Banking Act 2009

68 Continuity obligations: onward share transfers

(1) In this section “onward transfer” means a transfer (whether or not under a power in this Part) of securities issued by a bank where—

(a) securities issued by the bank were earlier transferred by share transfer order under section 13(2), or

(b) the bank was the transferee under a property transfer instrument under section 12(2).

(2) The continuity authority may—

(a) provide for an obligation under section 66 to apply in respect of the bank after the onward transfer;

(b) extend section 67 so as to permit action to be taken under section 67(2) to enable the bank to operate effectively after the onward transfer.

(3) In this section “continuity authority” has the same meaning as in sections 66 and 67.

(4) Subsection (2) may be relied on to impose obligations on—

(a) the bank,

(b) anything which is or was a group undertaking (within the meaning of section 1161(5) of the Companies Act 2006) of the bank,

(c) anything which is or was a group undertaking of the residual bank (in a case to which subsection (1)(b) applies), or

(d) any combination.

(5) Subsection (2) may be used to impose obligations—

(a) in addition to obligations under or by virtue of section 66 or 67, or

(b) replacing obligations under or by virtue of either of those sections to a specified extent.

(6) A power under subsection (2) is exerciseable by giving a notice to each person—

(a) on whom a continuity obligation is to be imposed under the power, or

(b) who is expected to benefit from a continuity obligation under the power.

(7) Sections 66(3) to (7) and 67(3) and (4) apply to an obligation as applied under subsection (2) with any necessary modification.

(8) The Bank of England may act under or by virtue of subsection (2) only with the consent of the Treasury.