Banking Bill
EXPLANATORY NOTES
Explanatory notes to the Bill, prepared by the Treasury, are published separately as
Bill 6—EN
EUROPEAN CONVENTION ON HUMAN RIGHTS
Mr Chancellor of the Exchequer has made the following statement under section
19(1)(a) of the Human Rights Act 1998:
In my view the provisions of the Banking Bill are compatible with the Convention
rights.
Contents
Part 1
Special Resolution Regime
Introduction
1
Overview
2
Interpretation: “bank”
3
Interpretation: other expressions
Objectives and code
4
Special resolution objectives
5
Code of practice
6
Code of practice: procedure
Exercise of powers: general
7
General conditions
8
Specific conditions: private sector purchaser and bridge bank
9
Specific conditions: temporary public ownership
10
Banking Liaison Panel
The stabilisation options
11
Private sector purchaser
12
Bridge bank
13
Temporary public ownership
Transfer of securities
14
Interpretation: “securities”
15
Share transfer instrument
16
Share transfer order
17
Effect
18
Continuity
19
Conversion and delisting
20
Directors
Bill 6
54/4
ii
21
Ancillary instruments: production, registration, &c.
22
Termination rights, &c.
23
Incidental provision
24
Procedure: instruments
25
Procedure: orders
26
Supplemental instruments
27
Supplemental orders
28
Onward transfer
29
Reverse share transfer
30
Bridge bank: share transfers
31
Bridge bank: reverse share transfer
32
Interpretation: general
Transfer of property
33
Property transfer instrument
34
35
Transferable property
36
37
Licences
38
39
Foreign property
40
41
Procedure
42
43
44
Reverse property transfer
45
Temporary public ownership: property transfer
46
Temporary public ownership: reverse property transfer
47
Restriction of partial transfers
48
Power to protect certain interests
Compensation
49
Orders
50
Sale to private sector purchaser
51
Transfer to temporary public ownership
52
Transfer to bridge bank
53
Onward and reverse transfers
54
Independent valuer
55
Independent valuer: supplemental
56
Independent valuer: money
57
Valuation principles
58
Resolution fund
59
Third party compensation: discretionary provision
60
Third party compensation: mandatory provision
61
Sources of compensation
62
Incidental functions
63
General continuity obligation: property transfers
64
Special continuity obligations: property transfers
65
Continuity obligations: onward property transfers
iii
66
General continuity obligation: share transfers
67
Special continuity obligations: share transfers
68
Continuity obligations: onward share transfers
69
Continuity obligations: consideration and terms
70
Continuity obligations: termination
71
Pensions
72
Enforcement
73
Disputes
74
Tax
75
Power to change law
Treasury
76
International obligation notice: general
77
International obligation notice: bridge bank
78
Public funds: general
79
Public funds: bridge bank
80
Bridge bank: report
Building societies, &c.
81
Application of Part 1: general
82
83
Distribution of assets on dissolution or winding up
84
Interpretation
85
Consequential provision
86
Credit unions
Part 2
Bank Insolvency
87
88
89
Interpretation: “the court”
90
Bank insolvency order
91
The order
92
Application
93
Grounds for applying
94
Grounds for making
95
Commencement
Process of bank liquidation
96
Objectives
97
Liquidation committee
98
Liquidation committee: supplemental
99
Objective 1: (a) or (b)?
100
General powers, duties and effect
iv
101
Additional general powers
102
Status of bank liquidator
Tenure of bank liquidator
103
Term of appointment
104
Resignation
105
Removal by court
106
Removal by creditors
107
Disqualification
108
Release
109
Replacement
Termination of process, &c.
110
Company voluntary arrangement
111
Administration
112
Dissolution
113
Dissolution: supplemental
Other processes
114
Bank insolvency as alternative order
115
Voluntary winding-up
116
Exclusion of other procedures
117
Notice to FSA of preliminary steps
118
Disqualification of directors
119
Application of insolvency law
Miscellaneous
120
Role of FSCS
121
Transfer of accounts
122
Rules
123
Fees
124
Insolvency Services Account
125
Evidence
126
Co-operation between courts
127
Building societies
128
129
Partnerships
130
Scottish partnerships
131
Northern Ireland
132
Part 3
Bank Administration
133
134
135
Objective 1: supporting private sector purchaser or bridge bank
v
136
Objective 1: duration
137
Objective 2: “normal” administration
Process
138
Bank administration order
139
140
141
142
143
Status of bank administrator
144
Administrator’s proposals
145
Sharing information
Multiple transfers
146
General application of this Part
147
Bridge bank to private purchaser
148
Property transfer from bridge bank
149
Property transfer from temporary public ownership
Termination
150
Successful rescue
151
Winding-up or voluntary arrangement
152
153
Application of other law
154
155
156
157
158
159
160
161
162
163
164
165
Part 4
Financial Services Compensation Scheme
166
167
Contingency funding
168
Special resolution regime
169
Investing in National Loans Fund
170
Borrowing from National Loans Fund
171
Procedure for claims
172
Rights in insolvency