Valid from 21/02/2009
(1)This section sets out the special resolution objectives.
(2)The relevant authorities shall have regard to the special resolution objectives in using, or considering the use of—
(a)the stabilisation powers,
(b)the bank insolvency procedure, or
(c)the bank administration procedure.
(3)For the purpose of this section the relevant authorities are—
(a)the Treasury,
(b)the FSA, and
(c)the Bank of England.
(4)Objective 1 is to protect and enhance the stability of the financial systems of the United Kingdom.
(5)Objective 2 is to protect and enhance public confidence in the stability of the banking systems of the United Kingdom.
(6)Objective 3 is to protect depositors.
(7)Objective 4 is to protect public funds.
(8)Objective 5 is to avoid interfering with property rights in contravention of a Convention right (within the meaning of the Human Rights Act 1998).
(9)In subsection (4), the reference to the stability of the financial systems of the United Kingdom includes, in particular, a reference to the continuity of banking services.
(10)The order in which the objectives are listed in this section is not significant; they are to be balanced as appropriate in each case.
(1)The Treasury shall issue a code of practice about the use of—
(a)the stabilisation powers,
(b)the bank insolvency procedure, and
(c)the bank administration procedure.
(2)The code may, in particular, provide guidance on—
(a)how the special resolution objectives are to be understood and achieved,
(b)the choice between different options,
(c)the information to be provided in the course of a consultation under this Part,
(d)the giving of advice by one relevant authority to another about whether, when and how the stabilisation powers are to be used,
(e)how to determine whether Condition 2 in section 7 is met,
(f)how to determine whether the test for the use of stabilisation powers in section 8 is satisfied,
(g)sections 63 and 66, and
(h)compensation.
(3)Sections 12 and 13 require the inclusion in the code of certain matters about bridge banks and temporary public ownership.
(4)The relevant authorities shall have regard to the code.
(5)For the purpose of this section the relevant authorities are—
(a)the Treasury,
(b)the FSA, and
(c)the Bank of England.
Commencement Information
I1S. 5 in force at 21.2.2009 in so far as not already in force by S.I. 2009/296, arts. 2, 3, Sch. para. 1
(1)Before issuing the code of practice the Treasury must consult—
(a)the FSA,
(b)the Bank of England, and
(c)the scheme manager of the Financial Services Compensation Scheme (established under Part 15 of the Financial Services and Markets Act 2000).
(2)As soon as is reasonably practicable after issuing the code of practice the Treasury shall lay a copy before Parliament.
(3)The Treasury may revise and re-issue the code of practice.
(4)Subsections (1) and (2) apply to re-issue as to the first issue.
Commencement Information
I2S. 6 in force at 21.2.2009 in so far as not already in force by S.I. 2009/296, arts. 2, 3, Sch. para. 1