Banking Act 2009

5 Code of practice

(1) The Treasury shall issue a code of practice about the use of—

(a) the stabilisation powers,

(b) the bank insolvency procedure, and

(c) the bank administration procedure.

(2) The code may, in particular, provide guidance on—

(a) how the special resolution objectives are to be understood and achieved,

(b) the choice between different options,

(c) the information to be provided in the course of a consultation under this Part,

(d) the giving of advice by one relevant authority to another about whether, when and how the stabilisation powers are to be used,

(e) how to determine whether Condition 2 in section 7 is met,

(f) how to determine whether the test for the use of stabilisation powers in section 8 is satisfied,

(g) sections 63 and 66, and

(h) compensation.

(3) Sections 12 and 13 require the inclusion in the code of certain matters about bridge banks and temporary public ownership.

(4) The relevant authorities shall have regard to the code.

(5) For the purpose of this section the relevant authorities are—

(a) the Treasury,

(b) the FSA, and

(c) the Bank of England.