Financial Services and Markets Act 2023

Foreign property

62 (1) This paragraph applies where a property transfer instrument transfers foreign property.

(2) In sub-paragraph (1) “foreign property” means—

(a) property outside the United Kingdom, or

(b) rights and liabilities under foreign law.

(3) The transferor and the transferee must each take any necessary steps to ensure that the transfer is effective as a matter of foreign law (if it is not wholly effective by virtue of the property transfer instrument).

(4) Until the transfer is effective as a matter of foreign law, the transferor must—

(a) hold the property or right for the benefit of the transferee (together with any additional property or right accruing by virtue of the original property or right), or

(b) discharge the liability on behalf of the transferee.

(5) If the Bank determines that, in spite of any action taken by the transferee or the transferor, it is not possible for the transfer of certain property to be effective under the law of the jurisdiction where the property is located or (where the property consists of rights or liabilities) the law under which it arises—

(a) sub-paragraph (4) ceases to apply, and

(b) the provisions of the property transfer instrument relating to that property are void.

(6) The Bank must give notice of any determination under sub-paragraph (5) to the transferor and the transferee.

(7) The transferor must meet any expenses of the transferee in complying with this paragraph.

(8) An obligation imposed by this paragraph is enforceable as if created by contract between the transferor and transferee.

(9) The transferor must comply with any directions of the Bank in respect of the obligations under sub-paragraphs (3) and (4); and—

(a) a direction may disapply sub-paragraphs (3) and (4) to a specified extent, and

(b) obligations imposed by direction are enforceable as if created by contract between the transferor and the Bank.

(10) In this paragraph “foreign law” means the law of a country or territory outside the United Kingdom.