Section 223: Termination of right to issue
496.Subsections (1) to (4) confer a power on the Treasury, following consultation with the Bank of England, to terminate an authorised bank’s note-issuing rights if:
the bank has failed to comply with the banknote regulations or rules; and
having regard to the nature of that failure, the bank should no longer be permitted to issue banknotes.
497.Subsection (5) provides that an authorised bank loses the right to issue notes if it ceases to have permission under Part 4 of the Financial Services and Markets Act 2000 to carry out the regulated activity of accepting deposits.
498.Subsection (6) provides that the reference in subsection (5) to Part IV of the Financial Services and Markets Act 2000 includes a reference to a law of a foreign country that the Treasury may identify in banknote regulations as serving a similar purpose.
499.Subsection (7) provides that transitional provision in the banknote regulations may include provision for a case where a bank loses the right to issue notes.
