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Banking Bill


Banking Bill
Part 7 — Miscellaneous

115

 

235     

Weekly return

Section 6 of the Bank Charter Act 1844 (Bank to produce weekly account) shall

cease to have effect.

236     

Information

(1)   

The Bank of England may disclose information that it thinks relevant to the

5

financial stability of—

(a)   

individual financial institutions, or

(b)   

one or more aspects of the financial systems of the United Kingdom.

(2)   

Information about the business or other affairs of a specified or identifiable

person may be disclosed under subsection (1) only to—

10

(a)   

the Treasury;

(b)   

the Financial Services Authority;

(c)   

the scheme manager of the Financial Services Compensation Scheme

(established under Part 15 of the Financial Services and Markets Act

2000);

15

(d)   

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 Financial Services Authority in relation to financial

stability;

(e)   

the European Central Bank.

20

(3)   

This section—

(a)   

overrides a contractual or other requirement to keep information in

confidence, and

(b)   

is without prejudice to any other power to disclose information.

237     

Bank of England Act 1946

25

Nothing in this Act affects the generality of section 4 of the Bank of England

Act 1946 (directions and relations with other banks).

Financial Services Authority

238     

Variation of permission

At the end of section 45(1)(c) of the Financial Services and Markets Act 2000

30

(variation of permission to carry on regulated activities) add “(whether of the

services of the authorised person or of the services of other authorised

persons)”.

239     

Functions

(1)   

A reference in an enactment to functions conferred on the Financial Services

35

Authority by or under the Financial Services and Markets Act 2000 (or any part

of it) includes a reference to functions conferred on the Authority by or under

this Act.

(2)   

A reference in an enactment to functions of the Financial Services Authority

includes a reference to functions conferred by or under this Act (irrespective of

40

 
 

Banking Bill
Part 7 — Miscellaneous

116

 

whether the enactment was passed or made before or after the commencement

of this Act).

(3)   

The Treasury may by order disapply subsection (1) or (2) to a specified extent;

and an order—

(a)   

shall be made by statutory instrument, and

5

(b)   

may not be made unless a draft has been laid before and approved by

resolution of each House of Parliament.

(4)   

At the end of section 1 of the Financial Services and Markets Act 2000 (the

Authority) add—

“(4)   

Section 239 of the Banking Act 2008 provides for references to functions

10

of the Authority (whether generally or under this Act) to include

references to functions conferred on the Authority by that Act (subject

to any order under that section).”

240     

Information

(1)   

The Financial Services Authority shall collect information that it thinks is or

15

may be relevant to the stability of—

(a)   

individual financial institutions, or

(b)   

one or more aspects of the financial systems of the United Kingdom.

(2)   

The Authority may perform its function under subsection (1) by the exercise of

the power in section 165 of the Financial Services and Markets Act 2000 (power

20

to require information - as qualified by section 239 above) or in any other way.

Central banks

241     

Financial assistance to building societies

(1)   

The Treasury may by order modify the Building Societies Act 1986 for the

purpose of facilitating, or in connection with, the provision of financial

25

assistance to building societies by—

(a)   

the Treasury,

(b)   

the Bank of England,

(c)   

another central bank of a Member State of the European Economic

Area, or

30

(d)   

the European Central Bank.

(2)   

An order may affect any provision of the Building Societies Act 1986 which

appears to the Treasury otherwise capable of preventing, impeding or affecting

the provision of financial assistance; including, in particular, provision—

(a)   

about the establishment, constitution or powers of building societies,

35

(b)   

restricting or otherwise dealing with raising funds or borrowing,

(c)   

restricting or otherwise dealing with what may be done by or in

relation to building societies,

(d)   

about security, or

(e)   

about the application of insolvency law or other legislation relating to

40

companies.

(3)   

An order—

(a)   

may disapply or modify a provision;

 
 

Banking Bill
Part 7 — Miscellaneous

117

 

(b)   

may (but need not) take the form of textual amendment.

(4)   

Incidental provision of an order (included in reliance on section 249(1)(c)) may,

in particular—

(a)   

impose conditions, limits or other restrictions on what may be done in

reliance on a provision of the order;

5

(b)   

confer a discretion on the Treasury, the Bank of England or another

person or class of person.

(5)   

Incidental or consequential provision of an order (included in reliance on

section 249(1)(c)) may disapply or modify an enactment, whether by textual

amendment or otherwise.

10

(6)   

An order—

(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.

(7)   

The Treasury may by order create exceptions to or otherwise modify the effect

15

of section 9B of the Building Societies Act 1986 (restriction on creation of

floating charges); and—

(a)   

the Treasury may make an order only if they think it is likely to help

building societies to use, give effect to or take advantage of financial

assistance of the kind specified in subsection (1),

20

(b)   

an order may have effect in relation to transactions between building

societies and persons not listed in subsection (1),

(c)   

an order shall be made by statutory instrument, and

(d)   

an order may not be made unless a draft has been laid before and

approved by resolution of each House of Parliament.

25

(8)   

In this section, “financial assistance” has the meaning given by section 247.

242     

Registration of charges

(1)   

Part 25 of the Companies Act 2006 (registration of charges) does not apply to a

charge if the person interested in it is—

(a)   

the Bank of England,

30

(b)   

the central bank of a country or territory outside the United Kingdom,

or

(c)   

the European Central Bank.

(2)   

The reference in subsection (1) to Part 25 of the Companies Act 2006 includes a

reference to—

35

(a)   

Part 12 of the Companies Act 1985 (which has effect until the

commencement of Part 25 of the 2006 Act),

(b)   

Part 13 of the Companies (Northern Ireland) Order 1986 (which has

effect until the commencement of Part 25 of the 2006 Act), and

(c)   

any provision about registration of charges made under section 1052 of

40

the Companies Act 2006 (overseas companies).

243     

Registration of charges: Scotland

(1)   

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

(2)   

In section 38 (creation of floating charges)—

 
 

Banking Bill
Part 7 — Miscellaneous

118

 

(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.”

5

(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

10

(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

15

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

20

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

25

central institution.”

(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

30

Kingdom, or

(c)   

the European Central Bank;”

Funds attached rule (Scotland)

244     

Abolition for cheques

(1)   

A reference to the “funds attached” rule is a reference to the rule of law in

35

Scotland by virtue of which a bill of exchange, when presented to the drawee

for payment, operates as an assignation of the sum for which it is drawn (or, if

the drawee holds insufficient funds, of those funds) in favour of the holder of

the bill.

(2)   

The “funds attached” rule is abolished for cheques presented for payment after

40

the commencement of this section.

 
 

Banking Bill
Part 7 — Miscellaneous

119

 

(3)   

Expressions used in this section have the same meaning as in the Bills of

Exchange Act 1882.

(4)   

In that Act—

(a)   

in section 53(2) (funds in hands of drawee: Scotland)—

(i)   

the words “Subject to section 75A of this Act,” cease to have

5

effect, and

(ii)   

after “drawee of a bill” insert “other than a cheque”, and

(b)   

section 75A(countermanded cheques) ceases to have effect.

(5)   

Section 11 of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1985

(countermanded cheques) ceases to have effect.

10

Financial collateral arrangements

245     

Regulations

(1)   

The Treasury may make regulations about financial collateral arrangements.

(2)   

“Financial collateral arrangements” are arrangements under which financial

collateral is used as security in respect of a loan or other liability; and for that

15

purpose—

(a)   

collateral may be in cash, securities or any other form,

(b)   

use as security may involve transfer of the collateral or the creation or

transfer of any kind of right, interest or charge (fixed or floating) in

respect of it, and

20

(c)   

in particular, use as security can include use under arrangements of a

kind described commercially as “title transfer financial collateral

arrangements”.

(3)   

The regulations—

(a)   

may make any provision that the Treasury think necessary or desirable

25

for the purpose of, or in connection with, implementation of the

Financial Collateral Arrangements Directive (2002/47/EC) (or any

replacement), but

(b)   

are not restricted to provision required in connection with the

Directive, and may make any provision that the Treasury think

30

necessary or desirable for the purpose of enabling financial collateral

arrangements, whether or not with an international element, to be

commercially useful and effective.

(4)   

The regulations may, in particular—

(a)   

disapply or modify an enactment or rule of law about formalities or

35

evidence,

(b)   

disapply or modify an enactment about insolvency, administration,

receivership or any similar procedure,

(c)   

disapply or modify an enactment about property law,

(d)   

disapply or modify an enactment about companies or other commercial

40

entities or groupings,

(e)   

provide for provisions of financial collateral arrangements to have

effect despite a reorganisation, winding-up or other process affecting a

party to the arrangements,

(f)   

make provision for the enforcement of financial collateral

45

arrangements (which may include, in particular, provision—

 
 

Banking Bill
Part 8 — General

120

 

(i)   

about sale, appropriation and set-off,

(ii)   

about the use of collateral while subject to the arrangements,

(iii)   

about “close out netting arrangements”, under which

obligations under a number of contracts may be set off against

each other in the event of default under a specified contract,

5

(iv)   

permitting a person to foreclose or exercise another right under

the arrangements with or without an order of a court,

(v)   

permitting or requiring the disclosure of information, and

(vi)   

for enforcement after the commencement of, and despite,

reorganisation, winding-up or another process),

10

(g)   

make provision for the choice of law according to which, or under

which, matters arising under financial collateral arrangements are to be

determined, and

(h)   

apply to persons whether or not provisions of the Directive apply to

them.

15

(5)   

The regulations may, in particular—

(a)   

do anything done or purported to be done by the Financial Collateral

Arrangements (No. 2) Regulations 2003,

(b)   

provide for those regulations, or a specified provision, to be treated as

having had effect despite any lack of vires,

20

(c)   

provide for anything done under or in reliance on those regulations to

be treated as having had effect despite any lack of vires, and

(d)   

make any provision which the Treasury think necessary or desirable to

achieve or restore certainty and stability in connection with the matters

to which those regulations relate.

25

246     

Supplemental

(1)   

Regulations under section 245

(a)   

shall be made by statutory instrument, and

(b)   

shall lapse unless approved by resolution of each House of Parliament

during the period of 28 days (ignoring periods of dissolution,

30

prorogation or adjournment of either House for more than 4 days)

beginning with the day on which the regulations are made.

(2)   

The lapse of regulations under subsection (1)(b)—

(a)   

does not invalidate anything done under or in reliance on the

regulations before the lapse and at a time when neither House has

35

declined to approve the regulations, and

(b)   

does not prevent the making of new regulations.

Part 8

General

247     

“Financial assistance”

40

(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

 
 

Banking Bill
Part 8 — General

121

 

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

(b)   

shall be subject to annulment in pursuance of a resolution of either

5

House of Parliament.

248     

“Enactment”

In this Act “enactment” includes—

(a)   

subordinate legislation,

(b)   

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

10

Scottish Parliament, and

(c)   

Northern Ireland legislation.

249     

Statutory instruments

(1)   

A statutory instrument under this Act—

(a)   

may make provision that applies generally or only for specified

15

purposes, cases or circumstances,

(b)   

may make different provision for different purposes, cases or

circumstances, and

(c)   

may include incidental, consequential or transitional provision.

(2)   

No statutory instrument under this Act shall be treated as a hybrid instrument

20

under Standing Orders of either House of Parliament.

(3)   

The Table lists the powers to make statutory instruments under this Act and

the arrangements for Parliamentary scrutiny in each case (which are subject to

subsections (4) to (6)).

 

Section

Topic

Parliamentary scrutiny

 

25

 

PART 1 - Special resolution regime

 
 

2

Meaning of “bank”

Draft affirmative resolution

 
 

25

Share transfer orders

Negative resolution

 
 

47

Partial transfers

Draft affirmative resolution

 
 

48

Protection of interests

Draft affirmative resolution

 

30

 

55

Independent valuer

Negative resolution

 
 

56

Independent valuer: money

Negative resolution

 
 

60

Third party compensation

Draft affirmative resolution

 
 

62

Compensation orders

Draft affirmative resolution

 
 

72

Transfers: enforcement

Negative resolution

 

35

 

74

Tax

Negative resolution

 
   

(Commons only)

 
 
 

 
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