 |
compliance with the code of practice under section 5, |
| |
(b) | specify its extent, and |
| |
(c) | include provision about how the Bank is to comply with it. |
| |
(7) | A resolution fund order may require the Treasury to ensure that a bank in |
| |
temporary public ownership in accordance with section 13(2) is managed with |
| 45 |
| |
| |
|
| |
| |
the aim of maximising the proceeds available for distribution in accordance |
| |
with the order; and an order which includes a requirement must— |
| |
(a) | subserviate it to pursuit of the special resolution objectives and |
| |
compliance with the code of practice under section 5, |
| |
(b) | specify its extent, and |
| 5 |
(c) | include provision about how the Treasury is to comply with it. |
| |
59 | Third party compensation: discretionary provision |
| |
(1) | A power or duty in this Part to make a third party compensation order is a |
| |
power or duty to make provision establishing a scheme for paying |
| |
compensation to persons other than a transferor. |
| 10 |
(2) | A third party compensation order may— |
| |
(a) | form part of a compensation scheme order or resolution fund order, or |
| |
| |
(3) | A third party compensation order may include provision for— |
| |
(a) | an independent valuer (in which case sections 54 to 56 shall apply); |
| 15 |
(b) | valuation principles (in which case section 57(2) to (5) shall apply). |
| |
60 | Third party compensation: mandatory provision |
| |
(1) | The Treasury may make regulations about third party compensation |
| |
arrangements in the case of partial property transfers. |
| |
(2) | In making regulations the Treasury shall, in particular, have regard to the |
| 20 |
desirability of ensuring that if a residual bank enters insolvency after transfer, |
| |
pre-transfer creditors do not receive less favourable treatment than they would |
| |
have received had it entered insolvency immediately before transfer. |
| |
| |
(a) | “residual bank” means a bank that is a transferor under a property |
| 25 |
| |
(b) | “pre-transfer creditor” means a person who— |
| |
(i) | is a creditor of a residual bank immediately before a property |
| |
transfer instrument takes effect, and |
| |
(ii) | satisfies conditions specified by the regulations, and |
| 30 |
(c) | the reference to insolvency includes a reference to (i) liquidation, (ii) |
| |
bank insolvency, (iii) administration, (iv) bank administration, (v) |
| |
receivership, (vi) a composition with creditors, and (vii) a scheme of |
| |
| |
| 35 |
(a) | require a compensation scheme order or a resolution fund order to |
| |
include a third party compensation order; |
| |
(b) | require a third party compensation order to include provision of a |
| |
specified kind or to specified effect; |
| |
(c) | make provision which is to be treated as forming part of a third party |
| 40 |
compensation order (whether (i) generally, (ii) only if applied, (iii) |
| |
unless disapplied, or (iv) subject to express modification). |
| |
(5) | Regulations may provide for whether compensation is to be paid, and if so |
| |
what amount is to be paid, to be determined by reference to any factors or |
| |
| |
| |
|
| |
| |
combination of factors; in particular, the regulations may provide for |
| |
| |
(a) | to depend in part upon the amounts which are or may be payable under |
| |
| |
(b) | to be contingent upon the occurrence or non-occurrence of specified |
| 5 |
| |
(c) | to be determined wholly or partly by an independent valuer (within the |
| |
meaning of sections 54 to 56) appointed in accordance with a |
| |
compensation scheme order or resolution fund order. |
| |
(6) | Regulations may make provision about payment including, in particular, |
| 10 |
| |
(a) | on account subject to terms and conditions; |
| |
| |
| |
(a) | shall be made by statutory instrument, and |
| 15 |
(b) | may not be made unless a draft has been laid before and approved by |
| |
resolution of each House of Parliament. |
| |
61 | Sources of compensation |
| |
(1) | This section applies to— |
| |
(a) | compensation scheme orders, |
| 20 |
(b) | resolution fund orders, |
| |
(c) | third party compensation orders, and |
| |
(d) | regulations under section 60. |
| |
(2) | An order or regulations may provide for compensation or other payments to |
| |
| 25 |
| |
(b) | the Financial Services Compensation Scheme, subject to section 214B of |
| |
the Financial Services and Markets Act 2000 (contribution to costs of |
| |
special resolution regime - inserted by section 168 below), or |
| |
(c) | any other specified person. |
| 30 |
| |
(1) | This section applies to— |
| |
(a) | compensation scheme orders, |
| |
(b) | resolution fund orders, and |
| |
(c) | third party compensation orders. |
| 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. |
| |
| |
| |
|
