Part 1Special Resolution Regime
Incidental functions
66General continuity obligation: share transfers
1
In this section and section 67—
a
“transferred bank” means a bank all or part of the ownership of which has been transferred in accordance with section 11(2)(a) or 13(2),
b
“former group company” means anything which was a group undertaking in relation to the transferred bank immediately before the transfer (whether or not it is also a group undertaking in relation to the transferred bank immediately after the transfer),
c
“group undertaking” has the meaning given by section 1161(5) of the Companies Act 2006 (interpretation), and
d
“the continuity authority” means—
i
the Bank of England, where ownership was transferred in accordance with section 11(2)(a), and
ii
the Treasury, where ownership was transferred in accordance with section 13(2).
2
Each former group company must provide such services and facilities as are required to enable the transferred bank to operate effectively.
3
The duty under subsection (2) (the “continuity obligation”) may be enforced as if created by contract between the transferred bank and the former group company.
4
The duty to provide services and facilities in pursuance of the continuity obligation is subject to a right to receive reasonable consideration.
5
The continuity obligation is not limited to the provision of services or facilities directly to the transferred bank.
6
The continuity authority may by notice to a former group company state that in the authority’s opinion—
a
specified activities are required to be undertaken in accordance with the continuity obligation;
b
activities are required be undertaken in accordance with the continuity obligation on specified terms.
7
A notice under subsection (6) shall be determinative of the nature and extent of the continuity obligation as from the time when the notice is given.
8
The Bank of England may act under or by virtue of subsection (6) only with the consent of the Treasury.