Legalize / United Kingdom / Public General Act

Banking Act 2009

Type Public General Act

Publication 2009-02-12

Last updated 2026-01-19

State In force

Department Statute Law Database

Source legislation.gov.uk

articles Not indexed

Reform history JSON API

Provision	Modification
Sections 6A (cases where mandatory write-down, conversion, etc applies) to 6D (mandatory reduction instruments: supplementary matters)	Ignore sections 6A to 6D.
Section 8 (specific condition: private sector purchaser, bridge bank or asset management vehicle)	Ignore section 8.
Section 8ZA (specific conditions: asset management vehicle)	In subsection (1) treat the reference to a bank as a reference to a UK branch.In subsection (2), treat the first reference to the bank as a reference to the UK branch, and the second reference to the bank as a reference to the third-country institution.In subsection (3)(b) treat the first reference to the bank as a reference to the third-country institution.If the third-country institution is FCA-regulated, ignore subsection (4) (a) unless the third-country institution has as a member of its immediate group a PRA-authorised person.In subsection (6), ignore the reference to section 8.
Section 9 (specific conditions: temporary public ownership)	Ignore section 9.
Section 11 (private sector purchaser)	In subsection (1), treat the reference to the bank as a reference to the UK branch.Ignore subsection (2)(a).
Section 11A (private sector purchaser: marketing)	In subsections (1), (2)(c) and (5), treat the reference to the bank as a reference to the third-country institution.In subsection (1), ignore paragraph (a).In subsections (2)(d) and (3)(a), ignore the reference to securities.
Section 12 (bridge bank)	In subsection (1), treat the reference to the bank as a reference to the UK branch.In subsection (1A)(c), treat the reference to the bank or its business as a reference to the business of the UK branch.Ignore subsection (2)(a).
Section 12ZA (asset management vehicle)	In subsection (1)(a), treat the reference to the bank as a reference to the UK branch.In subsection (1)(b)—(a) ignore the reference to shares,(b) treat the reference to property, rights or liabilities of the bank as a reference to property, rights or liabilities of the third-country institution which form part of the business of the UK branch.In subsection (2)(c) treat the first reference to banks as including a reference to third-country institutions.
Sections 12A (bail-in option), 12AA (bail-in: sequence of write down and conversion of capital instruments and liabilities) and 13 (temporary public ownership)	Ignore sections 12A, 12AA and 13.
Sections 15 (share transfer instrument) to 29 (reverse share transfer orders)	Ignore sections 15 to 29.
Sections 30 (resolution company: share transfers) and 31 (resolution company: reverse transfer)	Ignore sections 30 and 31.
Section 33 (property transfer instrument)	In subsections (1) and (2), treat references to property, rights or liabilities of a specified bank as references to property, rights or liabilities of the third-country institution which form part of the business of a specified UK branch, or to property, rights or liabilities of a resolution company.Ignore subsection (3).
Section 36A (directors and senior managers)	In subsections (1) and (2), ignore each reference to a director.In subsections (1) and (4) treat each reference to a specified bank as a reference to a specified UK branch.In subsection (2) treat the reference to a specified bank as a reference to the third-country institution.In subsection (5), treat the first reference to a bank as a reference to a UK branch or a third-country institution, and ignore the words “(whether or not it is a bank)”.
Section 39A (banks which are clearing houses)	Ignore section 39A.
Section 41 (procedure)	In subsection (1)—(a) treat the first reference to a bank as a reference to a UK branch,(b) in paragraph (a), treat the reference to the bank as a reference to the third-country institution,(c) if the third-country institution is FCA-regulated, ignore paragraph (c).In subsection (2) treat the references to the bank as references to the third-country institution.In subsection (4), treat the first reference to a bank as a reference to a UK branch or a third-country institution, and ignore the words “even if it is not a bank”.
Section 41A (transfer of property subsequent to resolution instrument)	Ignore section 41A.
Section 42 (supplemental instruments)	In subsections (1) and (6), ignore the reference to section 41A(2).In subsection (4), ignore the reference to section 8.If the third-country institution is FCA-regulated, ignore subsection (5)(a) unless the third-country institution has as a member of its immediate group a PRA-authorised person.
Section 42A (private sector purchaser: reverse property transfer)	In subsection (1), treat the reference to property, rights or liabilities of a bank as a reference to property, rights or liabilities of a third-country institution which form part of the business of a UK branch.In subsection (5), ignore the reference to section 8.If the third-country institution is FCA-regulated, ignore subsection (6)(a) unless the third-country institution has as a member of its immediate group a PRA-authorised person.
Section 43 (onward transfer)	In subsection (6), ignore the reference to section 8.If the third-country institution is FCA-regulated, ignore subsection (7)(a) unless the third-country institution has as a member of its immediate group a PRA-authorised person.
Section 44 (resolution company: reverse property transfer)	In subsection (5), ignore the reference to section 8.If the third-country institution is FCA-regulated, ignore subsection (6)(a) unless the third-country institution has as a member of its immediate group a PRA-authorised person.
Section 44A (bail-in: reverse property transfer)	Ignore section 44A.
Section 44BA (property transfer instruments and bail-in: supplementary matters)	Ignore section 44BA.
Section 44C (report on special bail-in provision)	In subsection (4), treat each reference to “on a liquidation” as a reference to “in insolvency proceedings”.In subsection (4)(a), treat the reference to “the liabilities of the bank” as a reference to “the relevant liabilities of the third-country institution” (and for this purpose, “relevant liability” has the meaning given in section 48B(17)).In subsection (4), after paragraph (b), insert “ and for the purposes of this subsection “insolvency proceedings” means such insolvency proceedings (whether or not under the law of a country or territory outside the United Kingdom) as the Bank of England, after consultation with the Treasury, considers relevant. ”
Sections 44D (bridge bank: supplemental property transfer powers) to 46 (temporary public ownership: reverse property transfer)	Ignore sections 44D to 46.
Section 47 (restriction of partial transfers)	In subsection (1), treat the reference to a bank as a reference to a third-country institution.In subsection (1A), treat the first reference to a bank as a reference to a third-country institution, and ignore the words “(even if it is not a bank)”.
Section 48A (creation of liabilities)	In subsection (1) ignore the reference to sections 44A(3)(b), 44D(3)(b), 44E(3)(b), 45(3)(b) and 46(3)(b).
Section 48C (meaning of “protected deposit”)	In subsection (4), treat the reference to section 48B(8)(a) as a reference to section 48B(10)(a).
Section 48D (general interpretation of section 48B)	In the definition of client assets, treat the reference to the bank as a reference to the third-country institution.
Section 48E (report on special bail-in provision)	Ignore section 48E.
Section 48F (power to amend definition of “excluded liabilities”)	In subsection (1) treat the reference to section 48B(8) as including a reference to section 48B(10).
Section 48H (business reorganisation plan)	Ignore section 48H.
Sections 48L (powers in relation to securities) to 48O (directions in or under resolution instruments)	Ignore sections 48L to 48O.
Section 48Q (continuity)	Treat references to a resolution instrument as references to a property transfer instrument within section 44B(2) that makes special bail-in provision under section 48B(1).
Section 48R (execution and registration of instruments, etc.)	Treat references to a resolution instrument as references to a property transfer instrument within section 44B(2) that makes special bail-in provision under section 48B(1).
Section 48S (resolution instruments: general matters)	Treat references to a resolution instrument as references to a property transfer instrument within section 44B(2) that makes special bail-in provision under section 48B(1).
Sections 48T (procedure) to 48WA (bail-in option: recovery of expenses)	Ignore sections 48T to 48WA.
Section 48Z (termination rights etc)	In subsection (1), in paragraph (a) of the definition of “crisis management measure”, treat the reference to the bank as including a reference to a UK branch.In subsection (6)(a), treat the first reference to the third-country institution as including a reference to the UK branch.
Section 57 (valuation principles)	In subsection (4) treat the reference to the bank as a reference to the third-country institution.
Section 60 (third party compensation)	In subsection (3)—(a) in paragraph (a) treat the second reference to a bank as including a reference to a third-country institution;(b) in paragraph (c) treat the reference to insolvency as including any proceedings under the law of the country or territory outside the United Kingdom in which the country or territory outside the United Kingdom institution is incorporated which are equivalent to the proceedings listed in paragraph (c).
Section 60B (principle of no less favourable treatment)	In subsection (1), treat the references to a bank as including references to a third-country institution.In subsection (2)(a) treat the reference to the bank as a reference to the UK branch.Ignore subsection (2)(b).In subsection (3), treat the references to a bank as references to a third-country institution.In subsection (4) treat the reference to insolvency as including any proceedings under the law of the country or territory outside the United Kingdom in which the third-country institution is incorporated which are equivalent to the proceedings listed in subsection (4).
Section 62A (independent valuer: sections 6E and 48X)	In subsection (1A) , treat the reference to the bank as including a reference to the third-country institution.
Sections 62B (resolution administrator) to 62E (resolution administrator: money)	Ignore sections 62B to 62E.
Section 63 (general continuity obligations: property transfers)	In subsection (1)(a)—(a) treat the second reference to a bank as a reference to a third-country institution;(b) treat the reference to “whose business” as a reference to the business of whose UK branch;(c) ignore the references to sections 41A(2) and 44D(2).In subsection (1)(d) treat the reference to the bank as a reference to the UK branch.In subsection (1A) treat the reference to insolvency as including any proceedings under the law of the country or territory outside the United Kingdom in which the third-country institution is incorporated which are equivalent to proceedings listed in subsection (1A).In subsection (4A)—(a) treat each reference to the bank as a reference to the third-country institution;(b) treat the reference to “whose business” as a reference to “the business of whose UK branch”.
Section 64 (special continuity obligations: property transfers)	Treat the references to contracts or other arrangements, in each place where they appear, as limited to contracts or other arrangements which were entered into by the third-country institution in relation to the business of its UK branch.
Section 65 (continuity obligations: onward property transfers)	In subsection (1), ignore paragraph (a)(ii).In subsection (3), ignore paragraph (b).In subsection (4), ignore paragraph (c), and in paragraph (d) treat the reference to “(a) to (c)” as a reference to “(a) or (b)”.
Sections 66 (share transfers) to 68 (continuity obligations: onward share transfers)	Ignore sections 66 to 68.
Section 70A (suspension of obligations)	For subsection (1), substitute—1The Bank of England may suspend obligations to make a payment, or delivery, under a contract where—aone of the parties to the contract is a third-country institution,bthe contract was entered into by the third-country institution in relation to the business of its UK branch, andcthe Bank is making a property transfer instrument in relation to the business of the UK branch..In subsection (3)(c) treat the reference to the bank under resolution as a reference to the third-country institution.In subsection (5), ignore the references to share transfer instruments, resolution instruments and third-country instruments.
Section 70B (restriction of security interests)	In subsection (1)—(a) treat the first reference to the bank as a reference to the UK branch and the second as a reference to the third-country institution;(b) treat the reference to assets of the bank as a reference to any property or rights of the third-country institution which form part of the business of the UK branch.In subsection (3), treat the reference to any asset of the bank under resolution as a reference to any property or rights of the third-country institution which form part of the business of the UK branch.In subsection (4), ignore the references to share transfer instruments, resolution instruments and third-country instruments.
Section 70C (suspension of termination rights)	For subsection (2), substitute—2A contract is a “qualifying contract” for the purpose of this section if—aone of the parties to the contract is a third-country institution, and the contract was entered into by the third-country institution in relation to the business of its UK branch,bthe Bank is making a property transfer instrument in relation to the business of the UK branch, andcall the obligations under the contract to make a payment, make delivery or provide collateral continue to be performed..Ignore subsection (3).In subsection (5), ignore the references to share transfer instruments, resolution instruments and third-country instruments.In subsection (6), ignore the words after paragraph (b).In subsection (7)—(a) treat the reference to the bank under resolution as a reference to the third-country institution;(b) ignore paragraph (b).In subsection (9)—(a) treat the reference to the bank under resolution as a reference to the third-country institution;(b) ignore the words “or the subsidiary undertaking”.
Section 71 (pensions)	Ignore section 71.
Section 76 (international obligation notice: general)	In subsections (1) and (3) treat the reference to exercising the power to make a resolution administrator appointment instrument or a mandatory reduction instrument or a stabilisation power as a reference to making a property transfer instrument.In subsections (1) and (4) treat the reference to a bank as a reference to a UK branch.Ignore subsection (5).
Section 77 (international obligation notice: resolution company)	In subsection (1), treat the reference to a bank's business as a reference to the business of a UK branch.
Section 78 (public funds: general)	In subsections (1) and (4) treat the reference to exercising the power to make a mandatory reduction instrument or a stabilisation power as a reference to making a property transfer instrument.In subsections (1) and (5), treat the reference to a bank as a reference to a UK branch.
Section 78A (pre-conditions for financial assistance)	Ignore section 78A.
Section 79 (public funds: resolution company)	In subsection (1), treat the reference to a bank's business as a reference to the business of a UK branch.
Section 79A (private sector purchaser: report)	In subsection (1), treat the reference to a bank's business as a reference to the business of a UK branch.In subsection (2) ignore the reference to share transfer instruments.
Section 80 (resolution company: report)	In subsection (1), treat the reference to a bank's business as a reference to the business of a UK branch.
Sections 80A (transfer for bail-in purposes) and 81 (temporary public ownership)	Ignore sections 80A and 81.
Section 81A (accounting information to be included in reports under section 80)	In subsection (1), ignore the references to sections 80A(2)(b) and 81.Ignore the references to the bank.
Sections 81AA to 81CA (groups)	Ignore sections 81AA to 81CA.
Section 81D (interpretation: “banking group company”)	In subsection (1)(a)—(a) ignore the reference to a bank and EU institution,(b) treat the reference to section 81B(9) as a reference to section 89JA(2)(c).
Sections 82 (temporary public ownership) and 83 (supplemental)	Ignore sections 82 and 83.
Section 83ZA (information)	For subsection (1), substitute—1This section only applies to information and documents reasonably required in connection with the making by the Bank of England of a property transfer instrument in relation to the UK branch of a third-country institution..In subsections (2) and (4) treat references to a bank or banking group company as references to a third-country institution.In subsections (7) and (10) treat references to a bank as references to a third-country institution.
Section 83ZB (reports by skilled persons)	In subsection (2) treat the references to a bank as a reference to a third-country institution.
Section 83ZC (appointment by persons to carry out general investigations)	In subsection (2)(a) treat the reference to the business of a bank as a reference to the business conducted by a UK branch.Ignore subsections (2)(c), (3) and (4).
Section 83ZE (investigations etc. in support of foreign resolution authorities)	Ignore section 83ZE.
Section 83ZL (entry of premises under warrant)	In subsection (3), treat each reference to a bank as a reference to a third-country institution.
Section 83ZR (regulatory sanctions)	In subsection (1)(d), where the third-country institution is an investment firm, treat the references to banks as references to investment firms.

Chapter 7 — General provisions

Partnerships

Special resolution regime

Rights in insolvency

Regulations

Quorum

Tenure

Weekly return

Regulations

256B

(1) In this Act references to the Bank of England do not include the Bank acting in its capacity as the Prudential Regulation Authority.

(2) For the interpretation of references to the Prudential Regulation Authority, see section 2A of the Financial Services and Markets Act 2000.

81ZZBA

(1) Without prejudice to the operation of section 81B, the Bank of England may exercise a stabilisation power in respect of a banking group company in accordance with section 11(2) or 12(2) if the following conditions are met.

(2) Condition 1 is that the banking group company is an undertaking incorporated in, or formed under the law of any part of, the United Kingdom.

(3) Condition 2 is that the banking group company is an entity within subsection (2A) of section 81AA.

(4) Condition 3 is that the PRA is satisfied that the banking group company is failing or likely to fail.

(5) Condition 4 is that the Bank of England is satisfied that, having regard to timing and other relevant circumstances, it is not reasonably likely that (ignoring the stabilisation powers) action will be taken by or in respect of the banking group company that will result in Condition 3 ceasing to be met.

(6) Condition 5 is that the Bank of England is satisfied that the exercise of the power in respect of the banking group company is necessary, having regard to the public interest in the advancement of one or more of the special resolution objectives.

(7) Condition 6 is that the Bank of England is satisfied that one or more of the special resolution objectives would not be met to the same extent by the winding up of the banking group company.

(8) Condition 7 (which applies only in a financial assistance case) is that—

(a) the Treasury have recommended the Bank of England to exercise a stabilisation power on the grounds that it is necessary to protect the public interest, and

(b) in the Bank of England’s opinion, exercise of the power in respect of the banking group company is an appropriate way to provide that protection.

(9) In exercising a stabilisation power in reliance on this section, the Bank of England must have regard to the need to minimise the effect of the exercise of the power on other undertakings in the same group.

(10) In this section “financial assistance case” has the meaning given in section 81B(8).

81ZZBB

(1) This section applies for the purposes of section 81ZZBA.

(2) The PRA must treat Condition 3 as met if satisfied that it would be met but for financial assistance provided by—

(a) the Treasury, or

(b) the Bank of England,

disregarding ordinary market assistance offered by the Bank of England on its usual terms.

(3) The Bank of England must treat Condition 4 as met if satisfied that it would be met but for financial assistance of the kind mentioned in subsection (2).

(4) For the purposes of Condition 3, a banking group company is failing or likely to fail if—

(a) it is contravening or likely to contravene a regulatory requirement where that contravention is serious in nature or directly related to a deterioration in the financial situation of the banking group company which threatens the viability of—

(i) the banking group company, or

(ii) another undertaking in the same resolution group,

(b) it is failing, or is likely to fail, to meet the approval conditions set out in section 192R(3) to (6) of the Financial Services and Markets Act 2000 in circumstances where that failure—

(i) would justify the taking of measures in relation to the company by the PRA under section 192T(1) of that Act, and

(ii) is serious in nature,

(d) the banking group company is unable to pay its debts or other liabilities as they fall due,

(e) paragraph (c) or (d) (or both) will, in the near future, apply to the banking group company, or

(f) extraordinary public financial support is required in respect of the banking group company and subsection (5) does not apply to it.

(5) This subsection applies where, in order to remedy a serious disturbance in the economy of the United Kingdom and preserve financial stability, the extraordinary financial support takes any of the following forms—

(a) a State guarantee to back liquidity facilities provided by the Bank of England,

(b) a State guarantee of newly issued liabilities,

(c) an injection of own funds, or purchase of capital instruments or liabilities, at prices and on terms that do not confer an advantage upon the banking group company, where none of the circumstances referred to in subsection (4)(a), (b), (c), (d) or (e) are present at the time the public support is granted and none of Cases 1 to 4 in section 6A apply.

(6) Before determining that Condition 3 is met, the PRA must consult the Bank of England.

(7) Before determining whether or not Conditions 4 and (where applicable) 7 are met, the Bank of England must consult—

(a) the Treasury,

(b) the PRA, and

(8) Before determining that Conditions 5 and 6 are met the Bank of England must consult—

(a) the Treasury,

(b) the PRA, and

(9) The special resolution objectives are not relevant to Conditions 3 and 4.

(10) In this section “regulatory requirement” means a requirement imposed—

(a) by or under the Financial Services and Markets Act 2000,

(b) by or under the capital requirements regulation including any assimilated law that was originally made under Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26th June 2013 on prudential requirements for credit institutions and investment firms,

(c) by any enactment which was relied on by the United Kingdom immediately before IP completion day to implement the capital requirements directive and its implementing measures or any assimilated law originally made under that directive, or

(d) by the Bank of England under this Act,

and for the purposes of this definition, “capital requirements directive” means Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.

81ZBB

(1) Without prejudice to the operation of section 81ZBA, the Bank of England may exercise a stabilisation power in respect of a banking group company in accordance with section 12ZA(3) if the following conditions are met.

(2) Condition 1 is that the banking group company is an undertaking incorporated in, or formed under the law of any part of, the United Kingdom.

(3) Condition 2 is that the banking group company is an entity within subsection (2A) of section 81AA.

(4) Condition 3 is that the PRA is satisfied that the banking group company is failing or likely to fail.

(5) Condition 4 is that the Bank of England is satisfied that, having regard to timing and other relevant circumstances, it is not reasonably likely that (ignoring the stabilisation powers) action will be taken by or in respect of the banking group company that will result in Condition 3 ceasing to be met.

(6) Condition 5 is that the power is exercised in connection with the exercise of one or more stabilisation powers in respect of the banking group company otherwise than for the purposes of the third stabilisation option.

(7) Condition 6 is that the Bank of England is satisfied that the exercise of the power in respect of the banking group company is necessary, having regard to the public interest in the advancement of one or more of the special resolution objectives.

(8) Condition 7 is that the Bank of England is satisfied that one or more of the special resolution objectives would not be met to the same extent by the winding up of the banking group company.

(9) Condition 8 (which applies only in a financial assistance case) is that—

(a) the Treasury have recommended the Bank of England to exercise a stabilisation power on the grounds that it is necessary to protect the public interest, and

(b) in the Bank of England’s opinion, exercise of the power in respect of the banking group company is an appropriate way to provide that protection.

(10) Condition 9 is that the Bank of England is satisfied that—

(a) the situation of the market for the assets which it is proposed to transfer by the exercise of the stabilisation power is of such a nature that the liquidation of those assets under normal insolvency proceedings could have an adverse effect on one or more financial markets,

(b) the transfer is necessary to ensure the proper functioning of the banking group company from which the transfer is to be made, or

(11) In this section—

“financial assistance case” has the meaning given in section 81B(8); ...

81ZBC

(1) This section applies for the purposes of section 81ZBB.

(2) The PRA must treat Condition 3 as met if satisfied that it would be met but for financial assistance provided by—

(a) the Treasury, or

(b) the Bank of England,

disregarding ordinary market assistance offered by the Bank of England on its usual terms.

(3) The Bank of England must treat Condition 4 as met if satisfied that it would be met but for financial assistance of the kind mentioned in subsection (2).

(4) For the purposes of Condition 3, a banking group company is failing or likely to fail if—

(a) it is contravening or likely to contravene a regulatory requirement where that contravention is serious in nature or directly related to a deterioration in the financial situation of the banking group company which threatens the viability of—

(i) the banking group company, or

(ii) another undertaking in the same resolution group,

(b) it is failing, or is likely to fail, to meet the approval conditions set out in section 192R(3) to (6) of the Financial Services and Markets Act 2000 in circumstances where that failure—

(i) would justify the taking of measures in relation to the company by the PRA under section 192T(1) of that Act, and

(ii) is serious in nature,

(d) the banking group company is unable to pay its debts or other liabilities as they fall due,

(e) paragraph (c) or (d) (or both) will, in the near future, apply to the banking group company, or

(f) extraordinary public financial support is required in respect of the banking group company and subsection (5) does not apply to it.

(5) This subsection applies where, in order to remedy a serious disturbance in the economy of the United Kingdom and preserve financial stability, the extraordinary financial support takes any of the following forms—

(a) a State guarantee to back liquidity facilities provided by the Bank of England,

(b) a State guarantee of newly issued liabilities,

(c) an injection of own funds, or purchase of capital instruments, at prices and on terms that do not confer an advantage upon the banking group company, where none of the circumstances referred to in subsection (4)(a), (b), (c), (d) or (e) are present at the time the public support is granted and none of Cases 1 to 4 in section 6A apply.

(6) Before determining that Condition 3 is met, the PRA must consult the Bank of England.

(7) Before determining whether or not Conditions 4, 5 and (where applicable) 8 are met, the Bank of England must consult—

(a) the Treasury,

(b) the PRA, and

(8) Before determining that Conditions 6 and 7 are met the Bank of England must consult—

(a) the Treasury,

(b) the PRA, and

(9) The special resolution objectives are not relevant to Conditions 3 and 4.

(10) In this section “regulatory requirement” means a requirement imposed—

(a) by or under the Financial Services and Markets Act 2000,

(b) by or under the capital requirements regulation including any assimilated law that was originally made under Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26th June 2013 on prudential requirements for credit institutions and investment firms,

(c) by any enactment which was relied on by the United Kingdom immediately before IP completion day to implement the capital requirements directive and its implementing measures or any assimilated law originally made under that directive, or

(d) by the Bank of England under this Act,

81BB

(1) Without prejudice to the operation of section 81BA, the Bank of England may exercise a stabilisation power in respect of a banking group company in accordance with section 12A(2) if the following conditions are met.

(2) Condition 1 is that the banking group company is an undertaking incorporated in, or formed under the law of any part of, the United Kingdom.

(3) Condition 2 is that the banking group company is an entity within subsection (2A) of section 81AA.

(4) Condition 3 is that the PRA is satisfied that the banking group company is failing or likely to fail.

(5) Condition 4 is that the Bank of England is satisfied that, having regard to timing and other relevant circumstances, it is not reasonably likely that (ignoring the stabilisation powers) action will be taken by or in respect of the banking group company that will result in Condition 3 ceasing to be met.

(6) Condition 5 is that the Bank of England is satisfied that the exercise of the power in respect of the banking group company is necessary, having regard to the public interest in the advancement of one or more of the special resolution objectives.

(7) Condition 6 is that the Bank of England is satisfied that one or more of the special resolution objectives would not be met to the same extent by the winding up of the banking group company.

(8) In exercising a stabilisation power in reliance on this section, the Bank of England must have regard to the need to minimise the effect of the exercise of the power on other undertakings in the same group.

81BC

(1) This section applies for the purposes of section 81BB.

(2) The PRA must treat Condition 3 as met if satisfied that it would be met but for financial assistance provided by—

(a) the Treasury, or

(b) the Bank of England,

disregarding ordinary market assistance offered by the Bank of England on its usual terms.

(3) The Bank of England must treat Condition 4 as met if satisfied that it would be met but for financial assistance of the kind mentioned in subsection (2).

(4) For the purposes of Condition 3, a banking group company is failing or likely to fail if—

(a) it is contravening or likely to contravene a regulatory requirement where that contravention is serious in nature or directly related to a deterioration in the financial situation of the banking group company which threatens the viability of—

(i) the banking group company, or

(ii) another undertaking in the same resolution group,

(b) it is failing, or is likely to fail, to satisfy the approval conditions set out in section 192R(3) to (6) of the Financial Services and Markets Act 2000 in circumstances where that failure—

(i) would justify the taking of measures in relation to the company by the PRA under section 192T(1) of that Act, and

(ii) is serious in nature,

(d) the banking group company is unable to pay its debts or other liabilities as they fall due,

(e) paragraph (c) or (d) (or both) will, in the near future, apply to the banking group company, or

(f) extraordinary public financial support is required in respect of the banking group company and subsection (5) does not apply to it.

(5) This subsection applies where, in order to remedy a serious disturbance in the economy of the United Kingdom and preserve financial stability, the extraordinary financial support takes any of the following forms—

(a) a State guarantee to back liquidity facilities provided by the Bank of England,

(b) a State guarantee of newly issued liabilities,

(c) an injection of own funds, or purchase of capital instruments, at prices and on terms that do not confer an advantage upon the banking group company, where none of the circumstances referred to in subsection (4)(a), (b), (c), (d) or (e) are present at the time the public support is granted and none of Cases 1 to 4 in section 6A apply.

(6) Before determining that Condition 3 is met, the PRA must consult the Bank of England.

(7) Before determining whether or not Condition 4 is met, the Bank of England must consult—

(a) the Treasury,

(b) the PRA, and

(8) Before determining that Conditions 5 and 6 are met the Bank of England must consult—

(a) the Treasury,

(b) the PRA, and

(9) The special resolution objectives are not relevant to Conditions 3 and 4.

(10) In this section “regulatory requirement” means a requirement imposed—

(a) by or under the Financial Services and Markets Act 2000,

(b) by or under the capital requirements regulation including any assimilated law that was originally made under Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26th June 2013 on prudential requirements for credit institutions and investment firms,

(c) by any enactment which was relied on by the United Kingdom immediately before IP completion day to implement the capital requirements directive and its implementing measures or any assimilated law originally made under that directive, or

(d) by the Bank of England under this Act,

Northern Ireland

Rights in insolvency

Information

Functions under this Act

Banknote regulations

Tenure

Immunity

Abolition for cheques

Supplemental

Recognised central counterparty rules

Status of bank administrator

Evidence

Scottish partnerships

Consequential provision

UK financial stability

Quorum

Supplemental

Index of defined terms

184A

(1) The Treasury may by order (“recognition order”) specify a DSA service provider as a recognised DSA service provider for the purposes of this Part.

(2) A recognition order under this section must specify in as much detail as is reasonably practicable the services provided.

(3) The Treasury may not specify a DSA service provider operated solely by the Bank of England.

185A

(1) The Treasury may make a recognition order in respect of a DSA service provider only if satisfied that any deficiencies in the services provided by the service provider, or any disruption to the provision of those services, would be likely—

(a) to threaten the stability of, or confidence in, the UK financial system, or

(b) to have serious consequences for business or other interests throughout the United Kingdom.

(2) In considering whether to specify a DSA service provider the Treasury must have regard to—

(a) the value of the services in relation to payment systems that the DSA service provider presently provides or is likely to provide in the future,

(b) the nature of the services in relation to payment systems that the DSA service provider provides,

(d) the relationship between the DSA service provider and—

(i) operators of payment systems that use digital settlement assets, and

(ii) other DSA service providers.

190A

(1) The Bank of England may require a recognised DSA service provider—

(a) to establish rules for the operation of services provided by the recognised DSA service provider;

(b) to establish rules for the operation of services provided by a service provider to the recognised DSA service provider;

(d) to notify the Bank of any proposed change to the rules;

(e) not to change the rules without the approval of the Bank.

(2) A requirement under subsection (1)(d) or (e) may be general or specific.

192A

(1) Where the first, second and third conditions are met, the Bank of England may give a direction under this section to the FCA.

(2) The first condition is that the FCA is proposing to exercise any of its powers in relation to—

(a) a recognised payment system that includes arrangements using digital settlement assets, or

(b) a recognised DSA service provider.

(3) The second condition is that the Bank of England is of the opinion that the exercise of the power in the manner proposed may—

(a) threaten the stability of the UK financial system,

(b) have serious consequences for business or other interests in the United Kingdom (including for the payment system or provider in relation to which the powers are proposed to be exercised), or

(4) The third condition is that the Bank of England is of the opinion that the giving of the direction is necessary in order to avoid an outcome mentioned in subsection (3).

(5) A direction under this section is a direction requiring the FCA not to exercise the power or not to exercise it in a specified manner.

(6) The direction may be expressed to have effect during a specified period or until revoked.

(7) The FCA is not required to comply with a direction under this section if or to the extent that in the opinion of the FCA compliance would be incompatible with any international obligation of the United Kingdom.

203C

(1) The Bank of England must prepare a statement of the general policy it proposes to follow in relation to its oversight under this Part of —

(a) recognised payment systems that include arrangements using digital settlement assets,

(b) DSA service providers, and

(2) Before issuing a statement of policy under this section, the Bank must consult the FCA.

(3) The Bank must —

(a) publish the statement on its website,

(b) send a copy to the Treasury, and

(4) Nothing in this section is to be regarded as preventing the Bank of England from exercising any of its powers under this Part where it considers it necessary to do so by reason of urgency, before it has prepared a statement under this section.

206AA

For the purposes of section 206A(3A), a person provides services connected with the system where—

(a) the person creates or issues the digital settlement assets involved in the payment system,

(b) the person provides services to safeguard, or to safeguard and administer, digital settlement assets including their private cryptographic keys (or means of access),

(d) the person is a digital settlement asset exchange provider,

(e) the person sets rules, standards, or conditions of access or participation in relation to the payment system, or

(f) the person provides any service that facilitates, or supports, a transfer of money or digital settlement assets to be made using the payment system, including any infrastructure provider in relation to the system.

PART 5A — Wholesale cash distribution

Introduction

Overview and purpose

206C

(1) This Part enables the Bank of England to oversee certain persons involved in wholesale cash distribution (as defined in section 206E).

(2) The Bank must exercise its powers under this Part for the purpose of managing risks to the effectiveness, resilience and sustainability of wholesale cash distribution—

(a) throughout the United Kingdom, or

(b) throughout any part of the United Kingdom.

206D

(1) The Bank of England—

(a) must prepare a statement of its policy with respect to the exercise of its powers under this Part,

(b) must from time to time review the statement, and

(2) When preparing a statement under this section, the Bank must consult such persons as appear to the Bank to be representative of persons likely to be affected by the statement.

(3) After preparing a statement under this section the Bank must—

(a) provide the statement to the Treasury, and

(b) publish the statement.

(4) The Treasury must lay a copy of each statement received under this section before Parliament.

(5) No power conferred on the Bank by this Part may be exercised before a statement under this section has been published.

Interpretation: “wholesale cash distribution”

206E

(1) In this Part—

“wholesale cash distribution” means the arrangements (taken as a whole) by which banknotes issued by an issuing authority, or coins made by the Mint, are—made available for retail cash distribution, andremoved from circulation;

“wholesale cash distribution activities” are activities intended to facilitate or control wholesale cash distribution and include (but are not limited to)—purchasing cash from issuing authorities or the Mint;storing cash;transporting cash;undertaking authentication processes;facilitating the return of cash to issuing authorities or the Mint.

(2) For these purposes—

“authorised bank” has the meaning given by section 210;

“banknote” has the meaning given by section 208;

“cash” means—banknotes issued by the Bank of England, or an authorised bank in its capacity as an issuer of banknotes in Scotland or Northern Ireland, orcoins made by the Mint, within the meaning of the Coinage Act 1971 (see section 11 of that Act);

“issue”, in relation to banknotes, has the meaning given by section 209;

“issuing authority” means—the Bank of England, oran authorised bank in its capacity as an issuer of banknotes in Scotland or Northern Ireland;

“retail cash distribution” means arrangements for the provision of cash to end users of cash.

Interpretation: other terms

206F

(1) In this Part—

“FCA” means the Financial Conduct Authority;

“FCA-regulated person” means—a person who has Part 4A permission,an authorised payment institution or small payment institution, within the meaning of the Payment Services Regulations 2017 (S.I. 2017/752), oran authorised electronic money institution or small electronic money institution, within the meaning of the Electronic Money Regulations 2011 (S.I. 2011/99);

“Part 4A permission” has the meaning given by section 55A of the Financial Services and Markets Act 2000;

“the Payment Systems Regulator” means the Payment Systems Regulator established under section 40 of the Financial Services (Banking Reform) Act 2013;

“PRA” means the Prudential Regulation Authority;

“PRA-regulated activity” has the meaning given by section 22A of the Financial Services and Markets Act 2000;

“the UK financial system” has the meaning given by section 1I of the Financial Services and Markets Act 2000.

(2) For the purposes of this Part, a company (within the meaning of the Companies Act 2006) is wholly owned by the Crown if, and only if, every member of the company is—

(a) a Minister of the Crown, government department or company wholly owned by the Crown, or

(b) a person acting on behalf of a Minister of the Crown, government department or company wholly owned by the Crown.

Recognised persons

Wholesale cash oversight orders

206G

(1) The Treasury may by order (a “wholesale cash oversight order”) specify a person as a recognised person for the purposes of this Part.

(2) A person may be specified only if the person—

(a) performs a relevant function in relation to a wholesale cash distribution activity, and

(b) is recognised as having market significance (see section 206H).

(3) The following are relevant functions in relation to a wholesale cash distribution activity—

(a) undertaking the activity;

(b) managing the activity;

(d) providing financial assistance in relation to the activity.

(4) A wholesale cash oversight order must specify in as much detail as is reasonably practicable—

(a) each wholesale cash distribution activity in relation to which the specified person performs a relevant function, and

(b) each relevant function the person performs.

(5) The Treasury may not make a wholesale cash oversight order in respect of an issuing authority or the Mint.

“Market significance” and “systemic significance”

206H

(1) A wholesale cash oversight order must specify whether the person in respect of whom the order is made is recognised—

(a) as having market significance only, or

(b) as also having systemic significance.

(2) The Treasury may recognise a person as having market significance only if satisfied that any significant deficiency in, or disruption to, the performance of the person’s relevant functions in relation to wholesale cash distribution activities would be likely to undermine the effectiveness, resilience, or sustainability of wholesale cash distribution—

(a) throughout the United Kingdom, or

(b) throughout any part of the United Kingdom.

(3) The Treasury may recognise a person as having systemic significance only if satisfied that any significant deficiency in, or disruption to, the performance of the person’s relevant functions in relation to wholesale cash distribution activities would be likely (in addition to the consequences mentioned in subsection (2))—

(a) to threaten the stability of, or confidence in, the UK financial system, or

(b) to have serious consequences for business or other interests throughout the United Kingdom or any part of the United Kingdom.

(4) Where a person is part of a group, the Treasury may have regard to functions performed by other members of the group when determining matters mentioned in subsection (2) or (3).

(5) In subsection (4), “group” has the meaning given by section 421 of the Financial Services and Markets Act 2000.

(6) The Treasury must not recognise a company wholly owned by the Crown as having systemic significance.

Procedure

206I

(1) Before making a wholesale cash oversight order in respect of a person the Treasury must—

(a) consult the Bank of England,

(b) notify the person, and

(2) In addition, the Treasury must—

(a) consult the FCA before making a wholesale cash oversight order in respect of a person who is, or has applied to be, an FCA-regulated person;

(b) consult the PRA before making a wholesale cash oversight order in respect of a person who has, or has applied for, Part 4A permission for the carrying on of a PRA-regulated activity;

(c) consult the Payment Systems Regulator before making a wholesale cash oversight order in respect of a person who is a participant in a regulated payment system.

(3) In subsection (2)(c), “participant” and “regulated payment system” have the same meanings as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 110 of that Act).

(4) In considering whether to make the order, the Treasury may rely on information provided by—

(a) the Bank of England;

(b) the FCA;

(d) the Payment Systems Regulator.

206J

(1) The Treasury may amend or revoke a wholesale cash oversight order.

(2) The Treasury must revoke a wholesale cash oversight order if no longer satisfied that the person specified in the order—

(a) performs a relevant function in relation to a wholesale cash distribution activity, and

(b) has market significance.

(3) If a person is specified in a wholesale cash oversight order as having systemic significance, the Treasury must amend the order (so that the person is specified as having market significance only) if—

(a) satisfied that the person continues to have market significance, but

(b) no longer satisfied that the person has systemic significance.

(4) Subject to subsections (2) and (3), the Treasury must consider any request by a person specified in a wholesale cash oversight order for the amendment or revocation of the order.

(5) Section 206I (procedure) applies to the amendment or revocation of a wholesale cash oversight order as it applies to the making of the order.

Regulation

Principles

206K

(1) The Bank of England may publish principles to which recognised persons must have regard in performing relevant functions in relation to wholesale cash distribution activities.

(2) Different principles may be published in relation to—

(a) different wholesale cash distribution activities;

(b) different relevant functions;

(3) Before publishing such principles, the Bank must—

(a) consult such persons as appear to the Bank to be representative of persons likely to be affected by the principles, and

(b) obtain the approval of the Treasury.

Codes of practice

206L

(1) The Bank of England may publish codes of practice about the performance by recognised persons of relevant functions in relation to wholesale cash distribution activities.

(2) Different codes of practice may be published in relation to—

(a) different wholesale cash distribution activities;

(b) different relevant functions;

(3) Before publishing a code of practice, the Bank of England must consult such persons as appear to the Bank to be representative of persons likely to be affected by the code.

Directions

206M

(1) The Bank of England may give directions in writing to a recognised person.

(2) A direction may—

(a) require or prohibit the taking of specified action in relation to the performance of a specified relevant function in relation to a specified wholesale cash distribution activity;

(b) set standards to be met in the performance of a specified relevant function in relation to a specified wholesale cash distribution activity.

(3) Subsection (4) applies if a direction is given to a recognised person for the purpose of resolving or reducing a threat to the stability of the UK financial system.

(4) The recognised person (including the recognised person’s officers and staff) has immunity from liability in damages in respect of action or inaction in accordance with the direction.

(5) A direction given for the purpose mentioned in subsection (3) must—

(a) include a statement that it is given for that purpose, and

(b) inform the recognised person of the effect of subsection (4).

(6) The Treasury may by regulations confer immunity on any person from liability in damages in respect of action or inaction in accordance with a direction under this section (including a direction given for the purpose mentioned in subsection (3)).

(7) Regulations under subsection (6)—

(a) are to be made by statutory instrument, and

(b) are subject to annulment in pursuance of a resolution of either House of Parliament.

(8) An immunity conferred by or under this section does not extend to action or inaction—

(a) in bad faith, or

(b) in contravention of section 6(1) of the Human Rights Act 1998.

(9) In this section, “specified” means specified in the direction.

206N

(1) In exercising powers under this Part, the Bank of England must have regard to any action that the FCA, PRA or Payment Systems Regulator has taken or could take.

(2) The Bank of England must—

(a) consult the FCA before taking action under this Part in respect of a person who is, or has applied to be, an FCA-regulated person;

(b) consult the PRA before taking action under this Part in respect of a person who has, or has applied for, Part 4A permission for the carrying on of a PRA-regulated activity;

(c) consult the Payment Systems Regulator before taking action under this Part in respect of a participant in a regulated payment system.

(3) In subsection (2)(c), “participant” and “regulated payment system” have the same meanings as in Part 5 of the Financial Services (Banking Reform) Act 2013 (see section 110 of that Act).

(4) If the FCA, PRA or Payment Systems Regulator gives the Bank of England notice that it is considering taking action in respect of a person mentioned in subsection (2), the Bank may not take action under this Part in respect of the person unless—

(a) the FCA, PRA or Payment Systems Regulator (as the case may be) consents, or

(b) the notice is withdrawn.

Enforcement

Inspection

206O

(1) The Bank of England may appoint one or more persons to inspect the performance by a recognised person of a relevant function in relation to a wholesale cash distribution activity.

(2) A recognised person who performs a relevant function in relation to a wholesale cash distribution activity must—

(a) grant an inspector access, on request and at any reasonable time, to premises on or from which any part of the function is performed, and

(b) otherwise co-operate with an inspector.

206P

(1) A justice of the peace may, on the application of an inspector appointed under section 206O, issue a warrant entitling an inspector or a constable to enter premises if—

(a) there is performed on the premises any part of a relevant function in relation to a wholesale cash distribution activity, and

(b) any of the following conditions is satisfied.

(2) Condition 1 is that—

(a) a requirement under section 206Z3 (information) in relation to the relevant function has not been complied with, and

(b) there is reason to believe that information relevant to the requirement is on the premises.

(3) Condition 2 is that there is reason to suspect that if a requirement under section 206Z3 were imposed in relation to the relevant function in respect of information on the premises—

(a) the requirement would not be complied with, and

(b) the information would be destroyed or otherwise tampered with.

(4) Condition 3 is that an inspector—

(a) gave reasonable notice of a wish to enter the premises, and

(b) was refused entry.

(5) Condition 4 is that a person occupying or managing the premises has failed to co-operate with an inspector.

(6) A warrant—

(a) permits an inspector or a constable to enter the premises,

(b) permits an inspector or a constable to search the premises and copy or take possession of information or documents, and

(7) Sections 15(5) to (8) and 16 of the Police and Criminal Evidence Act 1984 (warrants: procedure) apply to warrants under this section.

(8) In the application of this section to Scotland—

(a) the reference to a justice of the peace includes a reference to a sheriff, and

(b) ignore subsection (7).

(9) In the application of this section to Northern Ireland—

(a) the reference to a justice of the peace is a reference to a lay magistrate, and

(b) the reference to sections 15(5) to (8) and 16 of the Police and Criminal Evidence Act 1984 is a reference to the equivalent provisions of the Police and Criminal Evidence (Northern Ireland) Order 1989.

Independent report

206Q

(1) The Bank of England may require a recognised person who performs a relevant function in relation to a wholesale cash distribution activity to appoint an expert to report on the performance of the function.

(2) The Bank may impose a requirement only if it thinks—

(a) the person is not having sufficient regard to principles published by the Bank under section 206K,

(b) the person is failing to comply with a code of practice under section 206L, or

(3) The Bank may impose requirements about—

(a) the nature of the expert to be appointed;

(b) the content of the report;

(d) timing.

206R

In this Part “compliance failure” means a failure by a recognised person to—

(a) comply with a code of practice under section 206L,

(b) comply with a direction under section 206M, or

Publication

206S

The Bank of England may publish details of—

(a) a compliance failure by a recognised person;

(b) a sanction imposed under sections 206T to 206V.

Penalty

206T

(1) The Bank of England may require a recognised person to pay a penalty in respect of a compliance failure.

(2) A penalty—

(a) must be paid to the Bank, and

(b) may be enforced by the Bank as a civil debt owed to the Bank.

(3) The Bank must prepare a statement of the principles which it will apply in determining—

(a) whether to impose a penalty, and

(b) the amount of a penalty.

(4) The Bank must—

(a) publish the statement on its website,

(b) send a copy to the Treasury,

(c) review the statement from time to time and revise it if necessary (and paragraphs (a) and (b) apply to a revision), and

(d) in applying the statement to a compliance failure, apply the version in force when the failure occurred.

Closure

206U

(1) This section applies if the Bank of England thinks that a compliance failure by a person recognised for the purposes of this Part as having systemic significance—

(a) threatens the stability of, or confidence in, the UK financial system, or

(b) has serious consequences for business or other interests throughout the United Kingdom.

(2) The Bank may give the person an order (a “closure order”) to stop performing specified relevant functions in relation to specified wholesale cash distribution activities—

(a) for a specified period,

(b) until further notice, or

(3) Before giving a closure order to a recognised person, the Bank must have regard to the public interest in the continued performance by the person of relevant functions (whether or not specified) in relation to wholesale cash distribution activities (whether or not specified).

(4) A recognised person who fails to comply with a closure order commits an offence.

(5) A person who commits an offence under this section is liable—

(a) on summary conviction in England and Wales, to a fine;

(b) on summary conviction in Scotland, to a fine not exceeding the statutory maximum;

(d) on conviction on indictment, to a fine.

(6) In this section, “specified” means specified in the closure order.

Management disqualification

206V

(1) The Bank of England may by order prohibit a specified person from holding an office or position involving responsibility for taking decisions about the management of a recognised person—

(a) for a specified period,

(b) until further notice, or

(2) A person who breaches a prohibition under subsection (1) commits an offence.

(3) A person who commits an offence under this section is liable—

(a) on summary conviction in England and Wales, to a fine;

(b) on summary conviction in Scotland, to a fine not exceeding the statutory maximum;

(d) on conviction on indictment, to a fine.

(4) In this section, “specified” means specified in the order.

Warning

206W

(1) Before imposing a sanction on a person the Bank of England must—

(a) give the person a notice (“a warning notice”),

(b) give the person at least 21 days from the date of the notice to make representations,

(d) as soon as reasonably practicable, give the person a notice stating whether the Bank intends to impose the sanction.

(2) In subsection (1), “imposing a sanction” means—

(a) publishing details under section 206S;

(b) requiring the payment of a penalty under section 206T;

(d) making an order under section 206V.

(3) Despite subsection (1), if satisfied that it is necessary, the Bank may without notice—

(a) give a closure order under section 206U, or

(b) make an order under section 206V.

Appeal

206X

(1) Where the Bank of England notifies a person under section 206W (1) that it intends to impose a sanction, the person may appeal to the Upper Tribunal.

(2) Where the Bank imposes a sanction on a person without notice in reliance on section 206W (3), the person may appeal to the Upper Tribunal.

(3) The Bank of England may not impose a sanction while an appeal under this section could be brought or is pending.

Injunctions

206Y

(1) If, on the application of the Bank of England, the court is satisfied—

(a) that there is a reasonable likelihood that there will be a compliance failure, or

(b) that there has been a compliance failure and there is a reasonable likelihood that it will continue or be repeated,

the court may make an order restraining the conduct constituting the failure.

(2) If, on the application of the Bank of England, the court is satisfied—

(a) that there has been a compliance failure by a recognised person, and

(b) that there are steps which could be taken for remedying the failure,

the court may make an order requiring the recognised person, and any other person who appears to have been knowingly concerned in the failure, to take such steps as the court may direct to remedy it.

(3) If, on the application of the Bank of England, the court is satisfied—

(a) that there may have been a compliance failure by a recognised person, or

(b) that any other person may have been knowingly concerned in a compliance failure,

the court may make an order restraining the person from dealing with any assets which it is satisfied the person is reasonably likely to deal with.

(4) The jurisdiction conferred by this section is exercisable—

(a) in England and Wales and Northern Ireland, by the High Court;

(b) in Scotland, by the Court of Session.

(5) In this section—

(a) references to an order restraining anything are, in Scotland, to be read as references to an interdict prohibiting that thing;

(b) references to an order requiring steps to be taken are, in Scotland, to be read as references to an order for specific performance under section 45 of the Court of Session Act 1988;

(d) references to dealing with assets include disposing of them.

Miscellaneous

Fees

206Z

(1) The Bank of England may require a recognised person to pay fees.

(2) A requirement under subsection (1) must relate to a scale of fees approved by the Treasury by regulations.

(3) Regulations under subsection (2)—

(a) are to be made by statutory instrument, and

(b) are subject to annulment in pursuance of a resolution of either House of Parliament.

(4) A requirement under subsection (1) may be enforced by the Bank as a civil debt owed to the Bank.

206Z1

The Bank of England must maintain satisfactory arrangements for—

(a) recording decisions made in the exercise of functions under this Part, and

(b) the safe-keeping of those records which it considers ought to be preserved.

206Z2

(1) At least once a year the Bank of England must make a report to the Treasury on—

(a) the discharge of its functions under this Part, and

(b) such other matters as the Treasury may from time to time direct.

(2) A report on the discharge of the Bank’s functions under this Part must, in particular, include the Bank’s opinion as to—

(a) the extent to which risks to the effectiveness, resilience and sustainability of wholesale cash distribution throughout the United Kingdom, or throughout any part of the United Kingdom, have been managed, and

(b) the extent to which, in relation to the exercise of functions in relation to persons recognised as having systemic significance, risks to the stability of the UK financial system have been managed.

(3) This section does not require the inclusion in a report of any information the publication of which would, in the opinion of the Bank, be against the public interest.

(4) The Treasury must lay before Parliament a copy of each report received under this section.

Requirement to provide information

206Z3

(1) The Bank of England may by notice in writing require a person to provide information—

(a) which the Bank thinks will help the Treasury in determining whether to make a wholesale cash oversight order, or

(b) which the Bank otherwise requires in connection with its functions under this Part.

(2) The Bank of England may by notice in writing require a person who performs a relevant function in relation to wholesale cash distribution activity to provide information which the Bank requires in connection with the exercise of its functions (whether under this Part or otherwise) in pursuance of—

(a) the purpose mentioned in section 206C (2), or

(b) the Bank’s Financial Stability Objective (see section 2A of the Bank of England Act 1998).

(3) In particular, a notice under subsection (1) or (2) may require the person to notify the Bank if events of a specified kind occur.

(4) A notice under subsection (1) or (2) may require information to be provided—

(a) in a specified form or manner;

(b) at, or by, a specified time;

(5) It is an offence—

(a) to fail without reasonable excuse to comply with a requirement under this section;

(b) knowingly or recklessly to give false information in pursuance of this section.

(6) A person who commits an offence under this section is liable—

(a) on summary conviction in England and Wales, to a fine;

(b) on summary conviction in Scotland, to a fine not exceeding the statutory maximum;

(d) on conviction on indictment, to a fine.

(7) In this section, “specified” means specified in the notice.

Disclosure of information

206Z4

(1) The Bank of England may disclose information obtained by virtue of section 206Z3 to—

(a) the Treasury;

(b) the FCA;

(d) the Mint.

(2) Subsection (1)—

(a) overrides a contractual or other requirement to keep information in confidence, and

(b) is without prejudice to any other power to disclose information.

(3) The Treasury may by regulations—

(a) permit the disclosure by the Bank of information obtained by virtue of section 206Z3 to specified persons;

(b) permit the publication of specified information and make provision about the manner and extent of publication.

(4) In subsection (3), “specified” means specified in the regulations.

(5) Regulations under subsection (3)—

(a) are to be made by statutory instrument, and

(b) are subject to annulment in pursuance of a resolution of either House of Parliament.

206Z5

Nothing in this Part prevents the Bank of England—

(1) from having dealings with persons who are not recognised persons for the purposes of this Part;

(a) from having dealings with recognised persons other than through the provisions of this Part.

Companies wholly owned by the Crown

Power to disapply regulation and enforcement provisions

206Z6

(1) The Treasury may by regulations provide for any provision of sections 206K to 206Z4 not to apply (insofar as it would otherwise do so), or to apply with modifications, in relation to recognised persons that are companies wholly owned by the Crown.

(2) Regulations under subsection (1) may modify legislation (including any provision of, or made under, this Act).

(3) In subsection (2)—

“legislation” means primary legislation, subordinate legislation (within the meaning of the Interpretation Act 1978) and assimilated direct legislation, but does not include rules or other instruments made by any regulator;

“modify” includes amend, repeal or revoke.

(4) Before making regulations under this section, the Treasury must consult the Bank of England.

(5) Regulations under subsection (1)—

(a) are to be made by statutory instrument, and

(b) may not be made unless a draft has been laid before, and approved by a resolution of, each House of Parliament.

Insolvency Proceedings

Partnerships

Special resolution regime

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