The Bank Administration (Sharing Information) Regulations 2009

Citation and commencement

1.  These Regulations may be cited as the Bank Administration (Sharing Information) Regulations 2009 and come into force on 21st February 2009.

Interpretation

2.  In these Regulations—

“the Act” means the Banking Act 2009;

“HMRC” means Her Majesty’s Revenue and Customs;

“Objective 1” means the first objective of bank administration as defined in sections 137 and 138 of the Act;

“order” means a bank administration order (see section 141 of the Act);

“original bank” means a bank as it existed before a property transfer instrument was made in relation to it;

“residual bank”—

in Regulations 5 to 10, has the meaning given by section 157(2) of the Act;

in the Schedule, means a bank in temporary public ownership all or part of whose business has been transferred in accordance with a property transfer order made under section 45(2) of the Act;

“transferred business” —

(a)

in Regulations 5 to 10, means the part of an original bank’s business transferred under a property transfer instrument;

(b)

in the Schedule, means the part of the bank in temporary public ownership’s business transferred in accordance with a property transfer order made under section 45(2) of the Act.

Application to bank administration following transfer to a bridge bank

3.  Regulations 5 to 10 apply to bank administration following a transfer to a bridge bank in accordance with sections 12 and 148(1) of the Act.

Application to bank administration where Part 3 is applied by section 152 of the Act

4.—(1) Regulations 5 to 10 apply, with the modifications specified in Tables 1 and 2 of the Schedule, to bank administration following a transfer of business from a bank in temporary public ownership (1).

(2) Table 1 applies in cases where section 148 is applied following a transfer from a bank in temporary public ownership to a company wholly owned by the Bank of England(2).

(3) Table 2 applies in cases where section 148 is applied following a transfer from a bank in temporary public ownership to a company wholly owned by the Treasury or a nominee of the Treasury.

Information to be provided to the bank administrator appointed in the first 5 days of the bank administration

5.—(1) This regulation applies where—

(a) the bank administrator has been appointed by the order, or

(b) the bank administrator has been appointed to replace the bank administrator appointed by the order (or where joint administrators were appointed, to replace all of them) within 5 days of the order being made.

(2) The classes of information that must be provided by the Bank of England to the bank administrator under section 148(2) of the Act, within the period of 5 days beginning with the day on which the bank administrator is appointed, are——

(a) an estimate of the net value of the original bank,

(b) an estimate of the net value of the bridge bank,

(c) a list of assets and liabilities of the original bank that have been transferred to the bridge bank, including details of —

(i) any charged assets and the creditors holding those charges,

(ii) any contingent assets transferred to the bridge bank, and

(iii) any liabilities (including contingent liabilities), and

(d) details of any supplemental property transfers or reverse property transfers that have been made,

in each case as comprehensive as is reasonably possible and current as at the date it is provided.

Information to be provided to the bank administrator otherwise

6.—(1) This regulation applies where the bank administrator has been appointed otherwise than as described in regulation 5(1).

(2) The classes of information that must be provided by the Bank of England to the bank administrator under section 148(2) of the Act, within the period of 5 days beginning with the day on which the bank administrator is appointed, are—

(a) details of the net value of the bridge bank, current as at the date on which the information is provided, and

(b) an outline of the information provided to a former bank administrator under section 148(2) of the Act, and, where the matters to which that information relates have changed, updated information, current as at the date on which the information is provided.

Information to be provided on request by the bridge bank to the bank administrator

7.  The classes of information that must be provided by the bridge bank to the bank administrator on request under section 148(3) of the Act are—

(a) details as to the net value of the bridge bank, management accounts and other information including ledgers, cash books, bank statements, invoices and orders in relation to the transferred business current as at the date on which the information is provided,

(b) details of any supplemental property transfers or reverse property transfers that have been made, and

(c) details of any amounts of money to be paid to the residual bank from a scheme established by a resolution fund order.

Information to be provided on request by the bank administrator to the Bank of England

8.  The classes of information that must be provided by the bank administrator to the Bank of England on request under section 148(4)(a) of the Act are as follows—

(a) information required in connection with the Bank of England’s role under Part 3 of the Act and under rules made under section 411 of the Insolvency Act 1986(3) in respect of Part 3,

(b) information regarding the bank administrator’s plans for the administration of the residual bank, further to any information provided in the bank administrator’s statement of proposals, that may have an impact on the residual bank’s ability to meet Objective 1,

(c) information regarding the residual bank’s employees, assets and liabilities and its relationships with suppliers that may have an impact on the residual bank’s ability to meet Objective 1,

(d) information about—

(i) wrongful trading (see section 213 of the Insolvency Act 1986),

(ii) fraudulent trading (see section 214 of the Insolvency Act 1986), or

(iii) negligence,

carried out by the directors of the original bank and identified by the bank administrator,

(e) information about any steps taken by the bank administrator in respect of a director of the original bank under the Company Directors Disqualification Act 1986(4), and

(f) information about any litigation that the bank administrator is pursuing on behalf of the residual bank.

Information to be provided on request by the bank administrator to the bridge bank

9.  The classes of information that must be provided by the bank administrator to the bridge bank on request under section 148(4)(c) of the Act are—

(a) statutory accounts, management accounts and other information including ledgers, cash books, bank statements, invoices and orders in relation to the transferred business,

(b) the following information relating to the transferred business—

(i) financial information relating to property, rights and liabilities,

(ii) personnel records, salary information etc relating to employees, and

(iii) details of any licenses, permissions, approvals and intellectual property rights.

(c) information in relation to contracts, the rights and obligations of which have been transferred to the bridge bank,

(d) information required by public or regulatory bodies (in the United Kingdom and overseas) including FSA or HMRC,

(e) information about customers and suppliers which are part of the transferred business,

(f) information about target customers, channels to market, distribution networks and other marketing and sales material relating to the transferred business,

(g) information about the original bank’s previous trading history required to prepare an investment memorandum,

(h) any other information a potential purchaser asks the bridge bank to provide, and

(i) information in connection with any agreement drawn up between the bank administrator and the bridge bank for the supply by the residual bank of services and facilities to the bridge bank.

Records to be made accessible by the bank administrator

10.  The class of records that the bank administrator must allow the Bank of England and the bridge bank access to under section 148(4)(b) and (d) of the Act is any records required in connection with the classes of information specified in regulations 8 and 9, whether in hard copy or in electronic form.

Dave Watts

Steve MCabe

Two of the Lords Commissioners of Her Majesty’s Treasury

19th February 2009