Banking Act 2009

Enforcement

193 Inspection

(1) The Bank of England may appoint one or more persons to inspect the operation of a recognised inter-bank payment system.

(2) The operator of a recognised inter-bank payment system must—

(a) grant an inspector access, on request and at any reasonable time, to premises on or from which any part of the system is operated, and

(b) otherwise co-operate with an inspector.

194 Inspection: warrant

(1) A justice of the peace may on the application of an inspector issue a warrant entitling an inspector or a constable to enter premises if—

(a) any part of the management or operation of a recognised inter-bank payment system is conducted on the premises (whether by an operator of the system or by someone providing services used by an operator), and

(b) any of the following conditions is satisfied.

(2) Condition 1 is that—

(a) a requirement under section 204 in connection with the payment system has not been complied with, and

(b) there is reason to believe that information relevant to the requirement is on the premises.

(3) Condition 2 is that there is reason to suspect that if a requirement under section 204 were imposed in connection with the payment system in respect of information on the premises—

(a) the requirement would not be complied with, and

(b) the information would be destroyed or otherwise tampered with.

(4) Condition 3 is that an inspector—

(a) gave reasonable notice of a wish to enter the premises, and

(b) was refused entry.

(5) Condition 4 is that a person occupying or managing the premises has failed to co-operate with an inspector.

(6) A warrant—

(a) permits an inspector or a constable to enter the premises,

(b) permits an inspector or a constable to search the premises and copy or take possession of information or documents, and

(c) permits a constable to use reasonable force.

(7) Sections 15(5) to (8) and 16 of the Police and Criminal Evidence Act 1984 (warrants: procedure) apply to warrants under this section.

(8) In the application of this section to Scotland—

(a) the reference to a justice of the peace includes a reference to a sheriff, and

(b) ignore subsection (7).

(9) In the application of this section to Northern Ireland—

(a) the reference to a justice of the peace is a reference to a lay magistrate, and

(b) the reference to sections 15(5) to (8) and 16 of the Police and Criminal Evidence Act 1984 is a reference to the equivalent provisions of the Police and Criminal Evidence (Northern Ireland) Order 1989.

195 Independent report

(1) The Bank of England may require the operator of a recognised inter-bank payment system to appoint an expert to report on the operation of the system.

(2) The Bank may impose a requirement only if it thinks—

(a) the operator is not taking sufficient account of principles published by the Bank under section 188,

(b) the operator is failing to comply with a code of practice under section 189, or

(c) the report is likely for any other reason to assist the Bank in the performance of its functions under this Part.

(3) The Bank may impose requirements about—

(a) the nature of the expert to be appointed;

(b) the content of the report;

(c) treatment of the report (including disclosure and publication);

(d) timing.

196 Compliance failure

In this Part “compliance failure” means a failure by the operator of a recognised inter-bank payment system to—

(a) comply with a code of practice under section 189,

(b) comply with a requirement under section 190,

(c) comply with a direction under section 191, or

(d) ensure compliance with a requirement under section 195.

197 Publication

(1) The Bank of England may publish details of a compliance failure by the operator of a recognised inter-bank payment system.

(2) The Bank may publish details of a sanction imposed under sections 198 to 200.

198 Penalty

(1) The Bank of England may require the operator of a recognised inter-bank payment system to pay a penalty in respect of a compliance failure.

(2) A penalty—

(a) must be paid to the Bank of England, and

(b) may be enforced by the Bank as a debt.

(3) The Bank must prepare a statement of the principles which it will apply in determining—

(a) whether to impose a penalty, and

(b) the amount of a penalty.

(4) The Bank must—

(a) publish the statement on its internet website,

(b) send a copy to the Treasury,

(c) review the statement from time to time and revise it if necessary (and paragraphs (a) and (b) apply to a revision), and

(d) in applying the statement to a compliance failure, apply the version in force when the failure occurred.

199 Closure

(1) This section applies if the Bank of England thinks that a compliance failure—

(a) threatens the stability of, or confidence in, the UK financial system, or

(b) has serious consequences for business or other interests throughout the United Kingdom.

(2) The Bank may give the operator of the inter-bank payment system concerned an order to stop operating the system (a “closure order”)—

(a) for a specified period,

(b) until further notice, or

(c) permanently.

(3) A closure order may apply to—

(a) all activities of the payment system, or

(b) specified activities.

(4) An operator who fails to comply with a closure order commits an offence.

(5) A person guilty of an offence is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum, or

(b) on conviction on indictment, to a fine.

200 Management disqualification

(1) The Bank of England may by order prohibit a specified person from being an operator of a recognised inter-bank payment system—

(a) for a specified period,

(b) until further notice, or

(c) permanently.

(2) The Bank may by order prohibit a specified person from holding an office or position involving responsibility for taking decisions about the management of a recognised inter-bank payment system—

(a) for a specified period,

(b) until further notice, or

(c) permanently.

(3) A person who breaches a prohibition under subsection (1) or (2) commits an offence.

(4) A person guilty of an offence is liable—

(a) on summary conviction, to a fine not exceeding the statutory maximum, or

(b) on conviction on indictment, to a fine.

201 Warning

(1) Before imposing a sanction on the operator of an inter-bank payment system or on another person the Bank of England must—

(a) give the operator or other person a notice (a “warning notice”),

(b) give the operator or other person at least 21 days to make representations,

(c) consider any representations made, and

(d) as soon as is reasonably practicable, give the operator or other person a notice stating whether or not the Bank intends to impose the sanction.

(2) In subsection (1) “imposing a sanction” means—

(a) publishing details under section 197(1),

(b) requiring the payment of a penalty under section 198,

(c) giving a closure order under section 199, or

(d) making an order under section 200.

(3) Despite subsection (1), if satisfied that it is necessary the Bank may without notice—

(a) give a closure order under section 199, or

(b) make an order under section 200.

202 Appeal

(1) Where the Bank of England notifies a person under section 201(1)(d) that the Bank intends to impose a sanction, the person may appeal to the Financial Services and Markets Tribunal.

(2) Where the Bank of England imposes a sanction on a person without notice in reliance on section 201(3), the person may appeal to the Financial Services and Markets Tribunal.

(3) Part 9 of the Financial Services and Markets Act 2000 applies to appeals under this section; and for that purpose—

(a) a reference to the FSA is to be taken as a reference to the Bank of England,

(b) for section 133(9) of that Act substitute the proposition that a sanction may not be imposed while an appeal could be brought or is pending.

(c) Part 9 is to be read with any other necessary modifications.