(1) The Authority may by notice in writing require any overseas institution which has established a representative office in the United Kingdom or has given notice to the Authority under section 75(1) above of its intention to establish such an office to provide the Authority with such information or documents as the Authority may reasonably require.
(2) Without prejudice to the generality of subsection (1) above, the Authority may by notice in writing require such an overseas institution to deliver to the Authority—
(a) in the case of an overseas institution which is a company incorporated in the United Kingdom, copies of the documents which the company is required to send to the registrar of companies under section 10 of the Companies Act 1985 or Article 21 of the Companies (Northern Ireland) Order 1986;
(aa) in the case of an overseas institution to which section 690A of that Act applies, copies of the documents which it is required to deliver for registration in accordance with paragraph 1(1) or (2) of Schedule 21A of that Act;
(b) in the case of an overseas institution to which section 691(1) of that Act or Article 641(1) of that Order applies, copies of the document which it is required to deliver for registration in accordance with that section or Article;
(c) in the case of any other overseas institution (other than an individual), information corresponding to that which would be contained in the documents which it would be required to deliver as mentioned in paragraph (b) above if it were a company to which section 691(1) applied;
(d) in the case of an overseas institution which is authorised to take deposits or conduct banking business in a country or territory outside the United Kingdom by the relevant supervisory authority in that country or territory, a certified copy of any certificate from that authority conferring such authorisationon it.
(3) An overseas institution to which a notice is given under subsection (1) or (2) above shall comply with the notice—
(a) in the case of an institution which has established a representative office in the United Kingdom, before the end of such period as is specified in the notice; and
(b) in the case of an institution which has given notice under section 75(1) above of its intention to establish such an office, before it establishes the office.
(4) If at any time an overseas institution which has been required to deliver information or documents to the Authority under subsection (2) above is required to deliver any document or give notice to the registrar of companies under section 18 or 288(2) of the said Act of 1985 or Article 29 or 296(2) of the said Order of 1986, it shall no later than the time by which it must have complied with that requirement deliver a copy of that document or give notice to the Authority.
(5) If at any time an overseas institution is required to furnish any document or give notice to the registrar of companies under section 692, 695A(3) or 696 of, or paragraph 7 or 8 of Schedule 21A to, the said Act of 1985 or Article 642 or 646 of the said Order of 1986 (or would be so required if it were a company to which that section, paragraph or Article applied), it shall no later than the time by which it must have complied with that requirement deliver a copy of that document to the Authority.
(6) If at any time a certificate of authorisation of which a copy was required to be delivered to the Authority under subsection (2)(d) above is amended or the authorisation is withdrawn, the overseas institution shall no later than one month after the amendment or withdrawal deliver a copy of the amended certificate or, as the case may be, a notice stating that the authorisation has been withdrawn to the Authority.
(7) The Treasury may after consultation with the Authority by order provide that sections 39 and 40 above shall apply in relation to overseas institutions as they apply in relation to authorised institutions; but no order shall be made under this section unless a draft of it has been laid before and approved by a resolution of each House of Parliament.
80 Regulations imposing requirements on overseas-based banks.
(1) The Treasury may, after consultation with the Authority, by regulations impose on overseas institutions which have established or propose to establish representative offices in the United Kingdom such requirements as the Treasury consider appropriate in connection with those offices and the activities conducted from them.
(2) Regulations under this section may in particular require the establishment or continued existence of a representative office to be authorised by the Authority and such regulations may make provision for—
(a) the granting and revocation of such authorisations;
(b) the imposition of conditions in connection with the grant or retention of such authorisations; and
(c) appeals against the refusal or withdrawal of such authorisations or the imposition of such conditions.
(3) No regulations shall be made under this section unless a draft of the regulations has been laid before and approved by a resolution of each House of Parliament.
A person who contravenes any provision in this Part of this Act or any requirement imposed under it shall be guilty of an offence and liable on summary conviction to imprisonment for a term not exceeding six months or to a fine not exceeding the fifth level on the standard scale or to both and, where the contravention involves a public display or exhibition of any name or description, there shall be a fresh contravention on each day on which the person causes or permits the display or exhibition to continue.
(1) Except as provided by the subsequent provisions of this Part of this Act—
(a) no person who under or for the purposes of this Act receives information relating to the business or other affairs of any person; and
(b) no person who obtains any such information directly or indirectly from a person who has received it as aforesaid,
shall disclose the information without the consent of the person to whom it relates and (if different) the person from whom it was received as aforesaid.
(2) This section does not apply to information which at the time of the disclosure is or has already been made available to the public from other sources or to information in the form of a summary or collection of information so framed as not to enable information relating to any particular person to be ascertained from it.
(3) Any person who discloses information in contravention of this section shall be guilty of an offence and liable—
(a) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both;
(b) on summary conviction, to imprisonment for a term not exceeding three months or to a fine not exceeding the statutory maximum or to both.
83 Disclosure for facilitating discharge of functions by the Bank.
(1) Section 82 above does not preclude the disclosure of information in any case in which disclosure is for the purpose of enabling or assisting the Authority to discharge.
(a) its function as a monetary authority; or
(aa) its functions in its capacity as a designated agency within the meaning of the Financial Services Act 1986; or
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) its functions as a supervisor of money market . . . institutions
. . .
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) Without prejudice to the generality of subsection (1) above, that section does not preclude the disclosure of information by the Authority to the auditor of an authorised institution or former authorised institution if it appears to the Authority that disclosing the information would enable or assist the Authority to discharge the functions mentioned in that subsection or would otherwise be in the interests of depositors.
(3) If, in order to enable or assist the Authority properly to discharge any of its functions under this Act, the Authority considers it necessary to seek advice from any qualified person on any matter of law, accountancy, valuation or other matter requiring the exercise of professional skill, section 82 above does not preclude the disclosure by the Authority to that person of such information as appears to the Authority to be necessary to ensure that he isproperly informed with respect to the matters on which his advice is sought.
(1) Section 82 above does not preclude the disclosure by the Authority of information to any person specified in the first column of the following Table if the Authority considers that the disclosure would enable or assist that person to discharge the functions specified in relation to him in the second column of that Table.
Table
Person | Functions
1.The Secretary of State. | Functions under the Insurance Companies Act 1982, Part XIV of the Companies Act 1985, Part XIII of the Insolvency Act 1986 , the Financial Services Act 1986 or Part II, III or VII of the Companies Act 1989.
2.The Treasury | Functions under the Insurance Companies Act 1982, under the Financial Services Act 1986 or under Part III or Part VII of the Companies Act 1989 .
3.An inspector appointed under Part XIV of the Companies Act 1985 or section 94 or 177 of the Financial Services Act 1986. | Functions under that Part or that section.
4.A person authorised to exercise powers under section 43A or 44 of the Insurance Companies Act 1982, section 447 of the Companies Act 1985, section 106 of the Financial Services Act 1986 or section 84 of the Companies Act 1989. | Functions under that section.
4A The Bank of England. | Functions in its capacity as a monetary authority or supervisor of systems for the transfer of funds between credit institutions and their customers.
5.The Chief Registrar of friendly societies, . . . and the Assistant Registrar of Friendly Societies for Scotland. | Functions under the enactments relating to friendly societies . . ..
5AThe Friendly Societies Commission. | Functions under the enactments relating to friendly societies or under the Financial Services Act 1986.
6.The Industrial Assurance Commissioner and the Industrial Assurance Commissioner for Northern Ireland. | Functions under the enactments relating to industrial assurance.
7.The Building Societies Commission. | Functions under the Building Societies Act 1986 and protecting the interests of the shareholders and depositors of building societies.
8.The Director General of Fair Trading. | Functions under the Consumer Credit Act 1974.
9.A designated agency (within the meaning of the Financial Services Act 1986. | Functions under the Financial Services Act 1986 or Part VII of the Companies Act 1989.
10.A transferee body or the competent authority (within the meaning of the Financial Services Act 1986). | Functions under the Financial Services Act 1986.
11.A recognised self-regulating organisation, recognised professional body, recognised investment exchange, . . . or recognised self-regulating organisation for friendly societies (within the meaning of the Financial Services Act 1986). | Functions in its capacity as an organisation, body, or exchange recognised under the Financial Services Act 1986.
11AA recognised clearing house (within the meaning of the Financial Services Act 1986). | Functions in its capacity as a clearing house under the Financial Services Act 1986 so far as they are exercisable in relation to defaults or potential defaults by market participants.
11BA person approved under the Uncertificated Securities Regulations 2001 as an operator of a relevant system (within the meaning of those Regulations). | Functions as a person so approved so far as they are exercisable in relation to defaults or potential defaults by market participants.
11CA recognised supervisory body (within the meaning of Part II of the Companies Act 1989). | Functions in its capacity as such a body under that Part or functions in relation to disciplinary proceedings against auditors.
. . . | . . .
12.A recognised professional body (within the meaning of section 391 of the Insolvency Act 1986). | Functions in its capacity as such a body under the Insolvency Act 1986 or functions in relation to disciplinary proceedings against insolvency practitioners (within the meaning of that Act).
13.The Department of Economic Development in Northern Ireland. | Functions under Part XV of the Companies (Northern Ireland) Order 1986 or Part XII of the Insolvency (Northern Ireland) Order 1989or Part III of the Companies (Northern Ireland) Order 1990 or Part II or V of the Companies (No. 2) (Northern Ireland) Order 1990.
14.An inspector appointed under Part XV of the Companies (Northern Ireland) Order 1986 . . . | Functions under that Part . . ..
15.A person authorised to exercise powers under Article 440 of the Companies (Northern Ireland) Order 1986 . . .. | Functions under that Article . . ..
16.The Official Receiver or, in Northern Ireland, the Official Receiver for Northern Ireland | Investigating the cause of the failure of an authorised institution or former authorised institution in respect of which a winding-up order, or bankruptcy orderhas been made.
17.Panel on Take-overs and Mergers | All its functions
18.A person included in the list maintained by the Authority for the purposes of section 171 of the Companies Act 1989. | Functions under settlement arrangements to which regulations under that section relate.
19.A recognised professional body (within the meaning of Article 350 of the Insolvency (Northern Ireland) Order 1989). | Functions in its capacity as such a body under the Insolvency (Northern Ireland) Order 1989 or functions in relation to disciplinary proceedings against insolvency practitioners (within the meaning of that Order).
20A recognised supervisory body (within the meaning of Part III of the Companies (Northern Ireland) Order 1990). | Functions in its capacity as such a body under that Part, or functions in relation to disciplinary proceedings against auditors.
20. The Occupational Pensions Regulatory Authority. | Functions under the Pension Schemes Act 1993 or the Pensions Act 1995 or any enactment in force in Northern Ireland corresponding to either of them.
[21. The Operator within the meaning of the Uncertificated Securities Regulations 1992.] | [Functions of the Treasury under Parts IX, X, XII and XIV of the Uncertificated Securities Regulations 1992 which are for the time being delegated to the Operator. ]
(2) The Treasury may after consultation with the Authority by order amend the Table in subsection (1) above by—
(a) adding any person exercising regulatory functions and specifying functions in relation to that person;
(b) moving any person for the time being specified in the Table; or
(c) altering the functions for the time being specified in the Table in relation to any person;
and the Treasury may also after consultation with the Authority by order restrict the circumstances in which, or impose conditions subject to which, disclosure is permitted in the case of any person for the time being specified in the Table.
(3) An order under subsection (2) above shall be subject to annulment in pursuance of a resolution of either House of Parliament.
(4) Section 82 above does not preclude the disclosure by any person specified in the first column of the Table in subsection (1) above of information obtained by him by virtue of that subsection if he makes the disclosure with the consent of the Authority and for the purpose of enabling or assisting him to discharge any functions specified in relation to him in the second column of that Table; and before deciding whether to give its consent to such a disclosure by any person the Authority shall take account of such representations made by him as to the desirability of or the necessity for the disclosure.
(5) Section 82 above does not preclude the disclosure by the Authority of information to the Treasury if disclosure appears to the Authority to be—
(a) desirable or expedient in the interests of depositors; or
(b) in the public interest,
and (in either case) in accordance with article 30(9) of the Banking Consolidation Directive.
(5A) Section 82 above does not preclude the disclosure by the Authority of information to the Secretary of State for purposes other than those specified in relation to him in subsection (1) above if the disclosure is made with the consent of the Treasury and—
(a) the information relates to an authorised institution or former authorised institution and does not enable the financial affairs of any other identifiable person to be ascertained and disclosure appears to the Authority to be necessary in the interests of depositors or in the public interest; or
(b) in any other case, disclosure appears to the Authority to be necessary in the interests of depositors;
and (in either case) disclosure appears to the Authority to be in accordance with article 30(9) of the Banking Consolidation Directive.
(6) Section 82 above does not preclude the disclosure of information for the purpose of enabling or assisting an authority in a country or territory outside the United Kingdom to exercise—
(a) functions corresponding to those of—
(i) the Authority under this Act or the Banking Coordination (Second Council Directive) Regulations 1992;
(ii) the Secretary of State or the Treasuryunder the Insurance Companies Act 1982, Part XIII of the Insolvency Act 1986 or the Financial Services Act 1986; or
(iii) the competent authority under Part IV of the Financial Services Act 1986;
(b) functions in connection with rules of law corresponding to any of the provisions of Part V of the Criminal Justice Act 1993 (insider dealing) or Part VII of the Financial Services Act 1986; . . .
(c) supervisory functions in respect of bodies carrying on business corresponding to that of building societies.
or
in the case of a supervisory authority in another EEA State, its functions as a supervisor of systems for the transfer of funds between credit institutions and their customers.
(7) Subsection (6) above does not apply in relation to disclosures to an authority which is not a supervisory authority in another member State unless the Authority is satisfied that the authority is subject to restrictions on further disclosures at least equivalent to those imposed by this Part of this Act.
(8) Information which is disclosed to a person in pursuance of subsection (1), (4) or (6) above shall not be used otherwise than for the purpose mentioned in that subsection.
(9) Any person who uses information in contravention of subsection (8) above shall be liable on summary conviction to imprisonment for a term not exceeding three months or to a fine not exceeding the fifth level on the standard scale or to both.
(10) Subject to subsection (11) below,Any reference in this section to enabling or assisting any person to discharge or exercise any functions is a reference to enabling or assisting that person to discharge or exercise those functions in relation to—
(a) a financial market; . . .
(b) persons carrying on the business of banking or insurance, Consumer Credit Act businesses or the business of providing other financial services; or
(c) persons involved in the operation of occupational pension schemes (within the meaning of the Pension Schemes Act 1993 or, in Northern Ireland, the Pension Schemes (Northern Ireland) Act 1993)
and in this subsection ’Consumer Credit Act business’ has the same meaning as in the Banking Coordination (Second Council Directive) Regulations 1992.
(11) Subsection (10) above shall not apply in relation to references to enabling or assisting the discharge or exercise of the following functions, namely—
(a) functions of the Secretary of State under Part XIV of the Companies Act 1985, Part XIII of the Insolvency Act 1986 or Part II of the Companies Act 1989 or, so far as relating to the breach of any law relating to companies, under section 83 of the Companies Act 1989;
(b) functions of an inspector under Part XIV of the Companies Act 1985 or, so far as relating to offences involving securities of a company, under section 177 of the Financial Services Act 1986;
(b) functions of a person authorised to exercise powers under section 84 of the Companies Act 1989, so far as relating to the breach of any law relating to companies;
(d) functions of a recognised clearing house (within the meaning of the Financial Services Act 1986);
(e) functions of a person approved under the Uncertificated Securities Regulations 2001 as an operator of a relevant system (within the meaning of those Regulations);
(f) functions of a recognised supervisory body (within the meaning of Part II of the Companies Act 1989);
(g) functions of a recognised professional body (within the meaning of section 391 of the Insolvency Act 1986);
(h) functions of the Department of Economic Development in Northern Ireland under Part XV of the Companies (Northern Ireland) Order 1986, Part XII of the Insolvency (Northern Ireland) Order 1989 or Part III of the Companies (Northern Ireland) Order 1990;
(i) functions of an inspector under Part XV of the Companies (Northern Ireland) Order 1986;
(j) functions of a recognised professional body (within the meaning of Article 350 of the Insolvency (Northern Ireland) Order 1989);
(k) functions of a recognised supervisory body (within the meaning of Part III of the Companies (Northern Ireland) Order 1990);
(l) functions of a supervisory authority in another EEA State in its capacity as a supervisor of systems for the transfer of funds between credit institutions and their customers.
(12) In this section ’another EEA State’ means a State other than the United Kingdom which is a contracting party to the agreement on the European Economic Area signed at Oporto on 2nd May 1992 as adjusted by the Protocol signed at Brussels on 17th March 1993.
(1) Section 82 above does not preclude the disclosure of information—
(a) for the purpose of enabling or assisting the Board of Banking Supervision or the Deposit Protection Board or any other person to discharge its or his functions under this Act;
(b) for the purpose of enabling or assisting a person to do anything which he is required to do in pursuance of a requirement imposed under section 39(1)(b) above;
(c) with a view to the institution of, or otherwise for the purposes of, any criminal proceedings, whether under this Act or otherwise;
(d) in connection with any other proceedings arising out of this Act;
(e) with a view to the institution of, or otherwise for the purposes of, proceedings under section 7 or 8 of the Company Directors Disqualification Act 1986 or Article 10 or 11 of the Companies (Northern Ireland) Order 1989 in respect of a director or former director of an authorised institution or former authorised institution;
(f) in connection with any proceedings in respect of an authorised institution or former authorised institution under the Bankruptcy (Scotland) Act 1985 or Parts I to VII or IX to XI of the Insolvency Act 1986 or Parts II to VII or IX and X of the Insolvency (Northern Ireland) Order 1989 which the Authority has instituted or in which it has a right to be heard;
(g) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(h) in pursuance of a Community obligation.
(1A) The disclosures permitted by subsection (1)(f) above do not include the disclosure of information relating to a person who (not being a director, controller or manager of the institution) is or has been, to the knowledge of the person making the disclosure, involved in an attempt to secure the survival of the institution as a going concern.
(2) Section 82 above does not preclude the disclosure by the Authority to the Director of Public Prosecutions, the Director of Public Prosecutions for Northern Ireland, the Lord Advocate, a procurator fiscal or a constable of information obtained by virtue of section 41, 42 or 43 above or of information in the possession of the Authority as to any suspected contravention in relation to which the powers conferred by those sections are exercisable.
(3) Section 82 above does not preclude the disclosure of information by the Deposit Protection Board to any person or body responsible for a scheme for protecting depositors or investors (whether in the United Kingdom or elsewhere) similar to that for which provision is made by Part II of this Act if it appears to the Board that disclosing the information would enable or assist the recipient of the information or the Board to discharge his or its functions.
86 Information supplied to Bank by relevant overseas authority etc.
(1) Section 82 above applies also to information which—
(a) has been supplied to the Authority for the purposes of any relevant functions by the relevant supervisory authority in a country or territory outside the United Kingdom; or
(b) has been obtained for those purposes by the Authority, or by a person acting on its behalf, in another member State.
(2) Subject to subsections (3) and (4) below, information supplied or obtained as mentioned in subsection (1)(a) or (b) above shall not be disclosed except as provided by section 82 above or—
(a) for the purpose of enabling or assisting the Authority to discharge any relevant functions or any functions in its capacity as a designated agency within the meaning of the Financial Services Act 1986; or
(b) with a view to the institution of, or otherwise for the purposes of, criminal proceedings, whether under this Act or otherwise.
(3) Information supplied to the Authority for the purposes of any relevant functions by the relevant supervisory authority in another member State may be disclosed—
(a) to a relevant recipient, if the authority consents to its disclosure and the case is one in which information to which section 82 above applies could be so disclosed by virtue of section 84(1) or (2) above; or
(b) to the Treasury or the Secretary of State, if the authority consents to its disclosure and the case is one in which information to which section 82 above applies could be so disclosed by virtue of section 84(5) or (5A) above.
(4) Information obtained as mentioned in subsection (1)(b) above may be disclosed—
(a) to a relevant recipient, if the relevant supervisory authority in the member State concerned consents to its disclosure and the case is one in which information to which section 82 above applies could be so disclosed by virtue of section 84(1) or (2) above; or
(b) to the Treasury or the Secretary of State, if that authority consents to its disclosure and the case is one in which information to which section 82 above applies could be so disclosed by virtue of section 84(5) or (5A) above.
(4A) Before the Authority discloses information to any person under subsection (3) above, it shall notify the relevant supervisory authority which supplied the information of the name and responsibilities of that person.
(5) In this section— “relevant functions”, in relation to the Authority, means its functions under this Act and its functions as a supervisor of money market institutions;
’relevant recipient’ means a person specified in any of entries 1 to 8, 13 to 15 and 17 in the Table in section 84(1) above.
87 Notification of acquisition of significant shareholding.
(1) After section 174(3) of the Consumer Credit Act 1974 there shall be inserted—
(3A) Subsections (1) and (2) do not apply to any disclosure of information by the Director to the Bank of England for the purpose of enabling or assisting the Bank to discharge its functions under the Banking Act 1987 or the Director to discharge his functions under this Act.
(2) Information disclosed to the Authority under subsection (1) of section 449 of the Companies Act 1985 for the purpose of enabling or assisting it to discharge its functions under this Act or in its capacity as a competent authority under subsection (3)(ha) of that section may be disclosed—
(a) with the consent of the Secretary of State, in any case in which information to which section 82 applies could be disclosed by virtue of section 84(1) or (2) above; and
(b) in any case in which information to which section 82 above applies could be disclosed by virtue of any of the other provisions of this Part of this Act.
(3) Information disclosed to the Authority under paragraph (1) of Article 442 of the Companies (Northern Ireland) Order 1986 for the purpose of enabling or assisting it to discharge its functions under this Act or in its capacity as a competent authority under paragraph (3)(ha) of that Article may be disclosed—
(a) with the consent of the Department of Economic Development in Northern Ireland, in any case in which information to which section 82 above applies could be disclosed by virtue of section 84(1) or (2) above; and
(b) in any case in which information to which section 82 above applies could be disclosed by virtue of any of the other provisions of this Part of this Act.
(3A) Information disclosed by the Building Societies Commission to the Authority for the purpose of enabling or assisting it to discharge any relevant functions may be disclosed—
(a) to a relevant recipient, if the Commission consents to its disclosure and the case is one in which information to which section 82 above applies could be so disclosed by virtue of section 84(1) or (2) above; or
(b) to the Treasury or the Secretary of State, if the Commission consents to its disclosure and the case is one in which information to which section 82 above applies could be so disclosed by virtue of section 84(5)(a) or (5A) above;
and in this subsection “relevant functions” has the same meaning as in section 86 above and “relevant recipient” means a person specified in any of entries 1 to 8, 13 to 15 and 17 in the Table in section 84(1) above.
(4) Any information which has been lawfully disclosed to the Authority may be disclosed by it to the Board of Banking Supervision so far as necessary for enabling or assisting the Board to discharge its functions under this Act.
88 Exclusion of authorised institution’s agreements from Consumer Credit Act 1974.
(1) The Consumer Credit Act 1974 shall be amended as follows.
(2) In section 16(1) (consumer credit agreements with certain bodies exempt from regulation) after paragraph (g) there shall be inserted
, or
(h) an authorised institution or wholly-owned subsidiary (within the meaning of the Companies Act 1985) of such an institution.
.
(3) In section 16(3) (Secretary of State’s duty to consult before making orders) after paragraph (e) there shall be inserted
or
(f) under subsection (1)(h) without consulting the Treasury and the Bank of England.
.
(4) In section 189(1) (definitions) after the definition of “association” there shall be inserted—
“authorised institution” means an institution authorised under the Banking Act 1987;
.
After section 187(3) of the Consumer Credit Act 1974 (arrangements to be disregarded in determining whether a consumer credit agreement is to be treated as entered into in accordance with prior or in contemplation of future arrangements between creditor and supplier) there shall be inserted—
(3A) Arrangements shall also be disregarded for the purposes of subsections (1) and (2) if they are arrangements for the electronic transfer of funds from a current account at a bank within the meaning of the Bankers’ Books Evidence Act 1879.
90 Disclosure of transactions by authorised institutions with chief executives and managers.
(1) For section 233(3) of the Companies Act 1985 there shall be substituted—
(3) Subsections (1) and (2) do not apply in relation to any transaction, arrangement or agreement made by an authorised institution for any officer of the institution or for any officer of its holding company unless the officer is a chief executive or manager within the meaning of the Banking Act 1987; and references to officers in Part II of Schedule 6 shall be construed accordingly.
(2) For Article 241(3) of the Companies (Northern Ireland) Order 1986 there shall be substituted—
(3) Paragraphs (1) and (2) do not apply in relation to any transaction, arrangement or agreement made by an authorised institution for any officer of the institution or for any officer of its holding company unless that officer is a chief executive or manager within the meaning of the Banking Act 1987; and references to officers in Part II of Schedule 6 shall be construed accordingly.
91 Powers for securing reciprocal facilities for banking and other financial business.1986 c. 60.
For the avoidance of doubt it is hereby declared that a notice under section 183 of the Financial Services Act 1986 (disqualification or restriction of persons connected with overseas countries which do not afford reciprocal facilities for financial business) may be served on any person connected with the country in question who is carrying on or appears to the Secretary of State or the Treasury to intend to carry on in, or in relation to, the United Kingdom business of any of the descriptions specified in subsection (1) of that section whether or not it is of the same description as that affected by the less favourable terms which are the occasion for the service of the notice.
(1) On a petition presented by the Authority by virtue of this section the court having jurisdiction under the Insolvency Act 1986 may wind up an authorised institution or former authorised institution if—
(a) the institution is unable to pay its debts within the meaning of section 123 or, as the case may be, section 221 of that Act; or
(b) the court is of the opinion that it is just and equitable that the institution should be wound up;
and for the purposes of such a petition an institution which defaults in an obligation to pay any sum due and payable in respect of a deposit shall be deemed to be unable to pay its debts as mentioned in paragraph (a) above.
(2) Where a petition is presented under subsection (1) above for the winding up of a partnership on the ground mentioned in paragraph (b) of that subsection or, in Scotland, on the ground mentioned in paragraph (a) or (b) of that subsection, the court shall have jurisdiction and the Insolvency Act 1986 shall have effect as if the partnership were an unregistered company within the meaning of section 220 of that Act.
(3) On a petition presented by the Authority by virtue of this section the High Court in Northern Ireland may wind up an authorised institution if—
(a) the institution is unable to pay its debts within the meaning of Article 103 or, as the case may be, Article 185 of the Insolvency (Northern Ireland) Order 1989; or
(b) the court is of the opinion that it is just and equitable that the institution should be wound up;
and for the purposes of such a petition an institution which defaults in an obligation to pay any sum due and payable in respect of a deposit shall be deemed to be unable to pay its debts as mentioned in paragraph (a) above.
(4) Where a petition is presented under subsection (3) above for the winding up of a partnership on the ground mentioned in paragraph (b) of that subsection, the court shall have jurisdiction and the said Order of 1989 shall have effect as if the partnership were an unregistered company within the meaning of Article184 of that Order.
(5) For the purposes of this section the definition of deposit in section 5 above shall be treated as including any sum that would otherwise be excluded by subsection (3)(a), (b) or (c) of that section.
(6) This section applies to a company or partnership which has contravened section 3 above as it applies to an authorised institution.
(1) If on the application of the Authority, the Director of Public Prosecutions, the Lord Advocate or the Director of Public Prosecutions for Northern Ireland the court is satisfied—
(a) that there is a reasonable likelihood that a person will contravene section 3, 18, 35, 67, 69, 71, or 77 above, a direction under section 19 above or regulations under section 32, 34, or 80 above; or
(b) that any person has been guilty of any such contravention and that there is a reasonable likelihood that the contravention will continue or be repeated,
the court may grant an injunction restraining, or in Scotland an interdict prohibiting, the contravention.
(2) If on the application of the Authority, the Director of Public Prosecutions, the Lord Advocate or the Director of Public Prosecutions for Northern Ireland it appears to the court that a person may have been guilty of such a contravention as is mentioned in subsection (1) above the court may grant an injunction restraining, or in Scotland an interdict prohibiting, him from disposing of or otherwise dealing with any of his assets while the suspected contravention is investigated.
(3) The jurisdiction conferred by this section shall be exercisable by the High Court and the Court of Session.
(1) Any person who knowingly or recklessly provides the Authority or any other person with information which is false or misleading in a material particular shall be guilty of an offence if the information is provided—
(a) in purported compliance with a requirement imposed by or under this Act; or
(b) otherwise than as mentioned in paragraph (a) above but in circumstances in which the person providing the information intends, or could reasonably be expected to know, that the information would be used by the Authority for the purpose of exercising its functions under this Act.
(2) Any person who knowingly or recklessly provides the Authority or any other person with information which is false or misleading in a material particular shall be guilty of an offence if the information is provided in connection with an application for authorisation under this Act.
(3) An authorised institution or former authorised institution shall be guilty of an offence if it fails to provide the Authority with any information in its possession knowing or having reasonable cause to believe—
(a) that the information is relevant to the exercise by the Authority of its functions under this Act in relation to the institution; and
(b) that the withholding of the information is likely to result in the Authority being misled as to any matter which is relevant to and of material significance for the exercise of those functions in relation to the institution.
(4) Any person who knowingly or recklessly provides any person appointed under section 41 above with information which is false or misleading in a material particular shall be guilty of an offence.
(5) Any person guilty of an offence under this section shall be liable—
(a) on conviction on indictment, to imprisonment for a term not exceeding two years or to a fine or to both;
(b) on summary conviction, to imprisonment for a term not exceeding six months or to a fine not exceeding the statutory maximum or to both.
95 Restriction of Rehabilitation of Offenders Act 1974.
(1) The Rehabilitation of Offenders Act 1974 shall have effect subject to the provisions of this section in cases where the spent conviction is for—
(a) an offence involving fraud or other dishonesty; or
(b) an offence under legislation (whether or not of the United Kingdom) relating to companies (including insider dealing), building societies, industrial and provident societies, credit unions, friendly societies, insurance, banking or other financial services, insolvency, consumer credit or consumer protection.
(2) Nothing in section 4(1) (restriction on evidence as to spent convictions in proceedings) shall prevent the determination in any proceeding arising out of any such decision of the Authority as is mentioned in section 27(1) or (3) above (including proceedings on appeal to any court) of any issue, or prevent the admission or requirement in any such proceedings of any evidence, relating to a person’s previous convictions for any such offence as is mentioned in subsection (1) above or the circumstances ancillary thereto.
(3) A conviction for such an offence as is mentioned in subsection (1) above shall not be regarded as spent for the purposes of section 4(2) (questions relating to an individual’s previous convictions) if—
(a) the question is put by or on behalf of the Authority and the individual is a person who is or is seeking to become a director, controller or manager of an authorised institution, a former authorised institution or an institution which has made an application for authorisation which has not been disposed of; or
(b) the question is put by or on behalf of any such institution and the individual is or is seeking to become a director, controller or manager of that institution,
and the person questioned is informed that by virtue of this section convictions for any such offence are to be disclosed.
(4) Section 4(3)(b) (spent conviction not to be ground for excluding person from office, occupation etc.) shall not—
(a) prevent the Authority from refusing to grant or revoking an authorisation on the ground that an individual is not a fit and proper person to be a director, controller or manager of the institution in question or from imposing a restriction or giving a direction requiring the removal of an individual as director, controller or manager of an institution; or
(b) prevent an authorised institution, a former authorised institution or an institution which has made an application for authorisation which has not yet been disposed of from dismissing or excluding an individual from being a director, controller or manager of the institution,
by reason, or partly by reason, of a spent conviction of that individual for such an offence as is mentioned in subsection (1) above or any circumstances ancillary to such a conviction or of a failure (whether or not by that individual) to disclose such a conviction or any such circumstances.
(5) For the purposes of subsections (3) and (4) above an application by an institution is not disposed of until the decision of the Authority on the application is communicated to the institution.
(6) This section shall apply to Northern Ireland with the substitution for the references to the said Act of 1974 and section 4(1), (2) and (3)(b) of that Act of references to the Rehabilitation of Offenders (Northern Ireland) Order 1978 and Article 5(1), (2) and (3)(b) of that Order.
(1) Where an offence under this Act committed by a body corporate is proved to have been committed with the consent or connivance of, or to be attributable to any neglect on the part of any director, manager, secretary or other similar officer of the body corporate, or any person who was purporting to act in any such capacity, he, as well as the body corporate, shall be guilty of that offence and be liable to be proceeded against and punished accordingly.
(2) Where the affairs of a body corporate are managed by its members, subsection (1) above shall apply in relation to the acts and defaults of a member in connection with his functions of management as if he were a director of the body corporate.
(3) In the case of a person who by virtue of subsection (1) or (2) above or section 98(6) or (7) below is guilty of an offence under section 12(6) or 19(6) above the penalty that can be imposed on conviction on indictment shall be imprisonment for a term not exceeding two years or a fine or both.
(4) In any proceedings for an offence under this Act it shall be a defence for the person charged to prove that he took all reasonable precautions and exercised all due diligence to avoid the commission of such an offence by himself or any person under his control.
(5) No proceedings for an offence under this Act shall be instituted—
(a) in England and Wales, except by or with the consent of the Director of Public Prosecutions or the Authority; or
(b) in Northern Ireland, except by or with the consent of the Director of Public Prosecutions for Northern Ireland or the Authority.
(6) In relation to proceedings against a building society incorporated (or deemed to be incorporated) under the Building Societies Act 1986 subsection (5) above shall have effect with the substitution for references to the Authority of references to the Building Societies Commission.
(7) In relation to proceedings against a friendly society within the meaning of section 7(1)(a) of the Friendly Societies Act 1974 the reference in paragraph (a) of subsection (5) above to the Authority shall include a reference to the Chief Registrar of friendly societies; . . ..
(1) Summary proceedings for any offence under this Act may, without prejudice to any jurisdiction exercisable apart from this subsection, be taken against an institution, including an unincorporated institution, at any place at which it has a place of business, and against an individual at any place at which he is for the time being.
(2) Notwithstanding anything in section 127(1) of the Magistrates’ Courts Act 1980, any information relating to an offence under this Act which is triable by a magistrates’ court in England and Wales may be so tried if it is laid at any time within three years after the commission of the offence and within six months after the relevant date.
(3) Notwithstanding anything in section 136 of the Criminal Procedure (Scotland) Act 1995, summary proceedings for such an offence may be commenced in Scotland at any time within three years after the commission of the offence and within six months after the relevant date; and subsection (3) of that section shall apply for the purposes of this subsection as it applies for the purposes of that section.
(4) Notwithstanding anything in Article 19(1) of the Magistrates’ Courts (Northern Ireland) Order 1981, a complaint relating to such an offence which is triable by a court of summary jurisdiction in Northern Ireland may be so tried if it is made at any time within three years after the commission of the offence and within six months after the relevant date.
(5) In this section—
“the relevant date” means the date on which evidence sufficient in the opinion of the prosecuting authority to justify proceedings comes to its knowledge; and
“the prosecuting authority” means the authority by or with whose consent the proceedings are instituted in accordance with section 96 above or, in Scotland, the Lord Advocate.
(6) For the purposes of subsection (5) above, a certificate of any prosecuting authority as to the date on which such evidence as is there mentioned came to its knowledge shall be conclusive evidence of that fact.
98 Offences committed by unincorporated associations.
(1) Proceedings for an offence alleged to have been committed under this Act by an unincorporated association shall be brought in the name of that association (and not in that of any of its members) and, for the purposes of any such proceedings, any rules of court relating to the service of documents shall have effect as if the association were a corporation.
(2) A fine imposed on an unincorporated association on its conviction of an offence under this Act shall be paid out of the funds of the association.
(3) Section 33 of the Criminal Justice Act 1925 and Schedule 3 to the Magistrates’ Courts Act 1980 (procedure on charge of offence against a corporation) shall have effect in a case in which an unincorporated association is charged in England or Wales with an offence under this Act in like manner as they have effect in the case of a corporation so charged.
(4) In relation to any proceedings on indictment in Scotland for an offence alleged to have been committed under this Act by an unincorporated association, section 70 of the Criminal Procedure (Scotland) Act 1995 (proceedings on indictment against bodies corporate) shall have effect as if the association were a body corporate.
(5) Section 18 of the Criminal Justice Act (Northern Ireland) 1945 and Schedule 4 to the Magistrates’ Courts (Northern Ireland) Order 1981 (procedure on charge of offence against a corporation) shall have effect in a case in which an unincorporated association is charged in Northern Ireland with an offence under this Act in like manner as they have effect in the case of a corporation so charged.
(6) Where a partnership is guilty of an offence under this Act, every partner, other than a partner who is proved to have been ignorant of, or to have attempted to prevent the commission of the offence, shall also be guilty of that offence and be liable to be proceeded against and punished accordingly.
(7) Where any other unincorporated association is guilty of an offence under this Act, every officer of the association who is bound to fulfil any duty whereof the offence is a breach, or if there is no such officer then every member of the committee or other similar governing body, other than a member who is proved to have been ignorant of, or to have attempted to prevent the commission of the offence, shall also be guilty of that offence and be liable to be proceeded against and punished accordingly.
(1) No notice required by this Act to be given to or served on the Authority shall be regarded as given or served until it is received.
(2) Subject to subsection (1) above, any such notice may be given or served by telex or other similar means which produce a document containing the text of the communication.
(1) This section has effect in relation to any notice, direction or other document required or authorised by or under this Act to be given to or served on any person other than the Authority.
(2) Any such document may be given to or served on the person in question—
(a) by delivering it to him; or
(b) by leaving it at his proper address; or
(c) by sending it by post to him at that address; or
(d) by sending it to him at that address by telex or other similar means which produce a document containing the text of the communication.
(3) Any such document may—
(a) in the case of a body corporate, be given to or served on the secretary or clerk of that body; and
(b) in the case of any other description of institution, be given to or served on a controller of the institution.
(4) For the purposes of this section and section 7 of the Interpretation Act 1978 (service of documents by post) in its application to this section, the proper address of any person to or on whom a document is to be given or served shall be his last known address, except that—
(a) in the case of a body corporate or its secretary or clerk, it shall be the address of the registered or principal office of that body in the United Kingdom; and
(b) in the case of any other description of institution or a person having control or management of its business, it shall be that of the principal office of the institution in the United Kingdom.
(5) If the person to or on whom any document mentioned in subsection (1) above is to be given or served has notified the Authority of an address within the United Kingdom, other than his proper address within the meaning of subsection (4) above, as the one at which he or someone on his behalf will accept documents of the same description as that document, that address shall also be treated for the purposes of this section and section 7 of the Interpretation Act 1978 as his proper address.
(1) In any proceedings, a certificate purporting to be signed on behalf of the Authority and certifying—
(a) that a particular person is or is not an authorised institution or was or was not such an institution at a particular time;
(b) the date on which a particular institution became or ceased to be authorised;
(c) whether or not a particular institution’s authorisation is or was restricted;
(d) the date on which a restricted authorisation expires; or
(e) the date on which a particular institution became or ceased to be a recognised bank or licensed institution under the Banking Act 1979,
shall be admissible in evidence and, in Scotland, shall be sufficient evidence of the facts stated in the certificate.
(2) A certificate purporting to be signed as mentioned in subsection (1) above shall be deemed to have been duly signed unless the contrary is shown.
(1) References in this Act to a municipal bank are to a company within the meaning of the Companies Act 1985 which—
(a) carries on a deposit-taking business,
(b) is connected with a local authority as mentioned in subsection (2) below, and
(c) has its deposits guaranteed by that local authority in accordance with subsection (5) below.
(2) The connection referred to in paragraph (b) of subsection (1) above between a company and a local authority is that—
(a) the company’s articles of association provide that the shares in the company are to be held only by members of the local authority; and
(b) substantially all the funds lent by the company are lent to the local authority.
(3) Where on 9th November 1978 a company or its predecessor—
(a) was carrying on a deposit-taking business, and
(b) was connected with a local authority as mentioned in subsection (2) above,
that local authority or its successor may for the purposes of this Act resolve to guarantee deposits with the company.
(4) A resolution passed by a local authority under subsection (3) above may not be rescinded.
(5) Where a local authority has passed a resolution under subsection (3) above or under section 48(3) of the Banking Act 1979, that local authority and any local authority which is its successor shall be liable, if the company concerned defaults in payment, to make good to a depositor the principal and interest owing in respect of any deposit with the company, whether made before or after the passing of the resolution.
(6) For the purposes of this section—
(a) one company is the predecessor of another if that other succeeds to its obligations in respect of its deposit-taking business; and
(b) one local authority is the successor of another if, as a result of, or in connection with, an order under Part IV of the Local Government Act 1972 Part II of the Local Government Act 1992 or Part II of the Local Government and Rating Act 1997 or under Part II of the Local Government (Scotland) Act 1973 (change of local government area), it becomes connected as mentioned in subsection (2) above with a company formerly so connected with that other local authority.
(1) This section applies to any savings bank established before 28th July 1863 under an Act passed in the 59th year of King George III entitled an Act for the Protection of Banks for Savings in Scotland.
(2) For the purposes of Part II of this Act a savings bank to which this section applies becomes insolvent on the making of a winding-up order against it under Part V of the Insolvency Act 1986 or on the making of an award of sequestration on the estate of the bank.
(3) A savings bank to which this section applies shall be regarded as a relevant savings bank for the purposes of sections 68 and 69 above.
105 Meaning of “director”, “controller”, “manager”, and “associate”.
(1) In the provisions of this Act other than section 96 “director”, “controller”, “manager” and “associate” shall be construed in accordance with the provisions of this section.
(2) “Director”, in relation to an institution, includes—
(a) any person who occupies the position of a director, by whatever name called; and
(b) in the case of an institution established in a country or territory outside the United Kingdom, any person, including a member of a managing board, who occupies a position appearing to the Authority to be analogous to that of a director of a company registered under the Companies Act 1985;
and in the case of a partnership “director”, where it is used in subsections (6) and (7) below, includes a partner.
(3) “Controller”, in relation to an institution, means—
(a) a managing director of the institution or of another institution of which it is a subsidiary or, in the case of an institution which is a partnership, a partner;
(b) a chief executive of the institution or of another institution of which it is a subsidiary;
(c) a person who, satisfies the requirements of this paragraph
(d) a person in accordance with whose directions or instructions the directors of the institution or of another institution of which it is a subsidiary or persons who are controllers of the institution by virtue of paragraph (c) above (or any of them) are accustomed to act.
and
a person who is, or would be if he were an undertaking, a parent undertaking of the institution.
(3A) A person satisfies the requirements of subsection (3)(c) above in relation to an institution if, either alone or with any associate or associates—
(a) he holds 10 per cent. or more of the shares in the institution or another institution of which it is a subsidiary undertaking;
(b) he is entitled to exercise, or control the exercise of, 10 per cent. or more of the voting power at any general meeting of the institution or another institution of which it is such an undertaking; or
(c) he is able to exercise a significant influence over the management of the institution or another institution of which it is such an undertaking by virtue of—
(i) a holding of shares in; or
(ii) an entitlement to exercise, or control the exercise of, the voting power at any general meeting of,
the institution or, as the case may be, the other institution concerned;
and in this subsection ’share’ has the same meaning as in Part VII of the Companies Act 1985 or Part VIII of the Companies (Northern Ireland) Order 1986.
(4) A person who is a controller of an institution by virtue of subsection (3)(c) above is in this Act referred to as a ’shareholder controller’ of the institution; and in this Act—
(a) a ’minority shareholder controller’ means a shareholder controller not falling within paragraph (a) or (b) of subsection (3A) above;
(b) a ’10 per cent. shareholder controller’ means a shareholder controller in whose case the percentage referred to in the relevant paragraph is 10 or more but less than 20;
(c) a ’20 per cent. shareholder controller’ means a shareholder controller in whose case that percentage is 20 or more but less than 33;
(d) a ’33 per cent. shareholder controller’ means a shareholder controller in whose case that percentage is 33 or more but less than 50;
(e) a ’50 per cent. shareholder controller’ means a shareholder controller in whose case that percentage is 50 or more;
(f) a ’majority shareholder controller’ means a shareholder controller in whose case that percentage is 50 or more but less than 75; and
(g) a ’principal shareholder controller’ means a shareholder in whose case that percentage is 75 or more;
and in this subsection ’the relevant paragraph’, in relation to a shareholder controller, means whichever one of paragraphs (a) and (b) of subsection (3A) above gives the greater percentage in his case.
(5) A person who is a controller of an institution by virtue of subsection (3)(d) above is in this Act referred to as “an indirect controller” of the institution.
(5A) A person who is a controller of an institution by virtue of subsection (3)(e) above is in this Act referred to as a ’parent controller’ of the institution.
(6) “Manager”, in relation to an institution, means a person (other than a chief executive) who, under the immediate authority of a director or chief executive of the institution—
(a) exercises managerial functions; or
(b) is responsible for maintaining accounts or other records of the institution.
(7) In this section “chief executive”, in relation to an institution, means a person who, either alone or jointly with one or more other persons, is responsible under the immediate authority of the directors for the conduct of the business of the institution.
(8) Without prejudice to subsection (7) above, in relation to an institution whose principal place of business is in a country or territory outside the United Kingdom, “chief executive” also includes a person who, either alone or jointly with one or more other persons, is responsible for the conduct of its business in the United Kingdom.
(9) In this Act ’associate’, in relation to a person entitled to exercise or control the exercise of voting power in relation to, or holding shares in, an undertaking, means—
(a) the wife or husband or son or daughter of that person;
(b) the trustees of any settlement under which that person has a life interest in possession or, in Scotland, a life interest;
(c) any company of which that person is a director;
(d) any person who is an employee or partner of that person;
(e) if that person is a company—
(i) any director of that company;
(ii) any subsidiary undertaking of that company; and
(iii) any director or employee of any such subsidiary undertaking; and
(f) if that person has with any other person an agreement or arrangement with respect to the acquisition, holding or disposal of shares or other interests in that undertaking or body corporate or under which they undertake to act together in exercising their voting power in relation to it, that other person.
(10) For the purposes of subsection (9) above—
’son’ includes stepson and ’daughter’ includes stepdaughter;
’settlement’ includes any disposition or arrangement under which property is held in trust.
(1) In this Act a ’related company’, in relation to an institution or the parent undertaking of an institution, means a body corporate (other than a subsidiary undertaking) in which the institution or parent undertaking holds a qualifying capital interest.
(2) A qualifying capital interest means an interest in relevant shares of the body corporate which the institution or parent undertaking holds on a long-term basis for the purpose of securing a contribution to its own activities by the exercise of control or influence arising from that interest.
(3) Relevant shares means shares comprised in the equity share capital of the body corporate of a class carrying rights to vote in all circumstances at general meetings of the body.
(4) A holding of 20 per cent. or more of the nominal value of the relevant shares of a body corporate shall be presumed to be a qualifying capital interest unless the contrary is shown.
(5) In this paragraph “equity share capital” has the same meaning as in the Companies Act 1985 and the Companies (Northern Ireland) Order 1986.
(1) In this Act—
“associate” has the meaning given in section 105(9) above;
“authorisation” means authorisation granted by the Authority under this Act and “authorised” shall be construed accordingly;
“the Authority” means the Financial Services Authority;
“the Bank” means the Bank of England;
“bare trustee”, in relation to a deposit, means a person holding the deposit on trust for another person who has the exclusive right to direct how it shall be dealt with subject only to satisfying any outstanding charge, lien or other right of the trustee to resort to it for the payment of duty, taxes, costs or other outgoings;
“controller” has the meaning given in section 105(3) above;
“director” has the meaning given in section 105(2) above;
“debenture” has the same meaning as in the Companies Act 1985;
“deposit” and “deposit-taking business” have the meaning given in sections 5 and 6 above but subject to any order under section 7 above;
“documents” includes information recorded in any form and, in relation to information recorded otherwise than in legible form, references to its production include references to producing a copy of the information in legible form;
“former authorised institution” means an institution which was formerly an authorised institution or a recognised bank or licensed institution under the Banking Act 1979 and continues to have a liability in respect of any deposit for which it had a liability at a time when it was an authorised institution, recognised bank or licensed institution;
“group”, in relation to a body corporate, means that body corporate, any other body corporate which is its holding company or subsidiary and any other body corporate which is a subsidiary of that holding company;
“indirect controller” has the meaning given in section 105(5) above;
“institution”, except in the expression “overseas institution” means—
(a) a body corporate wherever incorporated;
(b) a partnership formed under the law of any part of the United Kingdom;
(c) a partnership or other unincorporated association of two or more persons formed under the law of a member State other than the United Kingdom; or
(d) a savings bank to which section 104 above applies;
“liquidator”, in relation to a partnership having its principal place of business in Scotland, includes a trustee appointed on the sequestrated estate of the partnership under the Bankruptcy (Scotland) Act 1985;
“local authority” means—
(a) in England and Wales, a local authority within the meaning of the Local Government Act 1972, the Common Council of the City of London or the Council of the Isles of Scilly;
(b) in Scotland, a local authority within the meaning of the Local Government (Scotland) Act 1973; and
(c) in Northern Ireland, a district council within the meaning of the Local Government Act (Northern Ireland) 1972;
“manager” has the meaning given in section 105(6) above;
“municipal bank” has the meaning given in section 103 above;
’parent controller’ has the meaning given in section 105(5A) above;
“penny savings bank” has the same meaning as in the National Savings Bank Act 1971;
“related company” has the meaning given by section 105A above;
’relevant supervisory authority’—
in relation to another member State, has the meaning given in regulation 2 of the Banking Coordination (Second Council Directive) Regulations 1992;
in relation to any other country or territory outside the United Kingdom, means the authority discharging in that country or territory functions corresponding to those of the Authority under this Act;
’shareholder controller’, ’minority shareholder controller’, ’10 per cent. shareholder controller’, ’20 per cent. shareholder controller’, ’33 per cent. shareholder controller’, ’50 per cent. shareholder controller’, ’majority shareholder controller’ and ’principal shareholder controller’ have the meanings given in section 105(4) above
(2) Section 736 of the Companies Act 1985 (meaning of subsidiary and holding company) shall apply for the purposes of this Act.
(2A) In this Act the following expressions, namely—
another member State;
connected UK authority;
credit institution;
European authorised institution;
. . .
home State;
listed activity;
parent undertaking;
recognised self-regulating organisation;
relevant supervisory authority;
. . .
subsidiary undertaking;
supervisory authority;
undertaking,
have the same meanings as in the Banking Coordination (Second Council Directive) Regulations 1992.
(2B) In this Act “The Banking Consolidation Directive” means Directive 2000/12/EC of the European Parliament and of the Council of 20 March 2000 relating to the taking up and pursuit of the business of credit institutions.
(2C) Any reference in this Act—
(a) to an undertaking being closely linked with any person, or being closely linked with any person by control; or
(b) to an undertaking’s close links with any person,
shall be construed in accordance with regulation 2 of the Financial Institutions (Prudential Supervision) Regulations 1996.
(3) Any reference in this Act to any provision of Northern Ireland legislation within the meaning of section 24 of the Interpretation Act 1978 includes a reference to any subsequent provision of that legislation which, with or without modification, re-enacts the provision referred to in this Act.
108 Minor and consequential amendments, repeals and revocations.
(1) The enactments mentioned in Schedule 6 to this Act, shall have effect with the amendments there specified, being minor amendments and amendments consequential on the provisions of this Act, but subject to any savings there mentioned.
(2) The enactments mentioned in Part I of Schedule 7 to this Act and the instruments mentioned in Part II of that Schedule are hereby repealed or revoked to the extent specified in the third column of those Parts.
(1) This Act may be cited as the Banking Act 1987.
(2) Section 91 above shall come into force on the passing of this Act and the other provisions of this Act shall come into force on such day as the Treasury may by order appoint; and different days may be appointed for different provisions or different purposes.
Section 2.
Terms of office
1 (1) The independent members of the Board shall hold office for five years except that some of those first appointed may be appointed to hold office for shorter and different periods so as to secure that all the members do not retire simultaneously.
(2) An independent member may resign his office by written notice to the Authority and the Chancellor of the Exchequer.
(3) A person shall vacate his office as an independent member if he takes up a post with executive responsibility in the Authority.
(4) Subject to sub-paragraph (3) above, a person who has ceased to be an independent member of the Board shall be eligible for re-appointment.
Removal from office
2 An independent member may be removed by the Authority with the consent of the Chancellor of the Exchequer if it is satisfied—
(a) that he has been absent from meetings of the Board for more than three months without the permission of the Board;
(b) that he has become bankrupt, that his estate has been sequestrated or that he has made an arrangement with or granted a trust deed for his creditors;
(c) that he is incapacitated by physical or mental illness; or
(d) that he is otherwise unable or unfit to discharge his functions as a member of the Board.
Increase in number of members
3 (1) The Treasury may, after consultation with the Authority, by order increase or, subject to section 2(2) of this Act, reduce the number of ex officio or independent members of the Board, provided always that there shall be a majority of independent members on the Board.
(2) Any order under this paragraph shall be subject to annulment in pursuance of a resolution of either House of Parliament.
Proceedings
4 (1) The quorum for a meeting of the Board shall be one ex officio member and three independent members.
(2) Subject to sub-paragraph (1) above, the Board shall determine its own procedure.
Facilities, remuneration and allowances
5 The Authority shall make such provision as it thinks necessary for providing the Board with facilities for the exercise of its functions and for providing remuneration, allowances or other benefits for or in respect of the independent members.
Section 4(1).
1 The central bank of a member State other than the United Kingdom.
2 The National Savings Bank.
3 A penny savings bank.
4 A municipal bank.
5 A building society incorporated (or deemed to be incorporated) under the Building Societies Act 1986.
6 (1) A friendly society within the meaning of section 7(1)(a) of the Friendly Societies Act 1974 . . ..
(2) This paragraph applies only to the acceptance of deposits in the course of carrying out transactions permitted by the rules of the society.
7 A society registered under either of the Acts mentioned in paragraph 6 above other than such a society as is there mentioned.
8 (1) Any institution which is for the time being authorised under section 3 or 4 of the Insurance Companies Act 1982 to carry on insurance business of a class specified in Schedule 1 or 2 to that Act.
(2) This paragraph applies only to the acceptance of deposits in the course of carrying on the authorised insurance business.
9 A loan society whose rules are certified, deposited and enrolled in accordance with the Loan Societies Act 1840.
10 A credit union within the meaning of the Credit Unions Act 1979 or the Credit Unions (Northern Ireland) Order 1985.
11 A body of persons certified as a school bank by the National Savings Bank or an authorised institution.
12 A local authority.
13 Any other body which by virtue of any enactment has power to issue a precept to a local authority in England or Wales or a requisition to a local authority in Scotland.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
14A
15 The European Atomic Energy Community.
16 The European Coal and Steel Community.
17 The European Economic Community.
18 The European Investment Bank.
19 The International Bank for Reconstruction and Development.
20 The International Finance Corporation.
21 The International Monetary Fund.
22 The African Development Bank.
23 The Asian Development Bank.
24 The Caribbean Development Bank.
25 The Inter-American Development Bank.
26 The European Bank for Reconstruction and Development.
Directors etc. to be fit and proper persons
1 (1) Every person who is, or is to be, a director, controller or manager of the institution is a fit and proper person to hold the particular position which he holds or is to hold.
(2) In determining whether a person is a fit and proper person to hold any particular position, regard shall be had to his probity, to his competence and soundness of judgement for fulfilling the responsibilities of that position, to the diligence with which he is fulfilling or likely to fulfil those responsibilities and to whether the interests of depositors or potential depositors of the institution are, or are likely to be, in any way threatened by his holding that position.
(3) Without prejudice to the generality of the foregoing provisions, regard may be had to the previous conduct and activities in business or financial matters of the person in question and, in particular, to any evidence that he has—
(a) committed an offence involving fraud or other dishonesty or violence;
(b) contravened any provision made by or under any enactment appearing to the Authority to be designed for protecting members of the public against financial loss due to dishonesty, incompetence or malpractice by persons concerned in the provision of banking, insurance, investment or other financial services or the management of companies or against financial loss due to the conduct of discharged or undischarged bankrupts;
(c) engaged in any business practices appearing to the Authority to be deceitful or oppressive or otherwise improper (whether unlawful or not) or which otherwise reflect discredit on his method of conducting business;
(d) engaged in or been associated with any other business practices or otherwise conducted himself in such a way as to cast doubt on his competence and soundness of judgement.
Business to be directed by at least two individuals
2 At least two individuals effectively direct the business of the institution.
Composition of board of directors
3 In the case of an institution incorporated in the United Kingdom the directors include such number (if any) of directors without executive responsibility for the management of its business as the Authority considers appropriate having regard to the circumstances of the institution and the nature and scale of its operations.
Business to be conducted in prudent manner
4 (1) The institution conducts, or, in the case of an institution which is not yet carrying on a deposit-taking business, will conduct its business in a prudent manner.
(2) An institution shall not be regarded as conducting its business in a prudent manner unless it maintains or, as the case may be, will maintain own fundswhich, together with other financial resources available to the institution of such nature and amount as are considered appropriate by the Authority, are—
(a) of an amount which is commensurate with the nature and scale of the institution’s operations; and
(b) of an amount and nature sufficient to safeguard the interests of its depositors and potential depositors, having regard to the particular factors mentioned in sub-paragraph (3) below and any other factors appearing to the Authority to be relevant.
(3) The particular factors referred to above are—
(a) the nature and scale of the institution’s operations; and
(b) the risks inherent in those operations and in the operations of any other undertaking in the same group so far as capable of affecting the institution.
(3A) An institution shall not be regarded as conducting its business in a prudent manner unless it maintains or, as the case may be, will maintain own funds which amount to not less than ecu 5 million (or an amount of equal value denominated wholly or partly in another unit of account).
(4) An institution shall not be regarded as conducting its business in a prudent manner unless it maintains or, as the case may be, will maintain adequate liquidity, having regard to the relationship between its liquid assets and its actual and contingent liabilities, to the times at which those liabilities will or may fall due and its assets mature, to the factors mentioned in sub-paragraph (3) above and to any other factors appearing to the Authority to be relevant.
(5) For the purposes of sub-paragraph (4) above the Authority may, to such extent as it thinks appropriate, take into account as liquid assets, assets of the institution and facilities available to it which are capable of providing liquidity within a reasonable period.
(6) An institution shall not be regarded as conducting its business in a prudent manner unless it makes or, as the case may be, will make adequate provision for depreciation or diminution in the value of its assets (including provision for bad or doubtful debts), for liabilities which will or may fall to be discharged by it and for losses which it will or may incur.
(7) An institution shall not be regarded as conducting its business in a prudent manner unless it maintains or, as the case may be, will maintain adequate accounting and other records of its business and adequate systems of control of its business and records.
(8) Those records and systems shall not be regarded as adequate unless they are such as to enable the business of the institution to be prudently managed and the institution to comply with the duties imposed on it by or under this Act and in determining whether those systems are adequate the Authority shall have regard to the functions and responsibilities in respect of them of any such directors of the institution as are mentioned in paragraph 3 above.
(9) Sub-paragraphs (2) to (7) above are without prejudice to the generality of sub-paragraph (1) above.
(10) In this paragraph ’ecu’ and ’own funds’ have the same meanings as in the Banking Coordination (Second Council Directive) Regulations 1992.
Integrity and skill
5 The business of the institution is or, in the case of an institution which is not yet carrying on a deposit-taking business, will be carried on with integrity and the professional skills appropriate to the nature and scale of its activities.
Minimum net assets
6 (1) The institution will at the time when authorisation is granted to it have initial capital amounting to not less than ecu 5 million (or an amount of equal value denominated wholly or partly in another unit of account).
(2) In this paragraph ’ecu’ and ’initial capital’ have the same meanings as in the Banking Coordination (Second Council Directive) Regulations 1992.
Constitution
1 (1) The Board shall consist of three ex officio members, namely—
(a) the Chairman of the Authority, who shall chair the Board;
(b) the holder of such other office within the Authority as the Chairman of the Authority may designate for the purposes of this provision; and
(c) the Deputy Governor of the Bank of England responsible for financial stability;
and such ordinary members as shall from time to time be appointed under sub-paragraph (2) below.
(2) The Chairman of the Authority shall appoint as ordinary members of the Board—
(a) three persons who are directors, controllers or managers of contributory institutions; and
(b) persons who are officers or employees of the Authority.
(3) An ex officio member of the Board may appoint an alternate member to perform his duties as a member in his absence as follows—
(a) the Chairman of the Authority or the holder of a designated office within the Authority may appoint an officer or employee of the Authority, and
(b) the Deputy Governor of the Bank of England may appoint an officer or employee of the Bank.
(4) Each ordinary member of the Board may appoint an appropriately qualified person as an alternate member to perform his duties as a member in his absence; and for this purpose a person is appropriately qualified for appointment as an alternate—
(a) by a member appointed under paragraph (a) of sub-paragraph (2) above, if he is a director, controller or manager of a contributory institution; and
(b) by a member appointed under paragraph (b) of that sub-paragraph, if he is either an officer or an employee of the Authority.
(5) Ordinary and alternate members of the Board shall hold and vacate office in accordance with the terms of their appointment.
Expenses
2 The Board may pay to its members such allowances in respect of expenses as the Board may determine.
Proceedings
3 (1) The Board shall determine its own procedure, including the quorum necessary for its meetings.
(2) The validity of any proceedings of the Board shall not be affected by any vacancy among the ex officio members of the Board or by any defect in the appointment of any ordinary or alternate member.
4 (1) The fixing of the common seal of the Board shall be authenticated by the signature of the chairman of the Board or some other person authorised by the Board to act for that purpose.
(2) A document purporting to be duly executed under the seal of the Board shall be received in evidence and deemed to be so executed unless the contrary is proved.
Accounts, audit and annual report
5 (1) The Board may determine its own financial year.
(2) It shall be the duty of the Board—
(a) to keep proper accounts and proper records in relation to the accounts; and
(b) to prepare in respect of each of its financial years a statement of accounts showing the state of affairs and income and expenditure of the Board.
(3) A statement of accounts prepared in accordance with sub-paragraph (2)(b) above shall be audited by auditors appointed by the Board and the auditors shall report to the Board stating whether in their opinion the provisions of sub-paragraph (2) above have been complied with.
(4) A person shall not be appointed as auditor by the Board under sub-paragraph (3) above unless he is eligible for appointment as a company auditor under section 25 of the Companies Act 1989.
(5) It shall be the duty of the Board, as soon as practicable after the end of each of its financial years, to prepare a report on the performance of its functions during that year.
(6) It shall be the duty of the Board to publish, in such manner as it thinks appropriate, every statement of account prepared in accordance with sub-paragraph (2)(b) above and every report prepared in accordance with sub-paragraph (5) above.
First report by Bank of England
1 If this Act comes into force in the course of a financial year of the Bank of England its first report under section 1 of this Act shall include a report on its activities during that year under the Banking Act 1979 (in this Schedule referred to as “the former Act”).
Existing recognised banks and licensed institutions
2 (1) Any institution (within the meaning of this Act) which at the coming into force of section 3 of this Act or by virtue of paragraph 4 or 5 below is—
(a) a recognised bank; or
(b) a licensed institution,
under the former Act shall be deemed to have been granted an authorisation under this Act.
(2) In relation to any such institution the reference in paragraph (a) of section 11(2) of this Act to the day on which it was authorised shall be construed as a reference to the day on which it was recognised or licensed under the former Act; and in relation to an institution recognised under the former Act by virtue of Part II of Schedule 3 to that Act that paragraph shall have effect with the omission of the words “in the United Kingdom”.
(3) In relation to any such institution the reference in section 70(4) of this Act to the time when notice was given to the Bank under subsection (1) shall be construed as a reference to the day on which it first applied for recognition or a licence under the former Act.
Conditional licences
3 (1) Any conditional licence in force under the former Act when section 3 of this Act comes into force or granted by virtue of paragraph 4 or 5 below shall be treated as an authorisation granted under this Act subject to restrictions (as to duration and conditions) corresponding to those applying to the conditional licence; but no institution shall be guilty of an offence under section 12 of this Act by reason only of a contravention of or failure to comply with a condition which is treated as a restriction of such an authorisation except so far as the condition is attributable to a variation under this Act.
(2) In relation to an application for authorisation made by an institution holding a conditional licence which by virtue of this paragraph is treated as a restricted authorisation, paragraph 6(1) of Schedule 3 to this Act shall have effect with the substitution for the reference to £1 million of a reference to £250,000.
Applications subject to appeal
4 (1) Where an application for recognition or a licence under the former Act has been refused by the Bank and at the coming into force of section 3 of this Act—
(a) an appeal is pending against that refusal; or
(b) the time for appealing against that refusal has not expired,
the repeal of the former Act shall not preclude the determination, or the bringing and determination, of the appeal and the grant or refusal of recognition or a licence as a result of that determination.
(2) Sub-paragraph (1) above does not apply to an appeal by a licensed institution against a refusal to grant it recognition.
Revocation
5 (1) Where the Bank has given an institution a notice under section 7(3) or (4) of the former Act and the proceedings pursuant to that notice under the provisions of Schedule 4 to that Act have not been concluded at the coming into force of section 3 of this Act the repeal of that Act shall not affect the operation of those provisions in relation to that notice.
(2) Paragraph 2 above does not apply to an institution which is a recognised bank or licensed institution at the coming into force of section 3 of this Act if its recognition or licence is subsequently revoked by virtue of this paragraph.
Directions
6 (1) The repeal of the former Act shall not affect the continued operation of any direction under section 8 of that Act which has been confirmed in accordance with section 9 before the repeal and any such direction may be varied or revoked as if given under section 19 of this Act.
(2) A direction may be given under section 19 of this Act to an institution which was a recognised bank or licensed institution under the former Act if—
(a) its recognition or licence under that Act was revoked or surrendered; or
(b) a disqualification notice has been served on it under section 183 of the Financial Services Act 1986;
but subsection (5) of section 19 shall apply to it as it applies to an authorised institution, taking references to the time when it was authorised as references to the time when it was recognised or licensed under the former Act.
Information and investigations
7 (1) The repeal of the former Act shall not affect the operation of any requirement imposed under section 16 of that Act before the repeal or any powers exercisable under that section in relation to any such requirement.
(2) The repeal of the former Act shall not affect the operation of section 17 of that Act in any case in which a person or persons to carry out an investigation under that section have been appointed before the repeal.
(3) Sections 42, 43 and 44 of this Act shall have effect in relation to a contravention of section 1 or 39 of the former Act as they have effect in relation to a contravention of section 3 or 35 of this Act.
Members of Deposit Protection Board
8 Any person who is an ordinary member or alternate member of the Deposit Protection Board at the coming into force of Part II of this Act shall be treated as having been appointed under Schedule 4 to this Act.
Initial contributions by excluded institutions
9 (1) On or as soon as possible after the coming into force of Part II of this Act the Deposit Protection Board shall levy an initial contribution from each authorised institution which by virtue of an order under section 23(2) of the former Act did not have such a contribution levied from it under section 24 of that Act.
(2) The amount of the initial contribution to be levied from an institution under this paragraph shall be the amount of the initial contribution that would have been levied from it under that section if it had not been exempted from levy by virtue of the order.
Maximum contributions
10 For the purposes of section 56(3) of this Act there shall be taken into account any contribution or repayment made under any provision of the former Act which corresponds to any provision of this Act.
Insolvencies before commencement of Part II
11 This Act does not affect the operation of sections 28 to 31 of the former Act in relation to any insolvency occurring before the coming into force of Part II of this Act; but section 63 of this Act shall apply (instead of section 32 of that Act) to any money received by the Board under section 31.
Borrowing
12 Any sum borrowed by virtue of section 26(3) of the said Act of 1979 shall, so far as outstanding at the coming into force of Part II of this Act, be treated as having been borrowed under section 64 of this Act.
Use of banking names
13 (1) Subject to sub-paragraph (2) below, section 67 of this Act does notprohibit the use by an institution which is incorporated in or is a partnership formed under the law of any part of the United Kingdom and is deemed to be an authorised institution by virtue of paragraph 2 above of a name which was its registered business or company name immediately before the coming into force of Part III of this Act or of section 36 of the former Act.
(2) Sub-paragraph (1) above shall cease to apply—
(a) in the case of an incorporated institution, if the total value in sterling of its issued share capital and undistributable reserves falls below their total value at the coming into force of Part III of this Act; or
(b) in the case of a partnership in respect of which one or more designated fixed capital accounts are maintained, if the total value in sterling of those accounts falls below their value at that time.
(3) Section 67 of this Act does not prohibit the use by—
(a) an authorised institution which is a wholly-owned subsidiary of an institution to which sub-paragraph (1) above applies; or
(b) a company which has a wholly-owned subsidiary which is an institution to which that sub-paragraph applies, of a name which includes the name of the institution to which that sub-paragraph applies for the purpose of indicating the connection between the two companies.
(4) In sub-paragraph (2) above “share capital” and “designated fixed capital account” have the same meaning as in subsection (2) of section 67 of this Act and “undistributable reserves” means such reserves as mentioned in paragraph (a)(ii) of that subsection.
Restriction on disclosure of information
14 In section 82(1) of this Act the reference to information received under or for the purposes of this Act includes a reference to information received under or for the purposes of the former Act.
The Bankers’ Books Evidence Act 1879
1 (1) For subsection (1)(a) of section 9 of the Bankers’ Books Evidence Act 1879 there shall be substituted—
(a) an institution authorised under the Banking Act 1987 or a municipal bank within the meaning of that Act;
.
(2) This paragraph does not affect the operation of the said Act of 1879 in relation to any entry in any banker’s book made or transaction carried out before this paragraph comes into force.
The Agricultural Credits Act 1928
2 (1) In the definition of “Bank” in section 5(7) of the Agricultural Credits Act 1928 for the words “a recognised bank or licensed institution within the meaning of the Banking Act 1979” there shall be substituted the words “ an institution authorised under the Banking Act 1987 ”.
(2) This paragraph does not affect the validity of, or the rights and obligations of the parties to, an agricultural charge within the meaning of the said Act of 1928 made before this paragraph comes into force.
The Agricultural Credits (Scotland) Act 1929
3 (1) In the definition of “Bank” in section 9(2) of the Agricultural Credits (Scotland) Act 1929 for the words “a recognised bank or licensed institution within the meaning of the Banking Act 1979” there shall be substituted the words “ an institution authorised under the Banking Act 1987 ”.
(2) This paragraph does not affect the validity of, or the rights and obligations of the parties to, an agricultural charge within the meaning of the said Act of 1929 made before this paragraph comes into force.
The Tribunals and Inquiries Act 1971
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4
The Solicitors Act 1974
5 In paragraph (a) of the definition of “bank” in section 87(1) of the Solicitors Act 1974 for the words “a recognised bank within the meaning of the Banking Act 1979” there shall be substituted the words “ an institution authorised under the Banking Act 1987 ” and paragraph (b) of that definition shall be omitted.
The Home Purchase Assistance and Housing Corporation Guarantee Act 1978
6 In paragraph 7 of Part I of the Schedule to the Home Purchase Assistance and Housing Corporation Guarantee Act 1978 for the words “Recognised banks, within the meaning of the Banking Act 1979” there shall be substituted the words “ Institutions authorised under the Banking Act 1987 ”.
The Credit Unions Act 1979
7 (1) In section 8 of the Credit Unions Act 1979 for subsections (2) and (3) there shall be substituted—
(2) In this section and section 9 below “deposit” has the meaning given in section 5 of the Banking Act 1987.
(2) In the definition of “authorised bank” in section 31(1) of that Act for paragraph (a) there shall be substituted—
an institution authorised under the Banking Act 1987 or a municipal bank within the meaning of that Act;
and the words from “and so long” to “that Schedule” shall be omitted.
The Crown Agents Act 1979
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
The Solicitors (Scotland) Act 1980
9 In section 35(2) of the Solicitors (Scotland) Act 1980 for paragraph (e) there shall be substituted—
(e) an institution authorised under the Banking Act 1987;
and paragraph (f) shall be omitted.
The British Telecommunications Act 1981
10 In the definition of “bank” in section 67(4) of the British Telecommunications Act 1981 for paragraph (b) there shall be substituted—
an institution authorised under the Banking Act 1987;
.
The Supreme Court Act 1981
11 In section 40(6) of the Supreme Court Act 1981 for the words “the Banking Act 1979” there shall be substituted the words “ the Banking Act 1987 ”.
The Housing (Northern Ireland) Order 1981
12 In Schedule 10 to the Housing (Northern Ireland) Order 1981 for paragraph 4(b) there shall be substituted—
(b) institutions authorised under the Banking Act 1987.
The Finance Act 1982
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
13
The Duchy of Cornwall Management Act 1982
14 In section 6 of the Duchy of Cornwall Management Act 1982—
(a) in subsection (3)(b) and (c) for the words “a recognised bank” there shall be substituted the words “ an authorised institution ”; and
(b) for subsection (4) there shall be substituted—
(4) In this section “authorised institution” means an institution authorised under the Banking Act 1987.
.
The County Courts Act 1984
15 In the definition of “deposit-taking institution” in section 147(1) of the County Courts Act 1984 for the words “the Banking Act 1979” there shall be substituted the words “ the Banking Act 1987 ”.
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
16
The Inheritance Tax Act 1984
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
The Companies Act 1985
18 (1) In section 209(5)(a)(i) of the Companies Act 1985 for the words “a recognised bank or licensed institution within the meaning of the Banking Act 1979” there shall be substituted the words “ an authorised institution ”.
(2) In section 232(5) of that Act for the words “recognised banks” there shall be substituted the words “ authorised institutions ”.
(3) In section 234(1) of that Act for the words “a recognised bank”, wherever they occur, there shall be substituted the words “ an authorised institution ”.
(4) In section 247(3)(c) of that Act for the words “a recognised bank or licensed institution within the meaning of the Banking Act 1979” there shall be substituted the words “ an authorised institution ”.
(5) In section 257(1) of that Act for paragraph (a) there shall be substituted—
(a) “banking company” means a company which is an authorised institution;
.
(6) In sections 338(4), 339(4), 343(1)(a) and 344(2) of that Act for the words “a recognised bank”, wherever they occur, there shall be substituted the words “ an authorised institution ”.
(7) In section 449(1)(f) and (1A) of that Act for the words “the Banking Act 1979” there shall be substituted the words “ the Banking Act 1987 ”.
(8) In section 744 of that Act the definition of “recognised bank” shall be omitted and after the definition of “articles” there shall be inserted—
“authorised institution” means a company which is an institution authorised under the Banking Act 1987;
.
(9) In Schedule 6 to that Act, in paragraph 4 for the words “a recognised bank” and “that recognised bank” there shall be substituted respectively the words “an authorised institution” and “that authorised institution” and in the heading to Part III for the words “RECOGNISED BANKS” there shall be substituted the words “ AUTHORISED INSTITUTIONS ”.
The Trustee Savings Banks Act 1985
19 In paragraph 11 of Schedule 1 to the Trustee Savings Banks Act 1985—
(a) sub-paragraph (3) shall be omitted; and
(b) in sub-paragraph (4) for the words “a licensed institution for the purposes of the Banking Act 1979” there shall be substituted the words “ an institution authorised under the Banking Act 1987 ”.
The Bankruptcy (Scotland) Act 1985
20 In section 73(1) of the Bankruptcy (Scotland) Act 1985 for the definition of “appropriate bank or institution” there shall be substituted the following—
“appropriate bank or institution” means the Bank of England, an institution authorised under the Banking Act 1987 or a person for the time being specified in Schedule 2 to that Act;
.
The Housing Act 1985
21 In the definition of “bank” in section 622 of the Housing Act 1985 for paragraph (a) there shall be substituted—
an institution authorised under the Banking Act 1987, or
.
The Housing Associations Act 1985
22 In the definition of “bank” in section 106(1) of the Housing Associations Act 1985 for paragraph (a) there shall be substituted—
an institution authorised under the Banking Act 1987, or
.
The Credit Unions (Northern Ireland) Order 1985
23 (1) In the definition of “authorised bank” in Article 2(2) of the Credit Unions (Northern Ireland) Order 1985 for sub-paragraph (a) there shall be substituted—
(a) an institution authorised under the Banking Act 1987 or a municipal bank within the meaning of that Act;
.
(2) In Article 25 of that Order for paragraphs (2) and (3) there shall be substituted—
(2) In this Article and Article 26 “deposit” has the meaning given in section 5 of the Banking Act 1987
:
The Finance Act 1986
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
The Insolvency Act 1986
25 (1) For paragraph (b) of section 8(4) of the Insolvency Act 1986 there shall be substituted—
(b) an authorised institution or former authorised institution within the meaning of the Banking Act 1987
.
(2) In section 422 of that Act for paragraphs (a) and (b) there shall be substituted the words “authorised institutions and former authorised institutions within the meaning of the Banking Act 1987”.
The Building Societies Act 1986
26 (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) In section 25(5) of that Act before the definition of “the expenses attributable to the insolvency” there shall be inserted the words—
“authorised institution” means an institution authorised under the Banking Act 1987
;
and the definitions of “recognised bank” and “licensed institution” shall be omitted.
(3) In sections 25(7) and 27(3) of that Act for the words “recognised bank, licensed institution” there shall be substituted the words “ authorised institution ”.
(4) In section 53(5) of that Act for the words “Banking Act 1979” and the words “section 19 of that Act other than subsection (4)(a)” there shall be substituted respectively the words “ Banking Act 1987 ” and “ Part V of that Act other than section 84(5) ”.
(5) Section 54(4) and (5) of that Act shall be omitted.
(6) In section 98(3)(c) of that Act for the words “a recognised bank or licensed institution for the purposes of the Banking Act 1979” there shall be substituted the words “ an authorised institution for the purposes of the Banking Act 1987 ”.
(7) In sections 102(2)(a) and 107(12) of that Act for the words “Banking Act 1979” there shall be substituted the words “ Banking Act 1987 ”.
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
The Financial Services Act 1986
27 (1) In section 75(6)(e) of the Financial Services Act 1986 for the words “Banking Act 1979” and “section 2” there shall be substituted respectively the words “ Banking Act 1987 ” and “ section 4(4) ”.
(2) In section 105(7) of that Act for the words “a recognised bank or licensed institution within the meaning of the Banking Act 1979” and “bank, institution” there shall be substituted respectively the words “ an institution authorised under the Banking Act 1987 ” and “ institution ”.
(3) In section 180(1)(f) and (6) of that Act for the words “the Banking Act 1979” there shall be substituted the words “ the Banking Act 1987 ”.
(4) In section 185 of that Act—
(a) in subsection (1) for the words “a recognised bank or licensed institution within the meaning of the Banking Act 1979” there shall be substituted the words “ an authorised institution within the meaning of the Banking Act 1987 ”; and
(b) in subsection (2) for the words “recognition or licence”, “Banking Act 1979” and “a recognised bank or licensed institution” there shall be substituted respectively the words “ authorisation ”, “ Banking Act 1987 ” and “ an authorised institution ”.
(5) In section 186 of that Act—
(a) in subsection (4) for the words “recognition or licence” there shall be substituted the word “ authorisation ”; and
(b) in subsection (5) the words from “or, as” to “1979” shall be omitted.
(6) In paragraph 2(2)(a) of Schedule 5 to that Act for the words “a recognised bank or licensed institution within the meaning of the Banking Act 1979” there shall be substituted the words “ an authorised institution within the meaning of the Banking Act 1987 ”.
The Companies (Northern Ireland) Order 1986
28 (1) In Article 2(3) of the Companies (Northern Ireland) Order 1986—
(a) after the definition of “articles” there shall be inserted—
“authorised institution” means a company which is an institution authorised under the Banking Act 1987;
(b) the definition of “recognised bank” shall be omitted.
(2) In Article 217(5)(a)(i) of that Order for the words “a recognised bank or licensed institution within the meaning of the Banking Act 1979” there shall be substituted the words “ an authorised institution ”.
(3) In Article 240(5) of that Order for the words “recognised banks” there shall be substituted the words “ authorised institutions ”.
(4) In Article 242(1) of that Order for the words “a recognised bank”, wherever they occur, there shall be substituted the words “ an authorised institution ”.
(5) In Article 255(3)(c) of that Order for the words “a recognised bank or licensed institution within the meaning of the Banking Act 1979” there shall be substituted the words “ an authorised institution ”.
(6) In Article 265(1) of that Order for paragraph (a) there shall be substituted—
(a) “banking company” means a company which is an authorised institution
.
(7) In Articles 346(4), 347(4), 351(1)(a) and 352(2) of that Order for the words “a recognised bank”, wherever they occur, there shall be substituted the words “ an authorised institution ”.
(8) In Article 442(1)(f) and (1A) of that Order for the words “the Banking Act 1979” there shall be substituted the words “ the Banking Act 1987 ”.
(9) In Schedule 6 to that Order, in paragraph 4 for the words “a recognised bank” and “that recognised bank” there shall be substituted respectively the words “ an authorised institution ” and “ that authorised institution ”, in paragraphs 14(a) and 17(a) for “(7)” there shall be substituted “ (6) ” and in the heading to Part III for the words “RECOGNISED BANKS” there shall be substituted the words “ AUTHORISED INSTITUTIONS ”.
Part I Enactments
Chapter | Short title | Extent of repeal
1974 c. 47. | The Solicitors Act 1974. | In section 87(1), in the definition of “bank”, paragraph (b) and the word “and” immediately preceding it.
1974 c. 53. | The Rehabilitation of Offenders Act 1974. | Section 7(2)(g).
1979 c. 34. | The Credit Unions Act 1979. | In section 31(1), in the definition of “authorised bank” the words from “and so long” to “that Schedule”
Schedule 3.
1979 c. 37. | The Banking Act 1979. | The whole Act except sections 38, 47, 51 and 52 and Schedule 6.
1980 c. 43. | The Magistrates’ Courts Act 1980. | In Schedule 7, paragraph 184.
1980 c. 46. | The Solicitors (Scotland) Act 1980. | In section 35(2), paragraph (f) and the word “and” immediately preceding it.
1981 c. 31. | The Insurance Companies Act 1981. | In Schedule 4, paragraph 27.
1982 c. 50. | The Insurance Companies Act 1982. | In Schedule 5, paragraph 21.
1984 c. 46. | The Cable and Broadcasting Act 1984. | In Schedule 5, paragraph 36.
1985 c. 6. | The Companies Act 1985. | Section 331(5).
In section 744, the definition of “recognised bank”.
In Schedule 6, in paragraphs 14(a) and 17(a) the figure “(5)” and the words “recognised bank”.
1985 c. 9. | The Companies Consolidation (Consequential Provisions) Act 1985. | Section 20.
In Schedule 2, the entries relating to the Banking Act 1979.
1985 c. 58. | The Trustee Savings Banks Act 1985. | Section 6.
In Schedule 1, paragraphs 8, 9 and 11(3).
Schedule 3.
1986 c. 53. | The Building Societies Act 1986. | In section 25(5), the definitions of “recognised bank” and “licensed institution”.
Section 54(4) and (5).
In Schedule 8, in paragraph 7 of Part IV the definitions of “recognised bank” and “licensed institution”.
1986 c. 53. | The Building Societies Act 1986. | In Schedule 18, paragraph 13.
1986 c. 60. | The Financial Services Act 1986. | Section 185(7).
In section 186(5), the words from “or, as” to “1979”.
Section 193.
In Schedule 13, paragraphs 3 and 4.
Part II Instruments
Number | Title | Extent of revocation
S.I. 1978/1908 (N.I. 27). | The Rehabilitation of Offenders (Northern Ireland) Order. | Article 8(2)(f).
S.I. 1986/1032 (N.I. 6). | The Companies (Northern Ireland) Order 1986. | In Article 2(3), the definition of “recognised bank”.
In Schedule 6, in paragraphs 14(a) and 17(a) the figure “(5)” and the words “recognised bank”.
S.I. 1986/1035 (N.I. 9). | The Companies Consolidation (Consequential Provisions) (Northern Ireland) Order 1986. | In Schedule 1, the entries relating to the Banking Act 1979.