PART 4 U.K.Collaboration between Treasury and Bank of England, FCA or PRA

58 Duty of Bank to notify Treasury of possible need for public funds U.K.

(1) Where it appears to the Bank of England that there is a material risk of circumstances within any of the following cases arising, the Bank must immediately notify the Treasury.

(2) A notification under subsection (1) or section 59(2) is referred to in this Part as a “public funds notification”.

(3) The first case is where the Treasury or the Secretary of State might reasonably be expected to regard it as appropriate to provide financial assistance to or in respect of a financial institution.

(4) The second case is where—

(a) the Treasury, the Bank of England, the PRA, the FCA or the Secretary of State might reasonably be expected to regard it as appropriate to exercise any of their respective powers under Parts 1 to 3 of the Banking Act 2009 [F1 or under Schedule 11 to the Financial Services and Markets Act 2023], and

(b) the Treasury might reasonably be expected to regard it as appropriate to incur expenditure in connection with the exercise of any of those powers (whether by the Treasury, the Bank, the PRA, the FCA or the Secretary of State).

(5) The third case is where the scheme manager of the Financial Services Compensation Scheme [F2 or any scheme established under paragraph 87 of Schedule 11 to the Financial Services and Markets Act 2023] might reasonably be expected to request—

(a) a loan from the National Loans Fund under section 223B of FSMA 2000, or

(b) financial assistance from the Treasury,

for the purpose of funding expenses incurred or expected to be incurred under the Financial Services Compensation Scheme [F3 or any scheme established under paragraph 87 of Schedule 11 to the Financial Services and Markets Act 2023].

(6) A public funds notification must give a general indication of the matters giving rise to the notification.

(7) A public funds notification must be given or confirmed in writing.

Textual Amendments

F1 Words in s. 58(4) inserted (31.12.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 11 para. 163(3)(a); S.I. 2023/1382, reg. 8(b)

F2 Words in s. 58(5) inserted (31.12.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 11 para. 163(3)(b)(i); S.I. 2023/1382, reg. 8(b)

F3 Words in s. 58(5) inserted (31.12.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 11 para. 163(3)(b)(ii); S.I. 2023/1382, reg. 8(b)

Commencement Information

I1 S. 58 in force at 1.4.2013 by S.I. 2013/423, art. 3, Sch.