Banking Act 2009

  1. Introduction

  2. Background to Act

  3. Summary and Overview of the Structure

    1. Part 1: Special resolution regime (SRR)

    2. Part 2: Bank insolvency

    3. Part 3: Bank administration

    4. Part 4: Financial Services Compensation Scheme

    5. Part 5: Inter-bank payment systems

    6. Part 6: Banknotes: Scotland and Northern Ireland

    7. Part 7: Miscellaneous

  4. Territorial Extent

  5. Commentary on Sections

    1. Part 1: Special Resolution Regime

      1. Introduction

        1. Section 1: Overview

        2. Section 2: Interpretation: “bank”

        3. Section 3: Interpretation: other expressions

      2. Objectives and code

        1. Section 4: Special resolution objectives

        2. Section 5: Code of practice

        3. Section 6: Code of practice: procedure

      3. Exercise of powers: general

        1. Section 7: General conditions

        2. Section 8: Specific conditions: private sector purchaser and bridge bank

        3. Section 9: Specific conditions: temporary public ownership

        4. Section 10: Banking Liaison Panel

      4. The stabilisation options

        1. Section 11: Private sector purchaser

        2. Section 12: Bridge bank

        3. Section 13: Temporary public ownership

      5. Transfer of securities

        1. Section 14: Interpretation: “securities”

        2. Section 15: Share transfer instrument

        3. Section 16: Share transfer order

        4. Section 17: Effect

        5. Section 18: Continuity

        6. Section 19: Conversion and delisting

        7. Section 20: Directors

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

        9. Section 22: Termination rights, &c.

        10. Section 23:  Incidental provision

        11. Section 24: Procedure: instruments

        12. Section 25: Procedure: orders

        13. Section 26: Supplemental instruments

        14. Section 27: Supplemental orders

        15. Section 28: Onward transfer

        16. Section 29: Reverse share transfer

        17. Section 30: Bridge bank: share transfers

        18. Section 31: Bridge bank: reverse share transfers

        19. Section 32: Interpretation: general

      6. Transfer of property

        1. Section 33: Property transfer instrument

        2. Section 34: Effect

        3. Section 35: Transferable property

        4. Section 36: Continuity

        5. Section 37: Licences

        6. Section 38: Termination rights, &c.

        7. Section 39: Foreign property

        8. Section 40: Incidental provision

        9. Section 41: Procedure

        10. Section 42: Supplemental instruments

        11. Section 43: Onward transfer

        12. Section 44: Reverse property transfer

        13. Section 45: Temporary public ownership: property transfer

        14. Section 46: Temporary public ownership: reverse property transfer

        15. Section 47: Restriction of partial transfers

        16. Section 48: Power to protect certain interests

      7. Compensation

        1. Section 49: Orders

        2. Section 50: Sale to private sector purchaser

        3. Section 51: Transfer to temporary public ownership

        4. Section 52: Transfer to bridge bank

        5. Section 53: Onward and reverse transfers

        6. Section 54: Independent valuer

        7. Section 55: Independent valuer: supplemental

        8. Section 56: Independent valuer: money

        9. Section 57: Valuation principles

        10. Section 58: Resolution fund

        11. Section 59: Third party compensation: discretionary provision

        12. Section 60: Third party compensation: mandatory provision

        13. Section 61: Sources of compensation

        14. Section 62: Procedure

      8. Incidental functions

        1. Section 63: General continuity obligation: property transfers

        2. Section 64: Special continuity obligations: property transfers

        3. Section 65: Continuity obligations: onward property transfers

        4. Section 66: General continuity obligation: share transfers

        5. Section 67: Special continuity obligations: share transfers

        6. Section 68: Continuity obligations: onward share transfers

        7. Section 69: Continuity obligations: consideration and terms

        8. Section 70: Continuity obligations: termination

        9. Section 71: Pensions

        10. Section 72: Enforcement

        11. Section 73: Disputes

        12. Section 74: Tax

        13. Section 75: Power to change law

      9. Treasury

        1. Section 76: International obligation notice: general

        2. Section 77: International obligation notice: bridge bank

        3. Section 78: Public funds: general

        4. Section 79: Public funds: bridge bank

        5. Section 80: Bridge bank: report

        6. Section 81: Temporary public ownership: report

      10. Holding companies

        1. Section 82: Temporary public ownership

        2. Section 83: Supplemental

      11. Building societies

        1. Section 84: Application of Part 1: general

        2. Section 85: Temporary public ownership

        3. Section 86: Distribution of assets on dissolution or winding up

        4. Section 87: Interpretation

        5. Section 88: Consequential provision

        6. Section 89: Credit Unions

    2. Part 2: Bank Insolvency

      1. Introduction

        1. Section 90: Overview

        2. Section 91: Interpretation: “bank”

        3. Section 92: Interpretation: “the court”

        4. Section 93: Interpretation: other expressions

      2. Bank insolvency order

        1. Section 94: The order

        2. Section 95: Application

        3. Section 96: Grounds for applying

        4. Section 97: Grounds for making

        5. Section 98: Commencement

      3. Process of bank liquidation

        1. Section 99: Objectives

        2. Section 100: Liquidation committee

        3. Section 101: Liquidation Committee: supplemental

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

        5. Section 103: General powers, duties and effect

        6. Section 104: Additional general powers

        7. Section 105: Status of bank liquidator

      4. Tenure of bank liquidator

        1. Sections 106-112: Tenure of bank liquidator

      5. Termination of process etc.

        1. Sections 113 – 116:  Termination of process, etc.

      6. Other processes

        1. Section 117: Bank insolvency as alternative order

        2. Section 118: Voluntary winding up

        3. Section 119: Exclusion of other procedures

        4. Section 120: Notice to FSA of preliminary steps

        5. Section 121: Disqualification of directors

        6. Section 122: Application of insolvency law

      7. Miscellaneous Provisions

        1. Section 123: Role of FSCS

        2. Section 124: Transfer of accounts

        3. Section 125: Rules

        4. Sections 126-129: Miscellaneous

        5. Section 130: Building societies

        6. Section 131: Credit unions

        7. Section 132: Partnerships

        8. Section 133: Scottish partnerships

        9. Section 134 Northern Ireland

        10. Section 135: Consequential provisions

    3. Part 3: Bank Administration Procedure

      1. Introduction

        1. Section 136: Overview

        2. Section 137: Objectives

        3. Section 138: Objective 1: supporting private sector purchaser or bridge bank

        4. Section 139: Objective 1: duration

        5. Section 140: Objective 2: “normal” administration

      2. Process

        1. Section 141: Bank Administration Order

        2. Section 142: Application

        3. Section 143: Grounds for applying

        4. Section 144: Grounds for making

        5. Section 145: General powers, duties and effect

        6. Section 146: Status of bank administrator

        7. Section 147: Administrator’s proposals

        8. Section 148: Sharing information

      3. Multiple Transfers

        1. Section 149: General application of this Part

        2. Section 150: Bridge bank to private purchaser

        3. Section 151: Property transfer from a bridge bank

        4. Section 152: Property transfer from temporary public sector ownership

      4. Termination

        1. Section 153:  Successful rescue

        2. Section 154: Winding-up or voluntary arrangement

      5. Miscellaneous

        1. Section 155: Disqualification of directors

        2. Section 156: Application of other law

        3. Section 157: Other processes

        4. Section 158: Building Societies

        5. Section 159: Credit Unions

        6. Section 160: Rules

        7. Section 161: Fees

        8. Section 162: Evidence

        9. Section 163: Partnerships

        10. Section 164: Scottish partnerships

        11. Section 165: Co-operation between courts

        12. Section 166: Interpretation: general

        13. Section 167: Northern Ireland

        14. Section 168: Consequential provisions

    4. Part 4: Financial Services Compensation Scheme

      1. Section 169: Overview

      2. Section 170: Contingency Funding

      3. Section 171: Special resolution regime

      4. Section 172: Investing in National Loans Fund

      5. Section 173: Borrowing from the National Loans Fund

      6. Section 174: Procedure for claims

      7. Section 175: Rights in insolvency

      8. Section 176: Information

      9. Section 177: Payments in error

      10. Section 178: Regulations

      11. Section 179 Delegation of functions

      12. Section 180: Functions under this Act

    5. Part 5: Inter-Bank Payment Systems

      1. Introduction

        1. Section 181: Overview

        2. Section 182: Interpretation: “inter-bank payment system”

        3. Section 183: Interpretation: other expressions

      2. Recognised systems

        1. Section 184: Recognition order

        2. Section 185: Recognition criteria

        3. Section 186: Procedure

        4. Section 187: De-recognition

      3. Regulation

        1. Section 188: Principles

        2. Section 189: Codes of practice

        3. Section 190: System rules

        4. Section 191: Directions

        5. Section 192: Role of FSA

      4. Enforcement

        1. Section 193: Inspection

        2. Section 194: Inspection: warrant

        3. Section 195: Independent Report

        4. Section 196: Compliance failure

        5. Section 197: Publication

        6. Section 198: Penalty

        7. Section 199: Closure

        8. Section 200: Management disqualification

        9. Section 201: Warning

        10. Section 202: Appeal

      5. Miscellaneous

        1. Section 203: Fees

        2. Section 204: Information

        3. Section 205: Pretending to be recognised

        4. Section 206: Saving for informal oversight

    6. Part 6: Banknotes: Scotland And Northern Ireland

      1. Introduction

        1. Section 207: Overview

      2. Key terms

        1. Section 208: “Banknote”

        2. Section 209: “Issue”

        3. Section 210: “Authorised bank”

        4. Section 211 “Commencement”

      3. Authorisation to issue

        1. Section 212: Repeal of old authorising enactments

        2. Section 213: Saving for existing issuers

        3. Section 214: Consequential repeals and amendments

      4. Regulations and rules

        1. Section 215: Banknote regulations

        2. Section 216: Banknote rules

      5. Specific issues

        1. Section 217: Backing assets

        2. Section 218: Information

        3. Section 219: Ceasing the business of issuing notes

        4. Section 220: Insolvency, &c

      6. Enforcement

        1. Section 221: Offence: unlawful issue

        2. Section 222: Financial penalty

        3. Section 223: Termination of right to issue

        4. Section 224: Application to court

      7. Bank of England

        1. Section 225: Organisation

        2. Section 226: Discretionary functions

        3. Section 227: Exemption

    7. Part 7: Miscellaneous

      1. Treasury support for banks

        1. Section 228: Consolidated Fund

        2. Section 229: National Loans Fund

        3. Section 230: “Financial institution”

        4. Section 231: Reports

      2. Investment Banks

        1. Section 232: Definition

        2. Section 233: Insolvency regulations

        3. Section 234: Regulations: details

        4. Section 235: Regulations: procedure

        5. Section 236: Review

      3. Banking (Special Provisions) Act 2008

        1. Section 237: Compensation: valuer

      4. Bank of England

        1. Section 238: UK Financial Stability

      5. Financial stability committee: supplemental

        1. Section 239: Number of Directors

        2. Section 240: Meetings

        3. Section 241: Chair of Court

        4. Section 242: Quorum

        5. Section 243: Tenure

        6. Section 244: Immunity

        7. Section 245: Weekly return

        8. Section 246: Information

        9. Section 247: Bank of England Act 1946

      6. Financial Services Authority

        1. Section 248: Variation of permission

        2. Section 249: Functions

        3. Section 250: Information

      7. Central banks

        1. Section 251: Financial assistance to building societies

        2. Section 252: Registration of charges

        3. Section 253: Registration of charges: Scotland

      8. Funds attached rule (Scotland)

        1. Section 254: Abolition for cheques

      9. Financial collateral arrangements

        1. Section 255: Regulations

        2. Section 256: Supplemental

    8. Part 8: General

      1. Section 257: “Financial assistance”

      2. Section 258: “Enactment”

      3. Section 259: Statutory instruments

      4. Sections 260-265: General

  6. Commencement

  7. Hansard References

  8. ANNEX A:LIST OF ABBREVIATIONS