The Banking Act 2009 (Restriction of Partial Property Transfers) (Recognised Central Counterparties) Order 2014

PART 1 U.K. General

Citation, commencement and interpretation U.K.

1.—(1) This Order may be cited as the Banking Act 2009 (Restriction of Partial Property Transfers) (Recognised Central Counterparties) Order 2014.

(2) This Order comes into force on 1st August 2014.

(3) In this Order—

“the Act” means the Banking Act 2009;

“the Bank” means the Bank of England;

“continuity powers” means the powers conferred by section 64(2) of the Act (including that subsection as applied by section 65(2) of the Act);

“market contracts” has the meaning given by section 155(1)(d) of the Companies Act 1989 M1 ;

“title transfer financial collateral arrangement” has the meaning given by regulation 3 of the Financial Collateral Arrangements (No. 2) Regulations 2003 M2 .

(4) Expressions used in this Order and in the Insolvency Act 1986 M3 have the same meaning as in that Act.

(5) References in this Order to netting arrangements include—

(a) arrangements which provide for netting (within the meaning given by regulation 2 of the Financial Markets and Insolvency (Settlement Finality) Regulations 1999 M4 ; and

(b) arrangements which include a close-out netting provision (within the meaning given by regulation 3 of the Financial Collateral Arrangements (No. 2) Regulations 2003).

(6) In this Order, all references to a provision in Part 1 of the Act are references to that provision as applied to recognised central counterparties by section 89B of the Act.

Marginal Citations

M1 1989 c.40; section 155(1) was substituted by S.I. 2013/504.

M2 S.I. 2003/3226.

M3 1986 c.45.

M4 S.I. 1999/2979.

Application of this Order U.K.

2.—(1) Articles 3 to 12 of this Order apply in the following cases.

(2) Case 1 is where a partial property transfer has been made by the Bank in accordance with section 11(2) or 12(2) of the Act.

(3) Case 2 is where—

(a) the Bank has made a property transfer instrument in accordance with section 11(2) or 12(2) of the Act (whether or not that instrument is a partial property transfer); and

(b) a property transfer instrument under section 42, 42A M5 , 43 or 44 of the Act has been made by the Bank which is a partial property transfer.

(4) Case 3 is where—

(a) the Bank has made a share transfer instrument in accordance with section 13(2) of the Act, and

(b) a property transfer instrument has been made by the Bank under section 45 M6 or 46 M7 of the Act which is a partial property transfer.

(5) For the purposes of this Order, a property transfer instrument which purports to transfer all of the property, rights or liabilities of a recognised central counterparty shall be treated as having done so effectively (and so shall not be treated as a partial property transfer), notwithstanding the possibility that any of the property, rights or liabilities are foreign and may not have been effectively transferred by the property transfer instrument by virtue of steps taken under section 39 of the Act.

Marginal Citations

M5 Section 42A was inserted by the Financial Services Act 2012, section 97(1) and (5).

M6 Subsection (8) was amended by the Financial Services Act 2012, Schedule 17, paragraphs 1 and 24. Subsection (5A) will be inserted when the Financial Services Act 2012, section 98(1),(4) is commenced.

M7 Subsection (1) was amended by the Financial Services Act 2012, section 97(1) and (7)(a). Subsection (3A) was inserted by the Financial Services Act 2012, section 97(1) and (7)(b). Subsection (7) was amended by the Financial Services Act 2012, Schedule 17, paragraphs 1 and 25. Subsection (5A) will be inserted when the Financial Services Act 2012, section 98(1) and (5) is commenced.