106BRing-fencing transfer scheme

1

A scheme is a ring-fencing transfer scheme if it—

a

is one under which the whole or part of the business carried on—

i

by a UK authorised person, or

ii

by a qualifying body,

is to be transferred to another body (“the transferee”),

b

is to be made for one or more of the purposes mentioned in subsection (3), and

c

is not an excluded scheme or an insurance business transfer scheme.

2

“Qualifying body” means a body which—

a

is incorporated in the United Kingdom,

b

is a member of the group of a UK authorised person, and

c

is not itself an authorised person.

3

The purposes are—

a

enabling a UK authorised person to carry on core activities as a ring-fenced body in compliance with the ring-fencing provisions;

b

enabling the transferee to carry on core activities as a ring-fenced body in compliance with the ring-fencing provisions;

c

making provision in connection with the implementation of proposals that would involve a body corporate whose group includes the body corporate to whose business the scheme relates becoming a ring-fenced body while one or more other members of its group are not ring-fenced bodies;

d

making provision in connection with the implementation of proposals that would involve a body corporate whose group includes the transferee becoming a ring-fenced body while one or more other members of the transferee’s group are not ring-fenced bodies.

4

A scheme is an excluded scheme for the purposes of this section if—

a

the body to whose business the scheme relates is a building society or credit union, or

b

the scheme is a compromise or arrangement to which Part 27 of the Companies Act 2006 (mergers and divisions of public companies) applies.

5

For the purposes of subsection (1)(a) it is immaterial whether or not the business to be transferred is carried on in the United Kingdom.

6

“UK authorised person” has the same meaning as in section 105.

7

“Building society” and “credit union” have the same meanings as in section 106.

8

“The ring-fencing provisions” means ring-fencing rules and the duty imposed as a result of section 142G.