2023 No. 319
The Amendments of the Law (Resolution of Silicon Valley Bank UK Limited) Order 2023
Approved by both Houses of Parliament
Made
Coming into force
Laid before Parliamentat 3.30 p.m. on 13th March 2023
This Order is made in exercise of the powers conferred by section 75 of the Banking Act 20091.
This Order is made for the purpose of enabling the powers under Part 1 of that Act to be used effectively in connection with the sale of Silicon Valley Bank UK Limited to a private sector purchaser (HSBC UK Bank plc).
In accordance with section 75(1) of that Act, the Treasury have had regard to the special resolution objectives.
In accordance with section 75(8) of that Act, the Treasury think it necessary to make this Order without a draft of it having been approved by a resolution of each House of Parliament.
Accordingly, the Treasury make the following Order.
Citation, commencement, extent and interpretationI11
1
This Order may be cited as the Amendments of the Law (Resolution of Silicon Valley Bank UK Limited) Order 2023.
2
This Order comes into force on 13th March 2023 at 8.00 a.m.
3
This Order extends to the United Kingdom.
4
In this Order—
“FSMA” means the Financial Services and Markets Act 20002;
F1“group” has the meaning given by section 421 of FSMA;
F2...
“HSBC UK Bank plc” means the company F3incorporated on 23rd December 2015 with the company registered number 09928412;
“Silicon Valley Bank UK Limited” means the company F4incorporated on 3rd April 2020 with the company registered number 12546585;
F5“undertaking” has the meaning given by section 1161 of the Companies Act 2006.
Modification of the Financial Services and Markets Act 2000 (Excluded Activities and Prohibitions) Order 2014I22
1
Article 14(4) of the Financial Services and Markets Act 2000 (Excluded Activities and Prohibitions) Order 20144 (prohibitions: financial institution exposures) is to have effect with the modification set out in paragraph (2) in relation to exposures incurred by HSBC UK Bank plc where Silicon Valley Bank UK Limited is the relevant financial institution.
2
Paragraph (b)(i) is to be read as if the words “conducted on arm’s length terms” were omitted.
Modification of the FCA’s and PRA’s rule-making powersI33
1
Sections 137A(1), 137G(1) and 192XA(1) of FSMA5 (the FCA’s general rules, the PRA’s general rules and PRA rules applying to holding companies) have effect as if modified by inserting at the end of F6each provision—
or for the purposes of, to facilitate, or in consequence of, the Silicon Valley Bank UK Limited Mandatory Reduction and Share Transfer Instrument 2023.
2
Section 138A of FSMA6 (modification or waiver of rules) is modified so it F7also applies in relation to F8HSBC UK Bank plc and any undertaking in its group—
a
in the absence of an application by F9HSBC UK Bank plc or the relevant undertaking in its group;
b
without any requirement for consent by F10HSBC UK Bank plc or the relevant undertaking in its group;
c
without the requirement that the regulator be satisfied about the matters referred to in subsection (4); and
d
subject instead to the condition that it appears to the regulator that modification or waiver (as the case may be) is necessary for the purposes of, to facilitate, or in consequence of, the Silicon Valley Bank UK Limited Mandatory Reduction and Share Transfer Instrument 2023.
Modification of the FCA’s and PRA’s duties to consult on rule changesI44
1
Sections 138I(1)(b) and (2) to (5), 138J(1)(b) and (2) to (5), 138K, 144D and 144E(6) of FSMA7 (consultation by the FCA and PRA) do not apply in relation to rules made by the FCA or the PRA (as the case may be) if the rules are for the purposes of, to facilitate, or in consequence of, the Silicon Valley Bank UK Limited Mandatory Reduction and Share Transfer Instrument 2023.
2
Section 139A(5) of FSMA8 (power of the FCA to give guidance) has effect as if modified by inserting after “(consultation)”—
as modified by article 4(1) of the Amendments of the Law (Resolution of Silicon Valley Bank UK Limited) Order 2023
(This note is not part of the Order)