Banking Act 2009

57 Valuation principles U.K.

(1) A compensation scheme order may specify principles (“valuation principles”) to be applied in determining the amount of compensation.

(2) Valuation principles may, in particular, require an independent valuer—

(a) to apply, or not to apply, specified methods of valuation;

(b) to assess values or average values at specified dates or over specified periods;

(c) to take specified matters into account in a specified manner;

(d) not to take specified matters into account.

(3) In determining an amount of compensation (whether or not in accordance with valuation principles) an independent valuer must disregard actual or potential financial assistance provided by the Bank of England or the Treasury (disregarding ordinary market assistance offered by the Bank on its usual terms).

(4) Valuation principles may require or permit an independent valuer to make assumptions; such as, for example, that the bank—

(a) has had a permission under [F1 Part 4A] of the Financial Services and Markets Act 2000 (regulated activities) varied or cancelled,

(b) is unable to continue as a going concern,

(c) is in administration, or

(d) is being wound up.

(5) There is nothing to prevent the application of the valuation principles in an order from resulting in no compensation being payable to a transferor.

Textual Amendments

F1 Words in s. 57(4)(a) substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 26 (with Sch. 20); S.I. 2013/423, art. 3, Sch.

Commencement Information

I1 S. 57 in force at 17.2.2009 for specified purposes by S.I. 2009/296, arts. 2, 3, Sch. para. 1

I2 S. 57 in force at 21.2.2009 in so far as not already in force by S.I. 2009/296, arts. 2, 3, Sch. para. 1