[Groups]U.K.
[81BSale to commercial purchaser and transfer to bridge bankU.K.
(1)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 PRA is satisfied that the general conditions for the exercise of a stabilisation power set out in section 7 are met in respect of a bank in the same group.
(3)Condition 2 (which does not apply in a financial assistance case) 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—
(a)the stability of the financial systems of the United Kingdom,
(b)the maintenance of public confidence in the stability of those systems,
(c)the protection of depositors, or
(d)the protection of any client assets that may be affected.
(4)Condition 3 (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's opinion, exercise of the power in respect of the banking group company is an appropriate way to provide that protection.
(5)Condition 4 is that the banking group company is an undertaking incorporated in, or formed under the law of any part of, the United Kingdom.
(6)Before determining whether Condition 2 or 3 (as appropriate) is met, the Bank of England must consult—
(a)the Treasury,
(b)the PRA, and
(c)the FCA.
(7)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.
(8)In this section “financial assistance case” means a case in which the Treasury notify the Bank of England that they have provided financial assistance in respect of a bank in the same group for the purpose of resolving or reducing a serious threat to the stability of the financial systems of the United Kingdom.
81CSection 81B: supplementalU.K.
(1)In the following provisions references to banks include references to banking group companies—
(a)section 10(1), and
(b)section 75(5)(a).
(2)Where the Bank of England exercises a stabilisation power in respect of a banking group company in reliance on section 81B, the provisions relating to the stabilisation powers and the bank administration procedure contained in this Act (except sections 7 and 8) and any other enactment apply (with any necessary modifications) as if the banking group company were a bank.
(3)For the purposes of the application of section 143 (grounds for applying for bank administration order), the reference in subsection (2) to the Bank of England exercising a stabilisation power includes a case where the Bank of England intends to exercise such a power.
81DInterpretation: “banking group company” &c.U.K.
(1)In this Part “banking group company” means an undertaking—
(a)which is (or, but for the exercise of a stabilisation power, would be) in the same group as a bank, and
(b)in respect of which any conditions specified in an order made by the Treasury are met.
(2)An order may require the Bank of England to consult specified persons before determining whether the conditions are met.
(3)An order—
(a)is to be made by statutory instrument, and
(b)may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.
(4)If an order contains a statement that the Treasury are of the opinion that, by reason of urgency, it is necessary to make the order without complying with subsection (3)(b)—
(a)the order may be made, and
(b)the order lapses unless approved by resolution of each House of Parliament during the period of 28 days (ignoring periods of dissolution, prorogation or adjournment of either House for more than 4 days) beginning with the day on which the order is made.
(5)The lapse of an order under subsection (4)(b)—
(a)does not invalidate anything done under or in reliance on the order before the lapse and at a time when neither House has declined to approve the order, and
(b)does not prevent the making of a new order (in new terms).
(6)Undertakings are in the same group for the purposes of sections 81B, 81C and this section if they are group undertakings in respect of each other.
(7)Expressions defined in the Companies Act 2006 have the same meaning in section 81B and this section as in that Act.]
82Temporary public ownershipU.K.
(1)The Treasury may take a parent undertaking of a bank (the “holding company”) into temporary public ownership, in accordance with section 13(2), if the following conditions are met.
(2)Condition 1 is that [the PRA is] satisfied that the general conditions for the exercise of a stabilisation power set out in section 7 are met in respect of the bank.
(3)Condition 2 is that the Treasury are satisfied that it is necessary to take action in respect of the holding company for the purpose specified in Condition A or B of section 9.
(4)Condition 3 is that the holding company is an undertaking incorporated in, or formed under the law of any part of, the United Kingdom.
(5)Before determining whether Condition 2 is met the Treasury must consult—
[(a)the PRA,
(aa)the FCA, and]
(b)the Bank of England.
(6)Expressions used in this section have the same meaning as in the Companies Act 2006.
Textual Amendments
Commencement Information
83SupplementalU.K.
(1)In the following provisions references to banks include references to holding companies—
(a)section 10(1),
(b)section 13(3),
(c)section 16(1), and
(d)section 75(5)(a).
(2)Where the Treasury take a bank's holding company into temporary public ownership in reliance on section 82—
(a)section 20(2) applies to (i) directors of the holding company, (ii) directors of the bank, and (iii) directors of a bank in the same group,
(b)section 25(2) applies as if references to a bank were references to a holding company,
(c)sections 27 to 29 apply as if references to a bank were references to a holding company,
(d)a share transfer may be made in respect of securities which were issued by the bank or by another bank which is or was in the same group; and a transfer—
(i)shall be made by onward share transfer order under section 28 or by reverse share transfer order under section 29 (in addition to any that may be made under those sections as applied by paragraph (c) above),
(ii)may be made under section 28 only in respect of securities held by (or for the benefit of) the holding company or a subsidiary undertaking of the holding company,
(iii)is not subject to section 28(4), [and]
[(iv)is not subject to the restriction in section 29(3) that the securities issued by the bank were transferred under the original order (as defined in section 29(1)).]
(e)section 45 applies as if—
(i)the reference to a bank in subsection (1) were a reference to a holding company, and
(ii)a reference to the bank in subsection (3) were a reference to the holding company, the bank and any other bank which is or was in the same group,
(f)sections 65 to 68 apply, with—
(i)references to the bank or the transferred bank taken as references to the bank, the holding company and any other bank which is or was in the same group, and
(ii)references to securities of the bank taken as including references to securities of the holding company (so that, in particular, sections 65(1)(a)(ii) and 68(1)(a) include references to the earlier transfer of securities issued by the holding company),
(g)other provisions of this Act about share transfer orders apply with any necessary modifications,
(h)section 214B of the Financial Services and Markets Act 2000 applies (contribution to costs of special resolution regime...), and
(i)the reference in section 214B(1)(b) to the bank, and later references in the section, are treated as including references to any other bank which is also a subsidiary undertaking of the holding company (but not to the holding company itself).
(3)A reference in this Act or another enactment to a share transfer order in respect of securities issued by a bank includes (so far as the context permits) a reference to a share transfer order in respect of securities issued by a holding company.
(4)In so far as sections 47 and 60 apply in relation to orders treated as property transfer instruments by virtue of section 45(5)(b) or 46(5)(b) (including those sections as applied by virtue of subsection (2) above) the reference in section 47(1) to the property of a bank includes a reference to the property of a holding company and of any other bank which is or was in the same group.
(5)Expressions used in this section have the same meaning as in the Companies Act 2006.
(6)A reference to two banks being in the same group is a reference to their being group undertakings in respect of each other.
Textual Amendments
Commencement Information