SCHEDULES

F1SCHEDULE 17A Further provision in relation to exercise of Part 18 functions by Bank of England

Part 3Winding up, administration or insolvency of recognised clearing houses

Power to give directions to insolvency practitioner

35

(1)

This paragraph applies where a person has been appointed to act as an insolvency practitioner (within the meaning of section 388 of the Insolvency Act 1986 or Article 3 of the Insolvency (Northern Ireland) Order 1989) in relation to a company which is, or has been, a F2recognised clearing house F3or a recognised CSD.

(2)

The Bank of England may give directions to the person if satisfied that it is desirable to give the directions, having regard to the public interest in—

(a)

protecting and enhancing the stability of the UK financial system,

(b)

protecting and enhancing public confidence in the stability of the UK financial system, F4...

(c)

F5in the case of a company which is, or has been, a recognised clearing house, maintaining the continuity of F6... clearing services F7and

F8(d)

in the case of a company which is, or has been, a recognised CSD, maintaining the continuity of the services referred to in section 285(3D).

(3)

Before giving directions the Bank of England must consult—

(a)

the Treasury, F9and

F10(b)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c)

the FCA.

(4)

Directions are enforceable, on an application by the Bank of England, by an injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.

(5)

A person is not liable for damages in respect of action or inaction in accordance with directions.

(6)

The immunity 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.