Explanatory Note
(This note is not part of the Order)
This Order is made under the Banking (Special Provisions) Act 2008 (c.2) (“the 2008 Act”) and provides for certain rights and liabilities to be transferred to ING. The transferred rights and liabilities are those, relating to certain accounts, which were transferred to Deposits Management (Holding) by virtue of the Heritable Bank plc Transfer of Certain Rights and Liabilities Order 2008 (S.I 2008/2644) (“the first Order”).
Article 3 gives effect to the transfer and makes provision in relation to rights and obligations in relation to depositors and in relation to interest on deposits transferred.
Articles 4 and 5 make provision to ensure the effectiveness of the transfer and article 6 ensures that third-party rights do not become exercisable by virtue of the transfer.
Article 7 provides for references in documents relating to Heritable Bank Plc to be treated as references relating to ING.
Article 9 makes provision for payment by Deposits Management (Heritable) of the aggregate amount of the liabilities transferred to ING, less a stipulated amount.
Article 10 makes amendments to the first Order in relation to the Financial Services Compensation Scheme.
Article 15 applies Part 4 of the first Order (except article 22), which relates to where Heritable Bank Plc is placed in administration, as if references to Deposits Management (Heritable) were references to ING.
Article 16 provides for an agreement made between the Treasury and ING relating to transitional services to bind Deposits Management (Heritable).
Articles 18 and 19 modify the Financial Services Authority’s rule-making power and its duty to consult on rule changes.
Article 20 makes provision that the transfer of data under the Order is not to be taken as a breach of any restriction on disclosure.
An Impact Assessment of the effect of this instrument on the costs to business has been prepared. It may be obtained from the Financial Stability Team, HM Treasury, 1 Horse Guards Road, London SW1A 2HQ. It is also available on HM Treasury’s website (www.hm-treasury.gov.uk). Copies of the document have been placed in the libraries of both Houses of Parliament.