PART 4MISCELLANEOUS

Modification of the F1regulators’ rule making powers9.

F2(1)

Section 137A(1) of FSMA (the FCA’s general rules) has effect as if at the end there were inserted “or for the purposes of, to facilitate or in consequence of the Dunfermline Building Society Property Transfer Instrument 2009”.

(1A)

Section 137G(1) of FSMA (the PRA’s general rules) has effect as if at the end there were inserted “or for the purposes of, to facilitate or in consequence of the Dunfermline Building Society Property Transfer Instrument 2009”.

(2)

F3Section 138A(1) of FSMA (modification or waiver of rules) is modified so it applies in relation to a relevant person—

(a)

in the absence of an application by the relevant person, and

(b)

without any requirement for consent by the relevant person.

(3)

F4Section 138A(4) of FSMA is to have effect such that it does not prevent the F5FCA or the PRA from modifying or waiving rules in relation to a relevant person under F6section 138A where the following condition is satisfied.

(4)

The condition is that F7that regulator is satisfied that the modification or waiver is necessary for the purposes of, to facilitate or in consequence of the Property Transfer Instrument.

(5)

In this article, relevant persons are Dunfermline Building Society and the Dunfermline Bridge Bank.

Modification to the F8regulators’ duties to consult on rule changes10.

(1)

F9Subsections (1) and (2) of section 138L of FSMA (consultation) has effect as if modified by adding at the end—

“or if it is making rules for the purposes of, to facilitate or in consequence of the Dunfermline Building Society Property Transfer Instrument 2009.”

(2)

F10Section 139A of FSMA (power of the FCA to give guidance) has effect as if modified by adding after subsection (3)—

“(3A)

F11Section 138L(1) applies to proposed guidance with the modification made by article 10(1) of the Amendments to Law (Resolution of Dunfermline Building Society) Order 2009.”

Liabilities to Treasury: treatment in insolvency proceedings11.

(1)

This article makes provision in relation to the treatment in insolvency proceedings of the first and second liabilities assumed by Dunfermline by virtue of paragraph 11 of the Property Transfer Instrument.

(2)

In insolvency proceedings—

(a)

the first liability ranks pari passu with the claims of unsecured and unsubordinated creditors of Dunfermline;

(b)

the second liability ranks pari passu with the claims that shareholding members of Dunfermline would have had in respect of the value of their shares but for their transfer.

(3)

The reference in paragraph (2)(b) to shareholding members does not include the holders of deferred shares within the meaning of section 119(1) of the Building Societies Act.

(4)

In this article—

(a)

the reference to insolvency proceedings is a reference to—

(i)

liquidation;

(ii)

administration;

(iii)

building society special administration (within the meaning of Part 3 of the Banking Act 2009 as applied by section 90C of the Building Societies Act);

(b)

“shareholding member” and the reference to the value of shares are to be construed in accordance with section 119 of the Building Societies Act.