[F1137LInterpretation of sections 137J and 137KU.K.
(1)This section has effect for the interpretation of sections 137J and 137K.
(2)References to the taking of action include the taking of action by—
(a)the authorised person,
(b)any other person in the same group as the authorised person, or
(c)a partnership of which the authorised person is a member.
(3)In subsection (2)(b) the definition of “group” in section 421 applies with the omission of subsection (1)(e) and (f) of that section.
(4)References to the business of an authorised person include the business of—
(a)any person in the same group as the authorised person, and
(b)a partnership of which the authorised person is a member.
(5)For the purposes of section 137K the cases in which the business (or any part of the business) of the authorised person (“A”) is to be regarded as having failed include those where—
(a)A enters insolvency,
(b)any of the stabilisation options in Part 1 of the Banking Act 2009 is achieved in relation to A, or
(c)A falls to be taken for the purposes of the compensation scheme to be unable, or likely to be unable, to satisfy claims against A.
(6)In subsection (5)(a) “insolvency” includes—
(a)bankruptcy,
(b)liquidation,
(c)bank insolvency,
(d)administration,
(e)bank administration,
(f)receivership,
(g)a composition between A and A's creditors, and
(h)a scheme of arrangement of A's affairs.]
Textual Amendments
F1Pt. 9A substituted for ss. 138-164 (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), ss. 24(1), 122(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.