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Banking Act 2009

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  1. Introductory Text

  2. Part 1 Special Resolution Regime

    1. Chapter 1 Introduction

      1. 1.Overview

      2. 2.Interpretation: “bank”

      3. 3.Interpretation: other expressions

    2. Chapter 2 Pre-resolution powers of the Bank of England

      1. 3A.Removal of impediments to the exercise of stabilisation powers etc

      2. 3B.Safeguards relating to directions under section 3A

    3. Chapter 3 Special resolution action

      1. Objectives and code

        1. 4.Special resolution objectives

        2. 5.Code of practice

        3. 6.Code of practice: procedure

      2. Mandatory write-down, conversion etc of capital instruments

        1. 6A.Cases where mandatory write-down, conversion, etc applies

        2. 6B.Mandatory write-down, conversion, etc of capital instruments and liabilities

        3. 6C.Mandatory reduction instruments: implementation of requirements of section 6B

        4. 6D.Mandatory reduction instruments: supplementary matters

      3. Valuation before mandatory write-down of capital or stabilisation action

        1. 6E.Pre-resolution valuation

      4. Exercise of powers: general

        1. 7.General conditions

        2. 7A.Effect on other group members, financial stability in UK etc

        3. 8.Specific Condition: private sector purchaser, bridge bank or asset management vehicle

        4. 8ZA.Specific conditions: asset management vehicle

        5. 8A.Specific condition: bail-in

        6. 9.Specific conditions: temporary public ownership

        7. 10.Banking Liaison Panel

      5. The stabilisation options

        1. 11.Private sector purchaser

        2. 11A.Private sector purchaser: marketing

        3. 12.Bridge bank

        4. 12ZA.Asset management vehicle

        5. 12A.Bail-in option

        6. 12AA.Bail-in: sequence of write-down and conversion of capital instruments and liabilities

        7. 12B.Bail-in administrators

        8. 13.Temporary public ownership

      6. Transfer of securities

        1. 14.Interpretation: “securities”

        2. 15.Share transfer instrument

        3. 16.Share transfer order

        4. 17.Effect

        5. 18.Continuity

        6. 19.Conversion and delisting

        7. 20.Directors and senior managers

        8. 21.Ancillary instruments: production, registration, &c.

        9. 22.Termination rights, &c.

        10. 23.Incidental provision

        11. 24.Procedure: instruments

        12. 25.Procedure: orders

        13. 26.Supplemental instruments

        14. 26ZA.Onward share transfer instruments

        15. 26A.... reverse share transfer instruments

        16. 27.Supplemental orders

        17. 28.Onward transfer

        18. 29.Reverse share transfer orders

        19. 29A.Interpretation: “resolution company”

        20. 30.Resolution company: share transfers

        21. 31.Resolution company: reverse share transfer

        22. 32.Interpretation: general

      7. Transfer of property

        1. 33.Property transfer instrument

        2. 34.Effect

        3. 35.Transferable property

        4. 36.Continuity

        5. 36A.Directors and senior managers

        6. 37.Licences

        7. 38.Termination rights, &c.

        8. 39.Foreign property

        9. 39A.Banks which are recognised central counterparties

        10. 39B.Property transfer instrument: delisting

        11. 40.Incidental provision

        12. 41.Procedure

        13. 41A.Transfer of property subsequent to resolution instrument

        14. 42.Supplemental instruments

        15. 42A.Private sector purchaser: reverse property transfer

        16. 43.Onward transfer

        17. 44.Resolution company: reverse property transfer

        18. 44A.Bail in: reverse property transfer

        19. 44B.Property transfer instruments: special bail-in provision

        20. 44BA.Property transfer instruments and special bail-in provision: supplementary matters

        21. 44C.Report on special bail-in provision

        22. 44D.Bridge bank: supplemental property transfer powers

        23. 44E.Bridge bank: supplemental reverse property transfer powers

        24. 45.Temporary public ownership: property transfer

        25. 46.Temporary public ownership: reverse property transfer

        26. 47.Restriction of partial transfers

        27. 48.Power to protect certain interests

        28. 48A.Creation of liabilities

      8. Bail-in option

        1. 48B.Special bail-in provision

        2. 48C.Meaning of “protected deposit”

        3. 48D.General interpretation of section 48B

        4. 48E.Report on special bail-in provision

        5. 48F.Power to amend definition of “excluded liabilities”

        6. 48G.Priority between creditors

        7. 48H.Business reorganisation plans

        8. 48I.Bail-in administrator: further functions

        9. 48J.Bail-in administrator: supplementary

        10. 48K.Bail-in administrator: money

        11. 48L.Powers in relation to securities

        12. 48M.Termination rights, etc

        13. 48N.Directors and senior managers

        14. 48O.Directions in or under resolution instrument

        15. 48P.Orders for safeguarding certain financial arrangements

        16. 48Q.Continuity

        17. 48R.Execution and registration of instruments etc

        18. 48S.Resolution instruments: general matters

        19. 48T.Procedure

        20. 48U.Supplemental resolution instruments

        21. 48V.Onward transfer

        22. 48W.Reverse transfer

        23. 48WA.Bail-in option: recovery of expenses

      9. Replacement of provisional valuation

        1. 48X.Replacement of Bank’s provisional valuation

        2. 48Y.Consequences of a replacement valuation

      10. Termination rights etc

        1. 48Z.Termination rights etc

      11. Compensation

        1. 49.Orders

        2. 50.Sale to private sector purchaser

        3. 51.Transfer to temporary public ownership

        4. 52.Transfer to resolution company

        5. 52A.Bail-in option

        6. 53.Onward and reverse transfers etc

        7. 54.Independent valuer: compensation scheme order or bail-in compensation order

        8. 55.Independent valuer: supplemental

        9. 56.Independent valuer: money

        10. 57.Valuation principles

        11. 58.Resolution fund

        12. 59.Third party compensation: discretionary provision

        13. 60.Third party compensation: mandatory provision

        14. 60A.Further mandatory provision: bail-in provision

        15. 60B.Principle of no less favourable treatment

        16. 61.Sources of compensation

        17. 62.Procedure

      12. Independent valuer: valuation under section 6E or 48X

        1. 62A.Independent valuer: sections 6E and 48X

      13. Resolution administrator

        1. 62B.Resolution administrator

        2. 62C.Resolution administrator: further functions

        3. 62D.Resolution administrator: supplementary

        4. 62E.Resolution administrator: money

      14. Incidental functions

        1. 63.General continuity obligation: property transfers

        2. 64.Special continuity obligations: property transfers

        3. 65.Continuity obligations: onward property transfers

        4. 66.General continuity obligation: share transfers

        5. 67.Special continuity obligations: share transfers

        6. 68.Continuity obligations: onward share transfers

        7. 69.Continuity obligations: consideration and terms

        8. 70.Continuity obligations: termination

        9. 70A.Suspension of obligations

        10. 70B.Restriction of security interests

        11. 70C.Suspension of termination rights

        12. 70D.Suspension: general provisions

        13. 71.Pensions

        14. 72.Enforcement

        15. 73.Disputes

        16. 74.Tax

        17. 75.Power to change law

      15. Treasury

        1. 76.International obligation notice: general

        2. 77.International obligation notice: resolution company

        3. 78.Public funds: general

        4. 78A.Pre-conditions for financial assistance: duty of Bank to give information

        5. 79.Public funds: resolution company

        6. 79A.Private sector purchaser: report

        7. 80.Resolution company: report

        8. 80A.Transfer for bail-in purposes: report

        9. 81.Temporary public ownership: report

        10. 81A.Accounting information to be included in reports under sections 80, 80A(2)(b) and 81

      16. Groups

        1. 81AA.Cases where mandatory write-down, conversion etc applies: banking group companies

        2. 81B.Sale to commercial purchaser and transfer to bridge bank

        3. 81ZZBA.Sale to commercial purchaser and transfer to bridge bank: supplemental powers in relation to certain holding companies

        4. 81ZZBB.Assessment of conditions for section 81ZZBA

        5. 81ZBA.Transfer to asset management vehicle

        6. 81ZBB.Transfer to asset management vehicle: supplemental powers in relation to certain holding companies

        7. 81ZBC.Assessment of conditions for section 81ZBB

        8. 81BA.Bail-in option

        9. 81BB.Bail-in option: supplemental powers in relation to certain holding companies

        10. 81BC.Assessment of conditions for section 81BB

        11. 81C.Sections 81AA to 81ZBB: supplemental

        12. 81CA.Section 81BA and Section 81BB: supplemental

        13. 81D.Interpretation: “banking group company” &c.

        14. 82.Temporary public ownership

        15. 83.Supplemental

    4. Chapter 4 Information, investigation and enforcement

      1. Powers to gather information

        1. 83ZA.Information

        2. 83ZB.Reports by skilled persons

      2. Appointment of investigators

        1. 83ZC.Appointment of persons to carry out general investigations

        2. 83ZD.Appointment of person to carry out investigations in particular cases

        3. 83ZE.Investigations etc in support of foreign resolution authorities

      3. Conduct of investigations

        1. 83ZF.Investigations: general

        2. 83ZG.Powers of persons appointed under section 83ZC

        3. 83ZH.Powers of persons appointed as a result of section 83ZD

        4. 83ZI.Admissibility of statements made to investigators

      4. Information and documents: supplemental provision

        1. 83ZJ.Information and documents: supplemental provision

        2. 83ZK.Protected items

        3. 83ZL.Entry of premises under warrant

        4. 83ZM.Retention of documents obtained under section 83ZL

        5. 83ZN.Offences etc

        6. 83ZO.Prosecution of offences under section 83ZN

        7. 83ZP.Offences under section 83ZN by bodies corporate etc

      5. Enforcement of relevant requirements

        1. 83ZQ.Injunctions: prevent failure to comply with relevant requirement

        2. 83ZR.Regulatory sanctions

        3. 83ZS.Determination of sanctions

        4. 83ZT.Procedure: warning notice

        5. 83ZU.Procedure: decision notice

        6. 83ZV.Procedure: general

        7. 83ZW.Appeal

        8. 83ZX.Injunctions: failure to comply with certain section 83ZR sanctions

        9. 83ZY.Publication

        10. 83ZZ.Co-operation

        11. 83Z1.Delegation of enforcement functions

      6. Enforcement of share transfer orders

        1. 83Z2.Enforcement: share transfer orders

    5. Chapter 5 Special cases

      1. Banks not regulated by PRA

        1. 83A.Modifications of Part

      2. Building societies, &c.

        1. 84.Application of Part 1: general

        2. 84ZA.Bridge bank: share transfer instruments

        3. 84A.Bail-in option: building societies

        4. 84B.Further provision: conversion of building society into company

        5. 84C.Further provision: transfer of business of building society to company

        6. 84D.Transfer to a bridge bank or Bail-in option: modifications of this Act and other legislation

        7. 85.Temporary public ownership

        8. 86.Distribution of assets on dissolution or winding up

        9. 87.Interpretation

        10. 88.Consequential provision

        11. 89.Credit unions

      3. Investment firms

        1. 89A.Application to investment firms

      4. ...

        1. 89B.Application to recognised central counterparties

        2. 89C.Recognised central counterparty rules

        3. 89D.Recognised central counterparty membership

        4. 89E.Recognition of transferee company

        5. 89F.Recognised central counterparty compensation orders

        6. 89G.Interpretation: “recognised central counterparty” &c.

    6. Chapter 6 Third-country resolution actions

      1. Third-country resolution actions

        1. 89H.Recognition of third-country resolution actions

        2. 89I.Effect of recognition of third-country resolution action by Bank of England

        3. 89J.Third-country instruments: supplementary provision


      1. 89JA.Resolution of UK branches of third-country institutions

    8. Chapter 7 General provisions

      1. 89K.Insolvency Proceedings

      2. 89L.Restrictions on disclosure of confidential information

      3. 89M.Giving of notices, documents etc under Part 1

  3. Part 2 Bank Insolvency

    1. Introduction

      1. 90.Overview

      2. 91.Interpretation: “bank”

      3. 92.Interpretation: “the court”

      4. 93.Interpretation: other expressions

    2. Bank insolvency order

      1. 94.The order

      2. 95.Application

      3. 96.Grounds for applying

      4. 97.Grounds for making

      5. 98.Commencement

    3. Process of bank liquidation

      1. 99.Objectives

      2. 100.Liquidation committee

      3. 101.Liquidation committee: supplemental

      4. 102.Objective 1: (a) or (b)?

      5. 103.General powers, duties and effect

      6. 104.Additional general powers

      7. 105.Status of bank liquidator

    4. Tenure of bank liquidator

      1. 106.Term of appointment

      2. 107.Resignation

      3. 108.Removal by court

      4. 109.Removal by creditors

      5. 110.Disqualification

      6. 111.Release

      7. 112.Replacement

    5. Termination of process, &c.

      1. 113.Company voluntary arrangement

      2. 114.Administration

      3. 115.Dissolution

      4. 116.Dissolution: supplemental

    6. Other processes

      1. 117.Bank insolvency as alternative order

      2. 118.Voluntary winding-up

      3. 119.Exclusion of other procedures

      4. 120.Notice to PRA of preliminary steps

      5. 120A.Notice to the regulators and the Bank of England of preliminary steps

      6. 121.Disqualification of directors

      7. 122.Application of insolvency law

    7. Miscellaneous

      1. 123.Role of FSCS

      2. 124.Transfer of accounts

      3. 125.Rules

      4. 126.Fees

      5. 127.Insolvency Services Account

      6. 128.Evidence

      7. 129.Co-operation between courts

      8. 129A.Banks not regulated by PRA

      9. 130.Building societies

      10. 131.Credit unions

      11. 132.Partnerships

      12. 133.Scottish partnerships

      13. 134.Northern Ireland

      14. 135.Consequential provision

  4. Part 3 Bank Administration

    1. Introduction

      1. 136.Overview

      2. 137.Objectives

      3. 138.Objective 1: supporting private sector purchaser or resolution company

      4. 139.Objective 1: duration

      5. 140.Objective 2: “normal” administration

    2. Process

      1. 141.Bank administration order

      2. 142.Application

      3. 143.Grounds for applying

      4. 144.Grounds for making

      5. 145.General powers, duties and effect

      6. 145A.Power to direct bank administrator

      7. 146.Status of bank administrator

      8. 147.Administrator's proposals

      9. 148.Sharing information

    3. Multiple transfers

      1. 149.General application of this Part

      2. 150.Resolution company to private purchaser

      3. 151.Property transfer from resolution company

      4. 152.Property transfer from temporary public ownership

      5. 152A.Property transfer from transferred institution

    4. Termination

      1. 153.Successful rescue

      2. 154.Winding-up or voluntary arrangement

    5. Miscellaneous

      1. 155.Disqualification of directors

      2. 156.Application of other law

      3. 157.Other processes

      4. 157A.Banks not regulated by PRA

      5. 158.Building societies

      6. 159.Credit unions

      7. 159A.Application to investment firms

      8. 160.Rules

      9. 161.Fees

      10. 162.Evidence

      11. 163.Partnerships

      12. 164.Scottish partnerships

      13. 165.Co-operation between courts

      14. 166.Interpretation: general

      15. 167.Northern Ireland

      16. 168.Consequential provision

  5. Part 4 Financial Services Compensation Scheme

    1. 169.Overview

    2. 170.Contingency funding

    3. 171.Special resolution regime

    4. 172.Investing in National Loans Fund

    5. 173.Borrowing from National Loans Fund

    6. 174.Procedure for claims

    7. 175.Rights in insolvency

    8. 176.Information

    9. 177.Payments in error

    10. 178.Regulations

    11. 179.Delegation of functions

    12. 180.Functions under this Act

  6. Part 5 ... Payment Systems and service providers

    1. Introduction

      1. 181.Overview

      2. 182.Interpretation: ... key terms

      3. 183.Interpretation: other expressions

    2. Recognised systems and service providers

      1. 184.Recognition order : payment system

      2. 184A.Recognition order: DSA service provider

      3. 185.Recognition criteria : payment system

      4. 185A.Recognition criteria: DSA service provider

      5. 186.Procedure

      6. 186A.Amendment of recognition order

      7. 187.De-recognition

    3. Regulation

      1. 188.Principles

      2. 189.Codes of practice

      3. 190.System rules

      4. 190A.Service provider rules

      5. 191.Directions

      6. 192.Role of FCA and PRA

      7. 192A.Power of Bank to require FCA to refrain from specified action

    4. Enforcement

      1. 193.Inspection

      2. 194.Inspection: warrant

      3. 195.Independent report

      4. 196.Compliance failure

      5. 197.Publication

      6. 198.Penalty

      7. 199.Closure

      8. 200.Management disqualification

      9. 201.Warning

      10. 202.Appeal

      11. 202A.Injunctions

    5. Miscellaneous

      1. 203.Fees

      2. 203A.Records

      3. 203B.Annual report

      4. 203C.Policy statement

      5. 204.Information

      6. 205.Pretending to be recognised

      7. 206.Saving for informal oversight

      8. 206A.Service providers

      9. 206AA.Service providers connected with a recognised payment system that uses digital settlement assets

      10. 206B.International obligations

  7. PART 5A Wholesale cash distribution

    1. Introduction

      1. 206C.Overview and purpose

      2. 206D.Policy statement

      3. 206E.Interpretation: “wholesale cash distribution”

      4. 206F.Interpretation: other terms

    2. Recognised persons

      1. 206G.Wholesale cash oversight orders

      2. 206H.“Market significance” and “systemic significance”

      3. 206I.Procedure

      4. 206J.Amendment or revocation of a wholesale cash oversight order

    3. Regulation

      1. 206K.Principles

      2. 206L.Codes of practice

      3. 206M.Directions

      4. 206N.Role of the FCA, PRA and Payment Systems Regulator

    4. Enforcement

      1. 206O.Inspection

      2. 206P.Inspection: warrant

      3. 206Q.Independent report

      4. 206R.Compliance failure

      5. 206S.Publication

      6. 206T.Penalty

      7. 206U.Closure

      8. 206V.Management disqualification

      9. 206W.Warning

      10. 206X.Appeal

      11. 206Y.Injunctions

    5. Miscellaneous

      1. 206Z.Fees

      2. 206Z1.Records

      3. 206Z2.Annual report

      4. 206Z3.Requirement to provide information

      5. 206Z4.Disclosure of information

      6. 206Z5.Saving for informal oversight

    6. Companies wholly owned by the Crown

      1. 206Z6.Power to disapply regulation and enforcement provisions

  8. Part 6 Banknotes: Scotland and Northern Ireland

    1. Introduction

      1. 207.Overview

    2. Key terms

      1. 208.“Banknote”

      2. 209.“Issue”

      3. 210.“Authorised bank”

      4. 211.“Commencement”

    3. Authorisation to issue

      1. 212.Repeal of old authorising enactments

      2. 213.Authorisation to issue banknotes

      3. 214.Consequential repeals and amendments

      4. 214A.Power to designate banks as “authorised banks”

    4. Regulations and rules

      1. 215.Banknote regulations

      2. 216.Banknote rules

    5. Specific issues

      1. 217.Backing assets

      2. 218.Information

      3. 219.Ceasing the business of issuing notes

      4. 220.Insolvency, &c.

    6. Enforcement

      1. 221.Offence: unlawful issue

      2. 222.Financial penalty

      3. 223.Termination of right to issue

      4. 224.Application to court

    7. Bank of England

      1. 225.Organisation

      2. 226.Discretionary functions

      3. 227.Exemption

  9. Part 7 Miscellaneous

    1. Treasury support for banks

      1. 228.Consolidated Fund

      2. 229.National Loans Fund

      3. 230.“Financial institution”

      4. 231.Reports

    2. Investment banks

      1. 232.Definition

      2. 233.Insolvency regulations

      3. 234.Regulations: details

      4. 235.Regulations: procedure

      5. 236.Review

    3. Banking (Special Provisions) Act 2008

      1. 237.Compensation: valuer

    4. Bank of England

      1. 238.UK financial stability

      2. 239.Number of directors

      3. 240.Meetings

      4. 241.Chair of court

      5. 242.Quorum

      6. 243.Tenure

      7. 244.Immunity

      8. 245.Weekly return

      9. 246.Information

      10. 247.Bank of England Act 1946

    5. Financial Services Authority

      1. 248.Variation of permission

      2. 249.Functions

      3. 250.Information

    6. Central banks

      1. 251.Financial assistance to building societies

      2. 252.Registration of charges

      3. 253.Registration of charges: Scotland

    7. Funds attached rule (Scotland)

      1. 254.Abolition for cheques

    8. Financial collateral arrangements

      1. 255.Regulations

      2. 256.Supplemental

    9. ...

      1. 256A.State aid

      2. 256B.Bank of England” and “Prudential Regulation Authority”

  10. Part 8 General

    1. 257.“Financial assistance”

    2. 258.“Enactment”

    3. 258A.Investment firm”

    4. 259.Statutory instruments

    5. 260.Money

    6. 261.Index of defined terms

    7. 262.Repeal

    8. 263.Commencement

    9. 264.Extent

    10. 265.Short title

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