Part 6Banknotes: Scotland and Northern Ireland

Authorisation to issue

F1214APower to designate banks as “authorised banks”

(1)

The Treasury may by regulations—

(a)

specify a bank which on and after the designation date is designated as an authorised bank for the purposes of this Part,

(b)

specify a part of the United Kingdom in which the bank may issue banknotes, and

(c)

make provision about how the bank is to be identified on those banknotes.

(2)

Regulations under subsection (1)—

(a)

may only specify under paragraph (a) a bank (the newly authorised bank) which is in the same group as an authorised bank (the previously authorised bank) which has the right to rely on section 213;

(b)

may only specify under paragraph (b) the part of the United Kingdom in which the previously authorised bank is authorised to issue banknotes;

(c)

must procure that on and after the designation date the previously authorised bank is no longer an authorised bank for the purposes of this Part by—

(i)

in the case of a previously authorised bank within section 210(a), providing that it is no longer an authorised bank for the purposes of this Part;

(ii)

in the case of a previously authorised bank within section 210(b), revoking its designation;

(d)

must provide for the newly authorised bank to be treated as having issued any banknotes in circulation which were issued by the previously authorised bank;

(e)

must provide for the transfer of any rights or liabilities in relation to those banknotes to the newly authorised bank from the previously authorised bank;

(f)

may provide for anything done by or in relation to the previously authorised bank in connection with those banknotes to be treated as having been done by or in relation to the newly authorised bank for the purposes specified in the regulations;

(g)

may make further provision about banknotes issued by the previously authorised bank;

(h)

may make provision about banknotes held by or on behalf of the previously authorised bank which are not in circulation.

(3)

The reference in subsection (2)(d) and (g) to banknotes issued by the previously authorised bank includes a reference to banknotes which are to be treated as having been issued by that bank as a result of regulations made under subsection (1) (or any other enactment).

(4)

Regulations under subsection (1) must—

(a)

specify a date as the designation date, or

(b)

if no such date is specified, make provision for the designation date to be determined by the Treasury and published by the Treasury before the designation date in the appropriate Gazettes.

(5)

The appropriate Gazettes are the London Gazette and—

(a)

if the part of the United Kingdom specified under subsection (1)(b) is Scotland, the Edinburgh Gazette;

(b)

if the part of the United Kingdom specified under subsection (1)(b) is Northern Ireland, the Belfast Gazette.

(6)

Before specifying a bank under subsection (1)(a) the Treasury must obtain the consent of the Bank of England.

(7)

The Bank of England must prepare and publish a statement of the matters which it intends to take into account in deciding whether to give its consent.

(8)

The power to make regulations under this section—

(a)

is exercisable by statutory instrument;

(b)

includes a power to make transitory or saving provision;

(c)

includes a power to apply (with or without modifications) or disapply any provision of an Act or subordinate legislation whenever passed or made.

(9)

A statutory instrument containing regulations under this section may not be made unless a draft of the instrument has been laid before and approved by a resolution of each House of Parliament.

(10)

For the purposes of this section—

“bank” has the same meaning as in Part 1 (see section 2),

“designation date” in relation to regulations under subsection (1) means the date specified or determined, as the case may be, in accordance with subsection (4),

“group” has the meaning given by section 421 of the Financial Services and Markets Act 2000, and

a banknote is in circulation from the time that it is issued by an authorised bank until the time that it is returned to the bank (or a bank which is treated as having issued it as a result of regulations made under subsection (1) or any other enactment).