Banking Act 2009

170 Contingency funding

(1) After section 214 of the Financial Services and Markets Act 2000 (compensation scheme: general) insert—

“214A Contingency funding

(1) The Treasury may make regulations (“contingency fund regulations”) permitting the scheme manager to impose levies under section 213 for the purpose of maintaining contingency funds from which possible expenses may be paid.

(2) Contingency fund regulations may make provision about the establishment and management of contingency funds; in particular, the regulations may make provision about—

(a) the number and size of funds;

(b) the circumstances and timing of their establishment;

(c) the classes of person from whom contributions to the funds may be levied;

(d) the amount and timing of payments into and out of funds (which may include provision for different levies for different classes of person);

(e) refunds;

(f) the ways in which funds' contents may be invested (including (i) the extent of reliance on section 223A, and (ii) the application of investment income);

(g) the purposes for which funds may be applied, but only so as to determine whether a fund is to be used (i) for the payment of compensation, (ii) for the purposes of co-operating with a bank liquidator in accordance with section 99 of the Banking Act 2009, or (iii) for contributions under section 214B;

(h) procedures to be followed in connection with funds, including the keeping of records and the provision of information.

(3) The compensation scheme may include provision about contingency funds provided that it is not inconsistent with contingency fund regulations.”

(2) At the end of section 213(7) (compensation scheme: further provision) add “(except where limitations are expressly stated)”.

(3) In section 218 (compensation scheme: annual report)—

(a) in subsection (1) after “to the Authority” insert “and the Treasury”, and

(b) at the end of subsection (2)(b) add “or in contingency fund regulations.”