C3C4C5C6 Part XV The Financial Services Compensation Scheme

Annotations:
Modifications etc. (not altering text)
C4

Pt. 15 modified (29.9.2008 at 8.00 a.m.) by The Bradford & Bingley plc Transfer of Securities and Property etc. Order 2008 (S.I. 2008/2546), art. 29 (with art. 30(6))

C5

Pt. 15 modified (7.10.2008 at 9.30 a.m.) by The Heritable Bank plc Transfer of Certain Rights and Liabilities Order 2008 (S.I. 2008/2644), art. 14 (with art. 15(8)

C6

Pt. 15 modified (8.10.2008 at 12.15 p.m.) by The Kaupthing Singer & Friedlander Limited Transfer of Certain Rights and Liabilities Order 2008 (S.I. 2008/2674), art. 15 (with art. 16(8))

Provisions of the scheme

C1C2C7214BF2F1Contribution to costs of special resolution regime

1

This section applies if—

a

a stabilisation power under Part 1 of the Banking Act 2009 has been exercised in respect of a bank, building society F3, credit union or investment firm within the meaning of that Part (“the institution”); and

b

the Treasury think that the institution was or was likely to have been, or but for the exercise of the power would have become, unable to satisfy claims against it.

2

The Treasury may require the scheme manager to make payments (to the Treasury or any other person) in respect of expenses of a prescribed description incurred (by the Treasury or that person) in connection with the exercise of the power.

3

Subsection (2) is subject to section 214C (limit on amount of special resolution regime payments).

4

In subsection (2) “expenses” includes interest at a specified rate on the difference, at any time, between—

a

the total amount of expenses (including interest) incurred at or before that time; and

b

the total amount recovered, or received from the scheme manager, in respect of the institution, at or before that time, by—

i

the Treasury; and

ii

any other person who has incurred expenses in connection with the exercise of the power that are of a description prescribed under subsection (2).

5

Any payment made by the scheme manager under subsection (2) is to be treated for the purposes of this Part as an expense under the compensation scheme.

6

In this section and section 214C “specified rate” means a rate specified by the Treasury.

7

Different rates may be specified under different provisions or for different periods.

8

A rate may be specified by reference to a rate set (from time to time) by any person.