Modifications etc. (not altering text)
C1Pt. 1 restricted (7.1.2010) by Banking Act 2009 (Exclusion of Insurers) Order 2010 (S.I. 2010/35), arts. 1, 2
(1)The purpose of the special resolution regime for banks is to address the situation where all or part of the business of a bank has encountered, or is likely to encounter, financial difficulties.
(2)The special resolution regime consists of—
(a)the three stabilisation options,
(b)the bank insolvency procedure (provided by Part 2), and
(c)the bank administration procedure (provided by Part 3).
(3)The three “stabilisation options” are—
(a)transfer to a private sector purchaser (section 11),
(b)transfer to a bridge bank (section 12), and
(c)transfer to temporary public ownership (section 13).
(4)Each of the three stabilisation options is achieved through the exercise of one or more of the “stabilisation powers”, which are—
(a)the share transfer powers (sections 15, 16, 26 to 31 and 85), and
(b)the property transfer powers (sections 33 and 42 to 46).
(5)Each of the following has a role in the operation of the special resolution regime—
(a)the Bank of England,
(b)the Treasury, and
(c)the Financial Services Authority.
(6)The Table describes the provisions of this Part.
| Sections | Topic |
|---|---|
| Sections 1 to 3 | Introduction |
| Sections 4 to 6 | Objectives and code |
| Sections 7 to 10 | Exercise of powers: general |
| Sections 11 to 13 | The stabilisation options |
| Sections 14 to 32 | Transfer of securities |
| Sections 33 to [F148A] | Transfer of property |
| Sections 49 to 62 | Compensation |
| Sections 63 to 75 | Incidental functions |
| Sections 76 to 81 | Treasury |
| Sections 82 and 83 | Holding companies |
| Sections 84 to 89 | Building societies, &c. |
Textual Amendments
F1Word in s. 1(6) substituted (8.4.2010) by Financial Services Act 2010 (c. 28), s. 26(1)(l), Sch. 2 para. 40
Commencement Information
I1S. 1 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 1
(1)In this Part “bank” means a UK institution which has permission under Part 4 of the Financial Services and Markets Act 2000 to carry on the regulated activity of accepting deposits (within the meaning of section 22 of that Act, taken with Schedule 2 and any order under section 22).
(2)But “bank” does not include—
(a)a building society (within the meaning of section 119 of the Building Societies Act 1986),
(b)a credit union within the meaning of section 31 of the Credit Unions Act 1979, or
(c)any other class of institution excluded by an order made by the Treasury.
(3)In subsection (1) “UK institution” means an institution which is incorporated in, or formed under the law of any part of, the United Kingdom.
(4)Where a stabilisation power is exercised in respect of a bank, it does not cease to be a bank for the purposes of this Part if it later loses the permission referred to in subsection (1).
(5)An order under subsection (2)(c)—
(a)shall be made by statutory instrument, and
(b)may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.
(6)Section 84 applies this Part to building societies with modifications.
(7)Section 89 allows the application of this Part to credit unions.
Commencement Information
I2S. 2 in force at 17.2.2009 for specified purposes by S.I. 2009/296, arts. 2, 3, Sch. para. 1
I3S. 2 in force at 21.2.2009 in so far as not already in force by S.I. 2009/296, arts. 2, 3, Sch. para. 1
In this Part—
“the FSA” means the Financial Services Authority, and
“financial assistance” has the meaning given by section 257.
Commencement Information
I4S. 3 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 1