The State Aid (EU Exit) Regulations 2019

Banking Act 2009

3.—(1) The Banking Act 2009(1) is amended as follows.

(2) In section 3(2)—

(a) in subsection (1), in the definition of “extraordinary public financial support”, for the words from “has” to the end, substitute—

“means—

(a)

public financial support that constitutes state aid, or

(b)

public financial support at supra-national level which, if provided at national level, would constitute state aid,

that is provided in order to preserve or restore the viability, liquidity or solvency of a bank, a banking group company or a group of which a bank forms part;”;

(b) before subsection (3), insert—

“(2D) In the definition of “extraordinary public financial support” the term “state aid” refers to aid which would (but for any relevant approval or exemption) be prohibited under Article 107(1) of the Treaty on the Functioning of the European Union, as that Article has effect in domestic law by virtue of section 4 of the European Union (Withdrawal) Act 2018 and regulation 3(1) and (2) of the State Aid (EU Exit) Regulations 2019.”.

(3) In section 145A(3)—

(a) in subsection (1)(b), for the words from “aid to which” to the end, substitute “State aid”;

(b) after subsection (1), insert—

“(1A) In this section, “State aid” means aid to which Article 107(1) or Article 108(3) of TFEU applies.”;

(c) in subsection (2)—

(i) omit “the United Kingdom to fulfil”;

(ii) after “subsection (3)”, insert “to be fulfilled”.

(d) in subsection (3)—

(i) in paragraph (a), for “European Commission”, substitute “CMA”;

(ii) in paragraph (b), for “Commission”, substitute “CMA”;

(iii) in paragraph (c), for the words from “is, or would” to the end, substitute “is not, or would not be, prohibited by Article 107(1) of TFEU;”;

(iv) in paragraph (d), for the words from “under” to the end, substitute “to be carried out for the purposes of Article 108(3) of TFEU;”;

(v) in paragraph (e), for “European Commission”, substitute “CMA”;

(vi) in paragraphs (f) and (g), for “Commission” in each place it occurs, substitute “CMA”;

(e) omit subsection (9);

(f) in subsection (10), for the words from “TFEU means” to the end, substitute—

“—

(a) “CMA” means the Competition and Markets Authority;

(b) “TFEU” means the Treaty on the Functioning of the European Union; and

(c) a reference to Article 107(1) or 108(3) of TFEU is a reference to that Article as it has effect in domestic law by virtue of section 4 of the European Union (Withdrawal) Act 2018 and regulation 3(1) and (2) of the State Aid (EU Exit) Regulations 2019.”.

(4) In section 256A(4)—

(a) in subsection (1)(a), for the words from “any of the” to “(“State aid”),” substitute “Article 107(1) or Article 108(3) of the Treaty on the Functioning of the European Union applies, as those Articles have effect in domestic law by virtue of section 4 of the European Union (Withdrawal) Act 2018 and regulation 3(1) and (2) of the State Aid (EU Exit) Regulations 2019,”;

(b) in subsection (2)—

(i) omit “the United Kingdom to pursue”;

(ii) for “(read with subsection (9) of that section)”, substitute “to be pursued”.

(1)

2009 c. 1.

(2)

Section 3 was amended by S.I. 2014/3329 and S.I. 2016/1239.

(3)

Section 145A was amended by section 103 of the Financial Services Act 2012 (c. 21) and S.I. 2014/3329.

(4)

Section 256A was amended by Schedule 2(1) to the Financial Services (Banking Reform) Act 2013 (c. 33) and S.I. 2014/3329.