Establishment of mechanisms
134Duty to establish mechanisms for providing financial assistance
(1)Monitor must establish, and secure the effective operation of, one or more mechanisms for providing financial assistance in cases where a provider of health care services for the purposes of the NHS (referred to in this Chapter as a “provider”) is subject to—
(a)a health special administration order (within the meaning of Chapter 5), or
(b)an order under section 65D(2) of the National Health Service Act 2006 (trust special administration for NHS foundation trusts).
(2)Mechanisms that Monitor may establish under this section include, in particular—
(a)mechanisms for raising money to make grants or loans or to make payments in consequence of indemnities given by Monitor by virtue of section 132 or under section 65D(12) of the National Health Service Act 2006;
(b)mechanisms for securing that providers arrange, or are provided with, insurance facilities.
(3)Monitor may secure that a mechanism established under this section operates so as to enable it to recover the costs it incurs in establishing and operating the mechanism.
(4)Monitor may establish different mechanisms for different providers or providers of different descriptions.
(5)Monitor does not require permission under any provision of the Financial Services and Markets Act 2000 as respects activities carried out under this Chapter.
(6)An order under section 306 providing for the commencement of this Chapter may require Monitor to comply with the duty to establish under subsection (1) before such date as the order specifies.
135Power to establish fund
(1)Monitor may, for the purposes of section 134, establish and maintain a fund.
(2)In order to raise money for investment in a fund it establishes under this section, Monitor may impose requirements on providers or commissioners.
(3)Monitor must appoint at least two managers for a fund it establishes under this section.
(4)A manager of a fund may be an individual, a firm or a body corporate.
(5)Monitor must not appoint an individual as manager of a fund unless it is satisfied that the individual has the appropriate knowledge and experience for managing investments.
(6)Monitor must not appoint a firm or body corporate as manager of a fund unless it is satisfied that arrangements are in place to secure that any individual who will exercise functions of the firm or body corporate as manager will, at the time of doing so, have the appropriate knowledge and experience for managing investments.
(7)Monitor must not appoint an individual, firm or body corporate as manager of a fund unless the individual, firm or body is an authorised or exempt person within the meaning of the Financial Services and Markets Act 2000.
(8)Monitor must secure the prudent management of any fund it establishes under this section.