PART 3Bail-in stabilisation option

17Bail-in stabilisation option

1

Schedule 2 (which contains amendments relating to a new stabilisation option in Part 1 of the Banking Act 2009) has effect.

2

The Treasury may by order make any provision they consider appropriate in consequence of the application to building societies of the amendments made by this Part.

3

An order may, in particular—

a

enable the Bank of England, for the purpose of enabling it to exercise in relation to the business of a building society any of the powers exercisable as a result of the amendments made by this Part—

i

to convert the building society into a company, or

ii

to transfer the business of the building society to a company which immediately before the transfer is owned by the Bank or by a person of a description specified in the order;

b

enable the Bank of England, in connection with the exercise of a power conferred by virtue of paragraph (a), to cancel membership rights or shares in the building society;

c

provide for any power exercisable as a result of the amendments made by this Part to be exercisable in relation to the company—

i

into which the building society is converted, or

ii

to which the business of the building society is transferred;

d

enable the Bank of England, in a case where it has transferred the business of a building society by virtue of paragraph (a)(ii), to dissolve the building society at any time after the transfer;

e

confer functions on the Treasury, the Bank of England, the FCA, the PRA or a bail-in administrator;

f

make further amendments of Part 1 of the Banking Act 2009;

g

amend or modify the effect of the Building Societies Act 1986 or any other enactment to which this subsection applies.

4

Subsection (3) applies to any enactment (including a fiscal enactment) passed or made—

a

before the passing of this Act, or

b

on or before the last day of the Session in which this Act is passed.

5

In this section—

  • “bail-in administrator” is to be read in accordance with section 12B of the Banking Act 2009 (as inserted by paragraph 2 of Schedule 2);

  • “building society” has the same meaning as in section 84 of the Banking Act 2009;

  • “company” means a company as defined in section 1(1) of the Companies Act 2006 which is a public company limited by shares.