223Termination of right to issueU.K.
(1)The Treasury may determine—
(a)that an authorised bank has failed to comply with banknote regulations or banknote rules, and
(b)that, having regard to the nature of the failure, the authorised bank should no longer be permitted to issue banknotes in reliance on section 213.
(2)Before making a determination the Treasury must consult the Bank of England.
(3)On making a determination the Treasury shall notify the authorised bank.
(4)Upon receipt of the notice the authorised bank loses the right to rely on section 213.
(5)If an authorised bank ceases to have permission under [F1Part 4A] of the Financial Services and Markets Act 2000 (regulated activities) to carry on the regulated activity of accepting deposits, it loses the right to rely on section 213 above.
(6)The reference in subsection (5) to [F2Part 4A] of the Financial Services and Markets Act 2000 includes a reference to any provision of the law of another country which the Treasury identify, in banknote regulations, as serving a similar purpose.
(7)Transitional provision of banknote regulations (included in reliance on section 259(1)(c)) may include provision for a case where a bank loses the right to rely on section 213; in particular, the regulations may allow the bank to rely on the section for a specified transitional period or in respect of a specified class of transitional case.
Textual Amendments
F1Words in s. 223(5) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 54 (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F2Words in s. 223(6) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 54 (with Sch. 20); S.I. 2013/423, art. 3, Sch.
Commencement Information
I1S. 223 in force at 12.11.2009 for specified purposes and 23.11.2009 in so far as not already in force by S.I. 2009/3000, arts. 2, 3