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Banking Act 2009

  • Explanatory Notes Table of contents

Please note:

All reference to 'Parts' and 'sections' are from the Banking Act 2009. For other versions of these Explanatory Notes, see More Resources.

  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

  • Explanatory Notes Table of contents

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Explanatory Notes

Text created by the government department responsible for the subject matter of the Act to explain what the Act sets out to achieve and to make the Act accessible to readers who are not legally qualified. Explanatory Notes were introduced in 1999 and accompany all Public Acts except Appropriation, Consolidated Fund, Finance and Consolidation Acts.

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