Part VII

Control of Business Transfers

Banking business transfer schemes.
106
1
A scheme is a banking business transfer scheme if it—
a
satisfies one of the conditions set out in subsection (2);
b
is one under which the whole or part of the business to be transferred includes the accepting of deposits; and
c
is not an excluded scheme or a ring-fencing transfer scheme.
2
The conditions are that—
a
the whole or part of the business carried on by a UK authorised person who has permission to accept deposits (“the transferor concerned”) is to be transferred to another body (“the transferee”);
b
the whole or part of the business carried on in the United Kingdom by an authorised person who is not a UK authorised person but who has permission to accept deposits (“the transferor concerned”) is to be transferred to another body which will carry it on in the United Kingdom (“the transferee”).
3
A scheme is an excluded scheme for the purposes of this section if—
a
the transferor concerned is a building society or a 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.
4
For the purposes of subsection (2)(a) it is immaterial whether or not the business to be transferred is carried on in the United Kingdom.
5
“UK authorised person” has the same meaning as in section 105.
6
“Building society” has the meaning given in the Building Societies Act 1986.
7
“Credit union” means a credit union within the meaning of—
a
the Credit Unions Act 1979;
b
the Credit Unions (Northern Ireland) Order 1985.
1986 c. 53.
1979 c. 34.
S.I. 1985/1205 (N.I. 12).
S. 106(3)(b) substituted (6.4.2008) by The Companies Act 2006 (Consequential Amendments etc) Order 2008 (S.I. 2008/948), arts. 2(1), 3(1), Sch. 1 para. 211(2) (with arts. 6, 11, 12)
Pt. 7: power to amend conferred (1.9.2023) by Financial Services Act 2021 (c. 22), ss. 22(8)(a), 49(5); S.I. 2023/934, reg. 2(c)
Words in s. 106(1)(c) inserted (1.3.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 1 para. 4; S.I. 2014/377, art. 2(1)(a), Sch. Pt. 1
Words in Pt. VII substituted (1.3.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 1 para. 2; S.I. 2014/377, art. 2(1)(a), Sch. Pt. 1