C3C4C5C6 Part XV The Financial Services Compensation Scheme
Pt. 15 modified (29.9.2008 at 8.00 a.m.) by The Bradford & Bingley plc Transfer of Securities and Property etc. Order 2008 (S.I. 2008/2546), art. 29 (with art. 30(6))
Pt. 15 modified (7.10.2008 at 9.30 a.m.) by The Heritable Bank plc Transfer of Certain Rights and Liabilities Order 2008 (S.I. 2008/2644), art. 14 (with art. 15(8)
Pt. 15 modified (8.10.2008 at 12.15 p.m.) by The Kaupthing Singer & Friedlander Limited Transfer of Certain Rights and Liabilities Order 2008 (S.I. 2008/2674), art. 15 (with art. 16(8))
Provisions of the scheme
C1C2214BF2F1Contribution to costs of special resolution regime
1
This section applies if—
a
a stabilisation power under Part 1 of the Banking Act 2009 has been exercised in respect of a bank, building society F3, credit union or investment firm within the meaning of that Part (“the institution”); and
b
the Treasury think that the institution was or was likely to have been, or but for the exercise of the power would have become, unable to satisfy claims against it.
2
The Treasury may require the scheme manager to make payments (to the Treasury or any other person) in respect of expenses of a prescribed description incurred (by the Treasury or that person) in connection with the exercise of the power.
3
Subsection (2) is subject to section 214C (limit on amount of special resolution regime payments).
4
In subsection (2) “expenses” includes interest at a specified rate on the difference, at any time, between—
a
the total amount of expenses (including interest) incurred at or before that time; and
b
the total amount recovered, or received from the scheme manager, in respect of the institution, at or before that time, by—
i
the Treasury; and
ii
any other person who has incurred expenses in connection with the exercise of the power that are of a description prescribed under subsection (2).
5
Any payment made by the scheme manager under subsection (2) is to be treated for the purposes of this Part as an expense under the compensation scheme.
6
In this section and section 214C “specified rate” means a rate specified by the Treasury.
7
Different rates may be specified under different provisions or for different periods.
8
A rate may be specified by reference to a rate set (from time to time) by any person.
Pt. XV (ss. 212-224) excluded (27.4.2002) by The Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544), art. 9J (as inserted by The Financial Services and Markets Act 2000 (Regulated Activities) (Amendment) Order 2002 (S.I. 2002/682), arts. 1(2), 4)
Pt. XV (ss. 212-224) modified (2.7.2002) by The Financial Services and Markets Act 2000 (Consequential Amendments and Transitional Provisions) (Credit Unions) Order 2002 (S.I. 2002/1501), art. 5