F1SCHEDULE 3AApplication and modification of the Banking Act 2009
Insolvency regulations
1
Section 93(4) of the Banking Act 2009 (interpretation: other expressions) applies as if—
a
the reference to a bank were to an authorised payment institution or small payment institution;
b
the reference to an agreement in paragraph (a) were to a contract for payment services; and
c
in the closing words, from “for the purposes” to “the bank” were omitted.
2
Section 233 of the Banking Act 2009 (insolvency regulations) applies as if—
a
references to investment bank insolvency regulations were to payment institution insolvency regulations;
b
references to investment banks were to authorised payment institutions and small payment institutions;
c
references to client assets were to relevant funds;
d
in subsection (3)(c), the reference to clients were to payment service users; and
e
in subsection (4)—
i
references to assets included references to money; and
ii
in paragraph (b), for “those which an institution undertook to hold for clients” there were substituted “relevant funds”.
3
Section 234 of the Banking Act 2009 (regulations: details) applies as if—
a
references to investment bank insolvency regulations were to payment institution insolvency regulations;
b
references to an investment bank were to an authorised payment institution or a small payment institution;
c
in subsection (2)(a), the reference to a trustee of client assets were to a trustee in respect of relevant funds;
d
in subsection (6)—
i
references to assets included references to money;
ii
for paragraphs (a) and (b) there were substituted—
a
establishing a mechanism for determining which assets are held in the asset pool;
b
establishing a mechanism for determining that assets are to be, or not to be, treated as part of the asset pool;
ba
establishing a mechanism for determining whether the asset pool is sufficient to satisfy all the claims of the payment service users in question;
bb
for steps to be taken by the administrator, if it is determined that the asset pool is not sufficient to satisfy all the claims of the payment service users in question;
bc
about the constitution of the asset pool;
iii
in paragraphs (c) and (f), the references to client assets were to the asset pool; and
iv
in paragraph (e), “financial” were omitted; and
e
in subsection (7)(a), the reference to client assets were to relevant funds.
4
Section 235 of the Banking Act 2009 (regulations: procedure) applies as if—
a
references to investment bank insolvency regulations were to payment institution insolvency regulations; and
b
subsections (4), (5) and (6) were omitted.
5
Section 236 of the Banking Act 2009 (review) applies as if the reference to investment bank insolvency regulations were to payment institution insolvency regulations.
6
For the purposes of the modifications in this Schedule—
“relevant funds” has the meaning given to it in regulation 23(1) of these Regulations, and
“asset pool” has the meaning given to it in regulation 23(18) of these Regulations.
Sch. 3A inserted (8.12.2020) by The Payment Services and Electronic Money (Amendment) Regulations 2020 (S.I. 2020/1275), regs. 1(2), 7