Financial Services (Banking Reform) Act 2013

PART 3 Bail-in stabilisation option

17 Bail-in stabilisation option

(1) Schedule 2 (which contains amendments relating to a new stabilisation option in Part 1 of the Banking Act 2009) has effect.

(2) The Treasury may by order make any provision they consider appropriate in consequence of the application to building societies of the amendments made by this Part.

(3) An order may, in particular—

(a) enable the Bank of England, for the purpose of enabling it to exercise in relation to the business of a building society any of the powers exercisable as a result of the amendments made by this Part—

(i) to convert the building society into a company, or

(ii) to transfer the business of the building society to a company which immediately before the transfer is owned by the Bank or by a person of a description specified in the order;

(b) enable the Bank of England, in connection with the exercise of a power conferred by virtue of paragraph (a), to cancel membership rights or shares in the building society;

(c) provide for any power exercisable as a result of the amendments made by this Part to be exercisable in relation to the company—

(i) into which the building society is converted, or

(ii) to which the business of the building society is transferred;

(d) enable the Bank of England, in a case where it has transferred the business of a building society by virtue of paragraph (a)(ii), to dissolve the building society at any time after the transfer;

(e) confer functions on the Treasury, the Bank of England, the FCA, the PRA or a bail-in administrator;

(f) make further amendments of Part 1 of the Banking Act 2009;

(g) amend or modify the effect of the Building Societies Act 1986 or any other enactment to which this subsection applies.

(4) Subsection (3) applies to any enactment (including a fiscal enactment) passed or made—

(a) before the passing of this Act, or

(b) on or before the last day of the Session in which this Act is passed.

(5) In this section—

• “bail-in administrator” is to be read in accordance with section 12B of the Banking Act 2009 (as inserted by paragraph 2 of Schedule 2);

• “building society” has the same meaning as in section 84 of the Banking Act 2009;

• “company” means a company as defined in section 1(1) of the Companies Act 2006 which is a public company limited by shares.