C2C3C4C5Part XV The Financial Services Compensation Scheme
Pt. 15 modified (29.9.2008 at 8.00 a.m.) by The Bradford & Bingley plc Transfer of Securities and Property etc. Order 2008 (S.I. 2008/2546), art. 29 (with art. 30(6))
Pt. 15 modified (7.10.2008 at 9.30 a.m.) by The Heritable Bank plc Transfer of Certain Rights and Liabilities Order 2008 (S.I. 2008/2644), art. 14 (with art. 15(8)
Pt. 15 modified (8.10.2008 at 12.15 p.m.) by The Kaupthing Singer & Friedlander Limited Transfer of Certain Rights and Liabilities Order 2008 (S.I. 2008/2674), art. 15 (with art. 16(8))
Provisions of the scheme
F1214CF1C1Limit on amount of special resolution regime payments
1
The total amount of special resolution regime payments required to be made in respect of a person (“the institution”) may not exceed—
a
notional net expenditure (see subsection (3)), minus
b
actual net expenditure (see subsection (4)).
2
A “special resolution regime payment” is—
a
a payment under section 214B(2); or
b
a payment required to be made by the scheme manager by virtue of section 61 of the Banking Act 2009 (special resolution regime: compensation).
3
Notional net expenditure is—
a
the total amount of expenses that would have been incurred under the compensation scheme in respect of the institution if the stabilisation power had not been exercised and the institution had been unable to satisfy claims against it, minus
b
the total amount that would have been likely, at the time when the power was exercised, to be recovered by the scheme manager in respect of the institution in those circumstances.
4
Actual net expenditure is—
a
the total amount of expenses (other than special resolution regime payments) actually incurred by the scheme manager in respect of the institution, minus
b
the total amount actually recovered by the scheme manager in respect of the institution.
5
In subsection (3)(a) “expenses” includes interest at a specified rate on the difference, at any time, between—
a
the total amount of expenses (including interest) that would have been incurred as mentioned in subsection (3)(a) at or before that time; and
b
the total amount that would have been likely to have been recovered as mentioned in subsection (3)(b) at or before that time.
6
In subsection (4)(a) “expenses” includes interest at a specified rate on the difference, at any time, between—
a
the total amount of expenses (including special resolution regime payments and interest) actually incurred by the scheme manager in respect of the institution at or before that time; and
b
the total amount actually recovered by the scheme manager in respect of the institution at or before that time.
7
In paragraph (b) of subsections (3) to (6) references to amounts recovered (or likely to have been recovered) by the scheme manager do not include any levy received (or likely to have been received) by it.
Pt. XV (ss. 212-224) excluded (27.4.2002) by The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544), art. 9J (as inserted by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002 (S.I. 2002/682), arts. 1(2), 4)
Pt. XV (ss. 212-224) modified (2.7.2002) by The Financial Services and Markets Act 2000 (Consequential Amendments and Transitional Provisions) (Credit Unions) Order 2002 (S.I. 2002/1501), art. 5