(1)The Secretary of State may by regulations provide that the general law of insolvency has effect in relation to charges of such descriptions as may be specified in the regulations, and action taken in enforcing them, subject to such provisions as may be specified in the regulations.
(2)The regulations may specify any description of charge granted in favour of—
(a)a body approved under section 170 (certain overseas exchanges and clearing houses),
(b)a person included in the list maintained by the Bank of England for the purposes of section 171 (certain money market institutions),
(c)the Bank of England,
(d)an authorised person within the meaning of the [1986 c. 60.] Financial Services Act 1986, or
(e)an international securities self-regulating organisation within the meaning of that Act,
for the purpose of securing debts or liabilities arising in connection with or as a result of the settlement of contracts or the transfer of assets, rights or interests on a financial market.
(3)The regulations may specify any description of charge granted for that purpose in favour of any other person in connection with exchange facilities or clearing services provided by a recognised investment exchange or recognised clearing house or by any such body, person, authority or organisation as is mentioned in subsection (2).
(4)Where a charge is granted partly for the purpose specified in subsection (2) and partly for other purposes, the power conferred by this section is exercisable in relation to the charge so far as it has effect for that purpose.
(5)The regulations may—
(a)make the same or similar provision in relation to the charges to which they apply as is made by or under sections 174 and 175 in relation to market charges, or
(b)apply any of those provisions with such exceptions, additions or adaptations as are specified in the regulations.
(6)Before making regulations under this section relating to a description of charges defined by reference to their being granted—
(a)in favour of a person included in the list maintained by the Bank of England for the purposes of section 171, or in connection with exchange facilities or clearing services provided by a person included in that list, or
(b)in favour of the Bank of England, or in connection with settlement arrangements provided by the Bank,
the Secretary of State shall consult the Treasury and the Bank of England.
(7)Regulations under this section may provide that they apply or do not apply to a charge if or to the extent that it secures obligations of a specified description, is a charge over property of a specified description or contains provisions of a specified description.