(1) This section applies for the purposes of section 81ZBB.
(2) The PRA must treat Condition 3 as met if satisfied that it would be met but for financial assistance provided by—
(a) the Treasury, or
(b) the Bank of England,
disregarding ordinary market assistance offered by the Bank of England on its usual terms.
(3) The Bank of England must treat Condition 4 as met if satisfied that it would be met but for financial assistance of the kind mentioned in subsection (2).
(4) For the purposes of Condition 3, a banking group company is failing or likely to fail if—
(a) it is contravening or likely to contravene a regulatory requirement where that contravention is serious in nature or directly related to a deterioration in the financial situation of the banking group company which threatens the viability of—
(i) the banking group company, or
(ii) another undertaking in the same resolution group,
(b) it is failing, or is likely to fail, to meet the approval conditions set out in section 192R(3) to (6) of the Financial Services and Markets Act 2000 in circumstances where that failure—
(i) would justify the taking of measures in relation to the company by the PRA under section 192T(1) of that Act, and
(ii) is serious in nature,
(c) the value of the assets of the banking group company is less than the amount of its liabilities,
(d) the banking group company is unable to pay its debts or other liabilities as they fall due,
(e) paragraph (c) or (d) (or both) will, in the near future, apply to the banking group company, or
(f) extraordinary public financial support is required in respect of the banking group company and subsection (5) does not apply to it.
(5) This subsection applies where, in order to remedy a serious disturbance in the economy of the United Kingdom and preserve financial stability, the extraordinary financial support takes any of the following forms—
(a) a State guarantee to back liquidity facilities provided by the Bank of England,
(b) a State guarantee of newly issued liabilities,
(c) an injection of own funds, or purchase of capital instruments, at prices and on terms that do not confer an advantage upon the banking group company, where none of the circumstances referred to in subsection (4)(a), (b), (c), (d) or (e) are present at the time the public support is granted and none of Cases 1 to 4 in section 6A apply.
(6) Before determining that Condition 3 is met, the PRA must consult the Bank of England.
(7) Before determining whether or not Conditions 4, 5 and (where applicable) 8 are met, the Bank of England must consult—
(a) the Treasury,
(b) the PRA, and
(c) the FCA.
(8) Before determining that Conditions 6 and 7 are met the Bank of England must consult—
(a) the Treasury,
(b) the PRA, and
(c) the FCA.
(9) The special resolution objectives are not relevant to Conditions 3 and 4.
(10) In this section “regulatory requirement” means a requirement imposed—
(a) by or under the Financial Services and Markets Act 2000,
(b) by or under the capital requirements regulation including any assimilated law that was originally made under Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26th June 2013 on prudential requirements for credit institutions and investment firms,
(c) by any enactment which was relied on by the United Kingdom immediately before IP completion day to implement the capital requirements directive and its implementing measures or any assimilated law originally made under that directive, or
(d) by the Bank of England under this Act,
and for the purposes of this definition, “capital requirements directive” means Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.
(1) The Bank of England may exercise a stabilisation power in respect of a banking group company in accordance with section 12A(2) if the following conditions are met.
(2) Condition 1 is that either—
(a) the PRA is satisfied that Condition 1 of the general conditions is met in respect of a bank in the same group and the Bank of England is satisfied that Conditions 2, 3 and 4 of the general conditions are met in respect of that bank, or
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) a relevant third-country authority of a third-country institution in the same group is satisfied that any conditions required by the law of the third country to be met before third-country resolution action may be taken are met in relation to that third-country institution.
(2A) For the purposes of determining if a requirement of Condition 1 is met, the PRA, Bank of England ... or relevant third-country authority (as the case may be) may ignore any transfer of losses or capital made between members of the group.
(3) Condition 2 is that the Bank of England is satisfied that the exercise of the power in respect of the banking group company is necessary, having regard to the public interest in the advancement of one or more of the special resolution objectives.
(4) Condition 3 is that the banking group company is an undertaking incorporated in, or formed under the law of any part of, the United Kingdom.
(5) Before determining whether Condition 2 is met, and if so how to react, the Bank of England must consult—
(a) the Treasury,
(b) the PRA, and
(c) the FCA.
(6) In exercising a stabilisation power in reliance on this section the Bank of England must have regard to the need to minimise the effect of the exercise of the power on other undertakings in the same group.
(7) The definitions in section 81B(9) apply for the purposes of this section.
81BB Bail-in option: supplemental powers in relation to certain holding companies
(1) Without prejudice to the operation of section 81BA, the Bank of England may exercise a stabilisation power in respect of a banking group company in accordance with section 12A(2) if the following conditions are met.
(2) Condition 1 is that the banking group company is an undertaking incorporated in, or formed under the law of any part of, the United Kingdom.
(3) Condition 2 is that the banking group company is an entity within subsection (2A) of section 81AA.
(4) Condition 3 is that the PRA is satisfied that the banking group company is failing or likely to fail.
(5) Condition 4 is that the Bank of England is satisfied that, having regard to timing and other relevant circumstances, it is not reasonably likely that (ignoring the stabilisation powers) action will be taken by or in respect of the banking group company that will result in Condition 3 ceasing to be met.
(6) Condition 5 is that the Bank of England is satisfied that the exercise of the power in respect of the banking group company is necessary, having regard to the public interest in the advancement of one or more of the special resolution objectives.
(7) Condition 6 is that the Bank of England is satisfied that one or more of the special resolution objectives would not be met to the same extent by the winding up of the banking group company.
(8) In exercising a stabilisation power in reliance on this section, the Bank of England must have regard to the need to minimise the effect of the exercise of the power on other undertakings in the same group.
(1) This section applies for the purposes of section 81BB.
(2) The PRA must treat Condition 3 as met if satisfied that it would be met but for financial assistance provided by—
(a) the Treasury, or
(b) the Bank of England,
disregarding ordinary market assistance offered by the Bank of England on its usual terms.
(3) The Bank of England must treat Condition 4 as met if satisfied that it would be met but for financial assistance of the kind mentioned in subsection (2).
(4) For the purposes of Condition 3, a banking group company is failing or likely to fail if—
(a) it is contravening or likely to contravene a regulatory requirement where that contravention is serious in nature or directly related to a deterioration in the financial situation of the banking group company which threatens the viability of—
(i) the banking group company, or
(ii) another undertaking in the same resolution group,
(b) it is failing, or is likely to fail, to satisfy the approval conditions set out in section 192R(3) to (6) of the Financial Services and Markets Act 2000 in circumstances where that failure—
(i) would justify the taking of measures in relation to the company by the PRA under section 192T(1) of that Act, and
(ii) is serious in nature,
(c) the value of the assets of the banking group company is less than the amount of its liabilities,
(d) the banking group company is unable to pay its debts or other liabilities as they fall due,
(e) paragraph (c) or (d) (or both) will, in the near future, apply to the banking group company, or
(f) extraordinary public financial support is required in respect of the banking group company and subsection (5) does not apply to it.
(5) This subsection applies where, in order to remedy a serious disturbance in the economy of the United Kingdom and preserve financial stability, the extraordinary financial support takes any of the following forms—
(a) a State guarantee to back liquidity facilities provided by the Bank of England,
(b) a State guarantee of newly issued liabilities,
(c) an injection of own funds, or purchase of capital instruments, at prices and on terms that do not confer an advantage upon the banking group company, where none of the circumstances referred to in subsection (4)(a), (b), (c), (d) or (e) are present at the time the public support is granted and none of Cases 1 to 4 in section 6A apply.
(6) Before determining that Condition 3 is met, the PRA must consult the Bank of England.
(7) Before determining whether or not Condition 4 is met, the Bank of England must consult—
(a) the Treasury,
(b) the PRA, and
(c) the FCA.
(8) Before determining that Conditions 5 and 6 are met the Bank of England must consult—
(a) the Treasury,
(b) the PRA, and
(c) the FCA.
(9) The special resolution objectives are not relevant to Conditions 3 and 4.
(10) In this section “regulatory requirement” means a requirement imposed—
(a) by or under the Financial Services and Markets Act 2000,
(b) by or under the capital requirements regulation including any assimilated law that was originally made under Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26th June 2013 on prudential requirements for credit institutions and investment firms,
(c) by any enactment which was relied on by the United Kingdom immediately before IP completion day to implement the capital requirements directive and its implementing measures or any assimilated law originally made under that directive, or
(d) by the Bank of England under this Act,
and for the purposes of this definition, “capital requirements directive” means Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on access to the activity of credit institutions and the prudential supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC.
(1) In the following provisions references to banks include references to banking group companies—
(a) section 10(1), ...
(aa) section 48Z, and
(b) section 75(5)(a).
(1A) Where section 6B applies to a banking group company by virtue of section 81AA, sections 6B to 6D apply with the following modifications—
(a) references to the bank are to be read as references to the banking group company,
(aa) where Case 4 in section 81AA applies, section 6B(2) is to be read as providing that “the mandatory reduction provision” is provision which, together with the mandatory reduction provision made in respect of any other subsidiary of the resolution entity that is in the same resolution group as the banking group company, produces the results referred to in subsection (1AA) of this section,
(b) in section 6B, in subsection (8) the reference to section 6A is to be read as a reference to section 81AA and subsection (9) is to be ignored,
(c) in sections 6B and 6C references, which (by virtue of paragraph (a)) are read as references to a UK parent undertaking of a banking group company, include, where the banking group company satisfied section 81D(1)(a) by reference to a bank which is not a UK parent undertaking of the banking group company, a reference to that bank,
(d) for the purposes of section 6D, references to a bank in sections 48L(3), 48O and 48T are to be read as references to the banking group company, and, where the banking group company satisfied section 81D(1)(a) by reference to a bank (“the failing bank”), those references to a bank (except the first reference in section 48T(1)) are also to be read as including a reference to the failing bank.
(1AA) The results are that—
(a) the principal amount of the relevant capital instruments or relevant internal liabilities of the banking group company is reduced, or
(b) such instruments or liabilities of the banking group company are converted (directly or indirectly) into Common Equity Tier 1 instruments,
(or both (a) and (b)) in accordance with the principle that losses of the bank referred to in relation to that banking group company in section 81AA(8A)(a) are effectively passed on to, and the bank is recapitalised by, the resolution entity that is in the same resolution group as the banking group company.
(1B) Where the Bank of England makes a mandatory reduction instrument in respect of a banking group company, section 6E applies (with any necessary modifications) as if the banking group company were a bank.
(2) Where the Bank of England exercises a stabilisation power in respect of a banking group company in reliance on section 81B , 81ZZBA, 81ZBA or 81ZBB, the provisions relating to the stabilisation powers and the bank administration procedure contained in this Act (except sections 7 , 8 and 8ZA) and any other enactment apply (with any necessary modifications) as if the banking group company were a bank.
(3) For the purposes of the application of section 143 (grounds for applying for bank administration order), the reference in subsection (2) to the Bank of England exercising a stabilisation power includes a case where the Bank of England intends to exercise such a power.
(1) This section applies where the Bank of England has power under section 81BA or section 81BB to exercise a stabilisation power in respect of a banking group company.
(2) The provisions relating to the stabilisation powers and the bank administration procedure contained in this Act (except section 7) and any other enactment apply (with any necessary modifications) as if the banking group company were a bank.
(3) Where the banking group company mentioned in subsection (1) is a parent undertaking of the bank mentioned in section 81BA(2) (“the bank”)—
(a) the provisions in this Act relating to resolution instruments are to be read in accordance with the general rule in subsection (4), but
(b) that is subject to the modifications in subsection (5);
and provisions in this Act and any other enactment are to be read with any modifications that may be necessary as a result of paragraphs (a) and (b).
(4) The general rule is that the provisions in this Act relating to resolution instruments (including supplemental resolution instruments) are to be read (so far as the context permits)—
(a) as applying in relation to the bank as they apply in relation to the parent undertaking, and
(b) so, in particular, as allowing any provision that may be made in a resolution instrument in relation to the parent undertaking to be made (also or instead) in relation to the bank.
(5) Where the banking group company mentioned in subsection (1) is a parent undertaking of the bank ... or third-country institution mentioned in section 81BA(2) (“the group entity”) —
(a) section 41A (transfer of property subsequent to resolution instrument) applies as if the reference in subsection (2) to the bank were to the parent undertaking, the bank and any other bank which is or was in the same group;
(b) section 48V (onward transfer)—
(i) applies as if the references in subsection (3) to “the bank” included the group entity, the parent undertaking and any other bank which is or was in the same group, and with the omission of subsection (4) of that section, and
(ii) is to be read as permitting the transfer of securities only if they are held by (or for the benefit of) the parent undertaking or a subsidiary company of the parent undertaking;
(c) section 48W (reverse transfer) applies as if the references in subsections (2) and (3) to “the bank” included the group entity, the parent undertaking and any other bank which is or was in the same group.
(6) Where section 48B (special bail-in provision) applies in accordance with subsection (4) (so that section 48B applies in relation to the bank mentioned in section 81BA(2) as it applies in relation to the parent undertaking mentioned in subsection (3)), the provision that may be made in accordance with section 48B(1)(b) (see also rule 3(a) and (b) of section 48B(5)) includes provision replacing a liability (of any form) of that bank with a security (of any form or class) of the parent undertaking.
(7) Where the banking group company mentioned in subsection (1) is a parent undertaking of the bank mentioned in section 81BA(2)—
(a) section 214B of the Financial Services and Markets Act 2000 (contribution to costs of special resolution regime) applies, and
(b) the reference in subsection (1)(b) of that section to the bank, and later references in that section, are treated as including references to any other bank which is a subsidiary undertaking of the parent undertaking (but not the parent undertaking itself).
(1) In this Part “banking group company” means an undertaking—
(a) which is (or, but for the exercise of a stabilisation power, would be) in the same group as a bank ... or third-country institution (within the meaning of section 81AA(14)), and
(b) in respect of which any conditions specified in an order made by the Treasury are met.
(2) An order may require the Bank of England to consult specified persons before determining whether the conditions are met.
(3) An order—
(a) is to be made by statutory instrument, and
(b) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.
(4) If an order contains a statement that the Treasury are of the opinion that, by reason of urgency, it is necessary to make the order without complying with subsection (3)(b)—
(a) the order may be made, and
(b) the order lapses unless approved by resolution of each House of Parliament during the period of 28 days (ignoring periods of dissolution, prorogation or adjournment of either House for more than 4 days) beginning with the day on which the order is made.
(5) The lapse of an order under subsection (4)(b)—
(a) does not invalidate anything done under or in reliance on the order before the lapse and at a time when neither House has declined to approve the order, and
(b) does not prevent the making of a new order (in new terms).
(6) Undertakings are in the same group for the purposes of sections 81AA to 81CA and this section if they are group undertakings in respect of each other.
(7) Expressions defined in the Companies Act 2006 have the same meaning in sections 81B to 81CA and this section as in that Act.
(1) The Treasury may take a parent undertaking of a bank (the “holding company”) into temporary public ownership, in accordance with section 13(2), if the following conditions are met.
(2) Condition 1 is that the PRA is satisfied that the general conditions for the exercise of a stabilisation power set out in section 7 are met in respect of the bank.
(3) Condition 2 is that the Treasury are satisfied that it is necessary to take action in respect of the holding company for the purpose specified in Condition A or B of section 9.
(4) Condition 3 is that the holding company is an undertaking incorporated in, or formed under the law of any part of, the United Kingdom.
(5) Before determining whether Condition 2 is met the Treasury must consult—
(a) the PRA,
(aa) the FCA, and
(b) the Bank of England.
(6) Expressions used in this section have the same meaning as in the Companies Act 2006.
(1) In the following provisions references to banks include references to holding companies—
(a) section 10(1),
(aa) section 12ZA(2)(c),
(b) section 13(3),
(c) section 16(1), and
(d) section 75(5)(a).
(2) Where the Treasury take a bank's holding company into temporary public ownership in reliance on section 82—
(a) section 20(2) applies to (i) directors of the holding company, (ii) directors of the bank, and (iii) directors of a bank in the same group,
(b) section 25(2) applies as if references to a bank were references to a holding company,
(c) sections 27 to 29 apply as if references to a bank were references to a holding company,
(d) a share transfer may be made in respect of securities which were issued by the bank or by another bank which is or was in the same group; and a transfer—
(i) shall be made by onward share transfer order under section 28 or by reverse share transfer order under section 29 (in addition to any that may be made under those sections as applied by paragraph (c) above),
(ii) may be made under section 28 only in respect of securities held by (or for the benefit of) the holding company or a subsidiary undertaking of the holding company,
(iii) is not subject to section 28(4), and
(iv) is not subject to the restriction in section 29(3) that the securities issued by the bank were transferred under the original order (as defined in section 29(1)).
(e) section 45 applies as if—
(i) the reference to a bank in subsection (1) were a reference to a holding company, and
(ii) a reference to the bank in subsection (3) were a reference to the holding company, the bank and any other bank which is or was in the same group,
(f) sections 65 to 68 apply, with—
(i) references to the bank or the transferred bank taken as references to the bank, the holding company and any other bank which is or was in the same group, and
(ii) references to securities of the bank taken as including references to securities of the holding company (so that, in particular, sections 65(1)(a)(ii) and 68(1)(a) include references to the earlier transfer of securities issued by the holding company),
(g) other provisions of this Act about share transfer orders apply with any necessary modifications,
(h) section 214B of the Financial Services and Markets Act 2000 applies (contribution to costs of special resolution regime...), and
(i) the reference in section 214B(1)(b) to the bank, and later references in the section, are treated as including references to any other bank which is also a subsidiary undertaking of the holding company (but not to the holding company itself).
(3) A reference in this Act or another enactment to a share transfer order in respect of securities issued by a bank includes (so far as the context permits) a reference to a share transfer order in respect of securities issued by a holding company.
(4) In so far as sections 47 and 60 apply in relation to orders treated as property transfer instruments by virtue of section 45(5)(b) or 46(5)(b) (including those sections as applied by virtue of subsection (2) above) the reference in section 47(1) to the property of a bank includes a reference to the property of a holding company and of any other bank which is or was in the same group.
(5) Expressions used in this section have the same meaning as in the Companies Act 2006.
(6) A reference to two banks being in the same group is a reference to their being group undertakings in respect of each other.
(1) This section applies only to information and documents reasonably required in connection with the exercise by the Bank of England of functions conferred by or under—
(a) this Part, or
(b) any other enactment giving effect to the resolution and recovery directive.
(2) The Bank of England may, by notice in writing given to a bank or banking group company, require the bank or banking group company—
(a) to provide specified information or information of a specified description, or
(b) to produce specified documents or documents of a specified description.
(3) The information or documents must be provided or produced—
(a) before the end of such reasonable period as may be specified, and
(b) at such place as may be specified.
(4) An officer who has written authorisation from the Bank of England to do so may require a bank or banking group company without delay—
(a) to provide the officer with specified information or information of a specified description, or
(b) to produce to the officer specified documents or documents of a specified description.
(5) The Bank of England may require any information provided under this section to be provided in such form as it may reasonably require.
(6) The Bank of England may require—
(a) any information provided, whether in a document or otherwise, to be verified in such manner, or
(b) any document produced to be authenticated in such manner,
as it may reasonably require.
(7) The powers conferred by subsections (2) and (4) may also be exercised by the Bank to impose requirements on a person who is connected with a bank.
(8) “Officer” means an officer of the Bank of England, and includes a member of the Bank’s staff or an agent of the Bank.
(9) “Specified” means—
(a) in subsections (2) and (3), specified in the notice, and
(b) in subsection (4), specified in the authorisation.
(10) For the purposes of this section, a person is connected with a bank if that person is or has at any relevant time been—
(a) a member of that bank’s group,
(b) a controller of that bank (within the meaning of section 422 of the Financial Services and Markets Act 2000),
(c) any other member of a partnership of which that bank is a member, or
(d) in relation to that bank, a person mentioned in Part 1 of Schedule 15 to the Financial Services and Markets Act 2000 (reading references in that Part to the authorised person as references to the bank).
(11) In subsection (10)(a) “group” has the meaning given by section 3(2)(b).
(1) This section applies where the Bank of England has required or could require a person to whom subsection (2) applies (“the person concerned”) to provide information or produce documents with respect to any matter (“the matter concerned”) under section 83ZA.
(2) This subsection applies to—
(a) a bank (“B”),
(b) a member of B’s group,
(c) a partnership of which B is a member, or
(d) a person who has at any relevant time been a person falling within paragraph (a), (b) or (c),
who is, or was at the relevant time, carrying on a business.
(3) The Bank of England may either—
(a) by notice in writing given to the person concerned, require that person to provide the Bank with a report on the matter concerned, or
(b) itself appoint a person to provide the Bank with a report on the matter concerned.
(4) When acting under subsection (3)(a), the Bank may require the report to be in such form as may be specified in the notice.
(5) The Bank must give notice of an appointment under subsection (3)(b) to the person concerned.
(6) The person appointed to make a report—
(a) must be a person appearing to the Bank to have the skills necessary to make a report on the matter concerned, and
(b) where the appointment is to be made by the person concerned, must be a person nominated or approved by the Bank.
(7) It is the duty of—
(a) the person concerned, and
(b) any person who is providing (or who has at any time provided) services to the person concerned in relation to the matter concerned,
to give the person appointed to prepare a report all such assistance as the appointed person may reasonably require.
(8) The obligation imposed by subsection (7) is enforceable, on the application of the Bank, by an injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.
(9) The Bank may, in relation to an appointment under subsection (3)(b), require B to pay to the Bank a fee to cover the expenses incurred by the Bank in relation to the appointment.
(10) In this section “group” has the meaning given by section 3(2)(b).
83ZC Appointment of persons to carry out general investigations
(1) This section applies only for the purposes of the functions of the Bank of England mentioned in section 83ZA(1).
(2) If it appears to the Bank of England that there is good reason for doing so, the Bank may appoint one or more competent persons to conduct an investigation on its behalf into—
(a) the nature, conduct or state of the business of a bank,
(b) a particular aspect of that business, or
(c) the ownership or control of a bank.
(3) If a person appointed under subsection (2) thinks it necessary for the purposes of the investigation, that person may also investigate the business of a person who is or has at any relevant time been—
(a) a member of a group of which the bank under investigation is part, or
(b) a partnership of which the bank is a member.
(4) A person appointed under subsection (2) who decides to investigate the business of any person under subsection (3) must give that person written notice of that decision.
(5) In this section—
“business” includes any part of a business, and
“group” has the meaning given by section 3(2)(b).
83ZD Appointment of person to carry out investigations in particular cases
(1) This section applies if it appears to the Bank of England that there are circumstances suggesting that a person may have failed to comply with any relevant requirement.
(2) The Bank may appoint one or more competent persons to conduct an investigation on its behalf.
(3) In this section “relevant requirement” means—
(a) a requirement imposed by the Bank of England under this Part (other than section 83ZR (regulatory sanctions)), or
(b) a requirement imposed by or under—
(i) any other provision of this Act, or
(ii) any other Act or subordinate legislation,
which , immediately before IP completion day, gave effect to the recovery and resolution directive.
83ZE Investigations etc in support of foreign resolution authorities
(1) On receiving a request to which subsection (3) applies from a foreign resolution authority, the Bank of England may—
(a) exercise the power conferred by section 83ZA, or
(b) appoint one or more competent persons to investigate any matter.
(2) Accordingly, for the purposes of subsection (1)(a), section 83ZA(1) has effect as if it also referred to information and documents reasonably required by the Bank of England to meet such a request.
(3) This subsection applies to a request if the request is made by a foreign resolution authority in connection with the exercise by that authority of—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) functions in relation to third-country resolution action (within the meaning of section 89H) corresponding to the stabilisation powers of the Bank of England under this Part.
(4) An investigator appointed under subsection (1)(b) has the same powers as an investigator appointed under section 83ZD.
(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(6) In deciding whether or not to exercise its investigative power, the Bank may take into account in particular—
(a) whether, in the territory of the foreign resolution authority concerned, corresponding assistance would be given to the Bank,
(b) whether the case concerns the breach of a law, or other requirement, which has no close parallel in the United Kingdom or involves the assertion of a jurisdiction not recognised by the United Kingdom,
(c) the seriousness of the case and its importance to persons in the United Kingdom,
(d) whether it is otherwise appropriate in the public interest to give the assistance sought.
(7) The Bank may decide that it will not exercise its investigative power unless the foreign resolution authority undertakes to make such contribution towards the cost of its exercise as the Bank considers appropriate.
(8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(10) “Foreign resolution authority” means—
(a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(b) an authority, in a country or territory outside the United Kingdom, which exercises functions referred to in subsection (3)(b).
(11) “Investigative power” means one of the powers mentioned in subsection (1).
(1) This section applies if the Bank of England appoints one or more competent persons (“investigators“) under section 83ZC or 83ZD to conduct an investigation on its behalf.
(2) The Bank must give written notice of the appointment of an investigator to the person who is the subject of the investigation (“the person under investigation”).
(3) A notice under subsection (2) must—
(a) specify the provisions under which, and as a result of which, the investigator was appointed, and
(b) state the reason for the investigator’s appointment.
(4) Nothing prevents the Bank from appointing a person who is a member of its staff as an investigator.
(5) An investigator must make a report of the investigation to the Bank.
(6) The Bank may, by a direction to an investigator, control—
(a) the scope of the investigation,
(b) the period during which the investigation is to be conducted,
(c) the conduct of the investigation, and
(d) the reporting of the investigation.
(7) A direction may, in particular—
(a) confine the investigation to particular matters;
(b) extend the investigation to additional matters;
(c) require the investigator to discontinue the investigation or to take only such steps as are specified in the direction;
(d) require the investigator to make such interim reports as are so specified.
(8) If there is a change in the scope or conduct of the investigation and, in the opinion of the Bank, the person under investigation is likely to be significantly prejudiced by not being made aware of it, that person must be given written notice of the change.
(9) If the appointment is under section 83ZD, subsections (2) and (8) do not apply if the Bank believes that the notice required by the subsection in question would be likely to result in the investigation being frustrated.
83ZG Powers of persons appointed under section 83ZC
(1) This section applies to an investigator appointed under section 83ZC to conduct an investigation on behalf of the Bank of England.
(2) The investigator may require the person who is the subject of the investigation (“the person under investigation“) or any person connected with the person under investigation—
(a) to attend before the investigator at a specified time and place and answer questions, or
(b) otherwise to provide such information as the investigator may require for the purposes of the investigation.
(3) The investigator may also require any person to produce at a specified time and place any specified documents or documents of a specified description.
(4) A requirement under subsection (2) or (3) may be imposed only so far as the investigator reasonably considers the question, provision of information or production of the document to be relevant to the purposes of the investigation.
(5) For the purposes of this section, a person (“B”) is connected with the person under investigation (“A”) if B is or has at any relevant time been—
(a) a member of A’s group;
(b) a controller of A;
(c) a partnership of which A is a member; or
(d) in relation to A, a person mentioned in Part 1 or 2 of Schedule 15 to the Financial Services and Markets Act 2000 (reading references in those Parts to the authorised person or the person under investigation as references to A).
(6) In this section—
“controller” has the same meaning as in the Financial Services and Markets Act 2000 (see section 422),
“group” has the meaning given by section 3(2)(b), and
“specified” means specified in a notice in writing.
83ZH Powers of persons appointed as a result of section 83ZD
(1) This section applies to an investigator appointed under section 83ZD to conduct an investigation on behalf of the Bank of England.
(2) The investigator has—
(a) the powers conferred by section 83ZG on an investigator appointed under section 83ZC, and
(b) the powers conferred by subsections (3) and (4).
(3) The investigator may require the person who is the subject of the investigation (“the person under investigation“) to give the investigator all assistance in connection with the investigation which that person is reasonably able to give.
(4) The investigator may require a person who is neither the person under investigation nor a person connected with the person under investigation—
(a) to attend before the investigator at a specified time and place and answer questions, or
(b) otherwise to provide such information as the investigator may require for the purposes of the investigation.
(5) A requirement may only be imposed under subsection (4) if the investigator is satisfied that the requirement is necessary or expedient for the purposes of the investigation.
(6) Section 83ZG(5) and (6) applies for the purposes of this section.
83ZI Admissibility of statements made to investigators
(1) A statement made to an investigator appointed under section 83ZC or 83ZD by a person in compliance with an information requirement is admissible in evidence in any proceedings, so long as it also complies with any requirements governing the admissibility of evidence in the circumstances in question.
(2) But in criminal proceedings in which that person is charged with an offence to which this subsection applies—
(a) no evidence relating to the statement may be adduced, and
(b) no question relating to it may be asked,
by or on behalf of the prosecution, the PRA or the FCA (as the case may be), unless evidence relating to it is adduced, or a question relating to it is asked, in the proceedings by or on behalf of that person.
(3) Subsection (2) applies to any offence other than one under—
(a) section 83ZN(4),
(b) section 398 of the Financial Services and Markets Act 2000 (misleading FCA or PRA: residual cases),
(c) section 5 of the Perjury Act 1911 (false statements made otherwise than on oath),
(d) section 44(2) of the Criminal Law (Consolidation) (Scotland) Act 1995 (false statements made otherwise than on oath), or
(e) Article 10 of the Perjury (Northern Ireland) Order 1979.
(4) “Information requirement” means a requirement imposed by an investigator under section 83ZG, 83ZH or 83ZJ.
83ZJ Information and documents: supplemental provision
(1) If the Bank of England has power under this Part to require a person to produce a document but it appears that the document is in the possession of a third person, that power may be exercised in relation to the third person.
(2) If a document is produced in response to a requirement imposed under this Part, the person to whom it is produced may—
(a) take copies or extracts from the document, or
(b) require the person producing the document, or any relevant person, to provide an explanation of the document.
(3) A document so produced may be retained for so long as the person to whom it is produced considers that it is necessary to retain it (rather than copies of it) for the purposes for which the document was requested.
(4) If the person to whom a document is so produced has reasonable grounds for believing—
(a) that the document may have to be produced for the purposes of any legal proceedings, and
(b) that it might otherwise be unavailable for those purposes,
it may be retained until the proceedings are concluded.
(5) If a person who is required under this Part to produce a document fails to do so, the Bank or an investigator may require that person to state, to the best of that person’s knowledge and belief, where the document is.
(6) A lawyer may be required under this Part to furnish the name and address of the lawyer’s client.
(7) No person may be required under this Part to disclose information or produce a document in respect of which the person (“A”) owes an obligation of confidence by virtue of carrying on the business of banking unless—
(a) A is the person under investigation or a member of that person’s group,
(b) the person to whom the obligation of confidence is owed is the person under investigation or a member of that person’s group,
(c) the person to whom the obligation of confidence is owed consents to the disclosure or production, or
(d) the imposing on A of a requirement with respect to such information or document has been specifically authorised by the Bank.
(8) If a person claims a lien on a document, its production under this Part does not affect the lien.
(9) In this section—
“controller” has the same meaning as in the Financial Services and Markets Act 2000 (see section 422),
“group” has the meaning given by section 3(2)(b),
“investigator” means a person appointed under section 83ZC or 83ZD,
“relevant person”, in relation to a person who is required to produce a document, means a person who—
has been or is or is proposed to be a director or controller of that person,
has been or is an auditor of that person,
has been or is an actuary, accountant or lawyer appointed or instructed by that person, or
has been or is an employee of that person.
(1) A person may not be required under this Part to produce, disclose or permit the inspection of protected items.
(2) “Protected items” means—
(a) communications between a professional legal adviser and that adviser’s client or any person representing such a client which fall within subsection (3),
(b) communications between a professional legal adviser, that adviser’s client or any person representing such a client and any other person which fall within subsection (3) (as a result of paragraph (b) of that subsection), and
(c) items which—
(i) are enclosed with, or referred to in, such communications,
(ii) fall within subsection (3), and
(iii) are in the possession of a person entitled to possession of them.
(3) A communication or item falls within this subsection if it is made—
(a) in connection with the giving of legal advice to the client, or
(b) in connection with, or in contemplation of, legal proceedings and for the purposes of those proceedings.
(4) A communication or item is not a protected item if it is held with the intention of furthering a criminal purpose.
(1) A justice of the peace may issue a warrant under this section if satisfied on information on oath given by or on behalf of the Secretary of State, the Bank of England or an investigator that there are reasonable grounds for believing that the first, second or third set of conditions is satisfied.
(2) The first set of conditions is—
(a) that a person on whom an information requirement has been imposed has failed (wholly or in part) to comply with it, and
(b) that on the premises specified in the warrant—
(i) there are documents which have been required, or
(ii) there is information which has been required.
(3) The second set of conditions is—
(a) that the premises specified in the warrant are premises of a bank or a member of the same group (within the meaning of section 3(2)(b)) as a bank,
(b) that there are on the premises documents or information in relation to which an information requirement could be imposed, and
(c) that if such a requirement were to be imposed—
(i) it would not be complied with, or
(ii) the documents or information to which it related would be removed, tampered with or destroyed.
(4) The third set of conditions is—
(a) that an offence mentioned in section 83ZN(4) or (5) has been (or is being) committed by any person,
(b) that there are on the premises specified in the warrant documents or information relevant to whether that offence has been (or is being) committed,
(c) that an information requirement could be imposed in relation to those documents or that information, and
(d) that if such a requirement were to be imposed—
(i) it would not be complied with, or
(ii) the documents or information to which it related would be removed, tampered with or destroyed.
(5) A warrant under this section authorises a constable—
(a) to enter the premises specified in the warrant,
(b) to search the premises and take possession of any documents or information appearing to be documents or information of a kind in respect of which a warrant under this section was issued (“the relevant kind”) or to take, in relation to any such documents or information, any other steps which may appear to be necessary for preserving them or preventing interference with them,
(c) to take copies of, or extracts from, any documents or information appearing to be of the relevant kind,
(d) to require any person on the premises to provide an explanation of any document or information appearing to be of the relevant kind or to state where it may be found, and
(e) to use such force as may be reasonably necessary.
(6) A warrant under this section may be executed by any constable.
(7) The warrant may authorise persons to accompany any constable who is executing it.
(8) The powers in subsection (5) may be exercised by a person authorised by the warrant to accompany a constable; but that person may exercise those powers only in the company of, and under the supervision of, a constable.
(9) In England and Wales, sections 15(5) to (8) and 16(3) to (12) of the Police and Criminal Evidence Act 1984 (execution of search warrants and safeguards) apply to warrants issued under this section.
(10) In Northern Ireland, Articles 17(5) to (8) and 18(3) to (12) of the Police and Criminal Evidence (Northern Ireland) Order 1989 apply to warrants issued under this section.
(11) In the application of this section to Scotland—
(a) for the reference to a justice of the peace substitute references to a justice of the peace or a sheriff; and
(b) for the references to information on oath substitute references to evidence on oath.
(12) “Investigator” means an investigator appointed under section 83ZC or 83ZD.
(13) “Information requirement” means a requirement imposed—
(a) by the Bank of England under section 83ZA or 83ZJ, or
(b) by an investigator under section 83ZG, 83ZH or 83ZJ.
83ZM Retention of documents obtained under section 83ZL
(1) Any document of which possession is taken under section 83ZL (“a seized document”) may be retained so long as it is necessary to retain it (rather than copies of it) in the circumstances.
(2) A person claiming to be the owner of a seized document may apply to a magistrates’ court or (in Scotland) the sheriff for an order for the delivery of the document to the person appearing to the court or sheriff to be the owner.
(3) If on an application under subsection (2) the court or (in Scotland) the sheriff cannot ascertain who is the owner of the seized document the court or sheriff (as the case may be) may make such order as the court or sheriff thinks fit.
(4) An order under subsection (2) or (3) does not affect the right of any person to take legal proceedings against any person in possession of a seized document for the recovery of the document.
(5) Any right to bring proceedings (as described in subsection (4)) may only be exercised within 6 months of the date of the order made under subsection (2) or (3).
(1) If a person other than the investigator (“the defaulter”) fails to comply with a requirement imposed on the defaulter under section 83ZG, 83ZH or 83ZJ, the person imposing the requirement may certify that fact in writing to the court.
(2) If the court is satisfied that the defaulter has failed without reasonable excuse to comply with the requirement, it may deal with the defaulter (and, in the case of a body corporate, any director or other officer) as if that person were in contempt.
(3) “Officer”, in relation to a limited liability partnership, means a member of the limited liability partnership.
(4) A person who knows or suspects that an investigation is being or is likely to be conducted under section 83ZC, 83ZD or 83ZE is guilty of an offence if—
(a) that person falsifies, conceals, destroys or otherwise disposes of a document which that person knows or suspects is or would be relevant to such an investigation, or
(b) that person causes or permits the falsification, concealment, destruction or disposal of such a document,
unless that person shows that that person had no intention of concealing facts disclosed by the document from the investigator.
(5) A person who, in purported compliance with a requirement imposed on that person by any relevant requirement—
(a) provides information which that person knows to be false or misleading in a material particular, or
(b) recklessly provides information which is false or misleading in a material particular,
is guilty of an offence.
(6) Any person who intentionally obstructs the exercise of any rights conferred by a warrant under section 83ZL is guilty of an offence.
(7) Subsection (8) applies if section 85(2) of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 is in force on the relevant day.
(8) A person guilty of an offence under subsection (4), (5) or (6) is liable, on summary conviction—
(a) in England and Wales, to imprisonment for a term not exceeding 3 months or a fine, or both;
(b) in Scotland or Northern Ireland, to imprisonment for a term not exceeding 3 months or a fine not exceeding level 5 on the standard scale, or both.
(9) Subsection (10) applies if section 85(2) of the Legal Aid, Sentencing and Punishment of Offenders Act 2012 is not in force on the relevant day.
(10) A person guilty of an offence under subsection (4), (5) or (6) is liable, on summary conviction to imprisonment for a term not exceeding 3 months or a fine not exceeding level 5 on the standard scale, or both.
(11) In this section—
“court” means—
the High Court;
in Scotland, the Court of Session;
“relevant day” means the day on which the Bank Recovery and Resolution Order 2014 (which inserted this section into this Act) was made;
“relevant requirement” has the meaning given in section 83ZD.
(1) Proceedings for an offence under section 83ZN may be instituted—
(a) in England and Wales, only by the Bank of England or by or with the consent of the Director of Public Prosecutions, and
(b) in Northern Ireland, only by the Bank of England or by or with the consent of the Director of Public Prosecutions for Northern Ireland.
(2) In exercising its power to institute proceedings for an offence under section 83ZN, the Bank must comply with any conditions or restrictions imposed in writing by the Treasury.
(3) Conditions or restrictions may be imposed under subsection (2) in relation to proceedings generally, or such proceedings or categories of proceedings as the Treasury may direct.
83ZP Offences under section 83ZN by bodies corporate etc
(1) If an offence under section 83ZN committed by a body corporate is shown—
(a) to have been committed with the consent or connivance of an officer, or
(b) to be attributable to any neglect on the part of an officer,
the officer as well as the body corporate is guilty of the offence and liable to be proceeded against and punished accordingly.
(2) If the affairs of a body corporate are managed by its members, subsection (1) applies in relation to the acts and defaults of a member in connection with that member’s functions of management as if that member were a director of the body.
(3) If an offence under section 83ZN committed by a partnership is shown—
(a) to have been committed with the consent or connivance of a partner, or
(b) to be attributable to any neglect on the part of a partner,
the partner as well as the partnership is guilty of the offence and liable to be proceeded against and punished accordingly.
(4) In subsection (3) “partner” includes a person purporting to act as partner.
(5) “Officer” in relation to a body corporate means—
(a) a director, member of the committee of management, chief executive, manager, secretary or other similar officer of the body, or a person purporting to act in any such capacity, and
(b) an individual who is a controller of the body (and for these purposes, “controller” has the meaning given in section 422 of the Financial Services and Markets Act 2000).
(6) If an offence under section 83ZN committed by an unincorporated association (other than a partnership) is shown—
(a) to have been committed with the consent or connivance of an officer of the association or a member of its governing body, or
(b) to be attributable to any neglect on the part of such an officer or member,
that officer or member as well as the association is guilty of the offence and liable to be proceeded against and punished accordingly.
83ZQ Injunctions: prevent failure to comply with relevant requirement
(1) If, on the application of the Bank of England, the court is satisfied that there is a reasonable likelihood that any person will contravene a relevant requirement, the court may make an order restraining (or in Scotland an interdict prohibiting) the contravention.
(2) The jurisdiction conferred by this section is exercisable—
(a) in England and Wales and Northern Ireland, by the High Court, and
(b) in Scotland, by the Court of Session.
(3) In this section “relevant requirement” has the meaning given in section 83ZD.
(1) If the Bank of England considers that a person has failed to comply with a relevant requirement imposed on the person, it may do one or more of the following—
(a) publish a statement to that effect;
(b) impose on that person a penalty, in respect of the failure, of such amount as it considers appropriate;
(c) with a view to ensuring that the failure ceases or is not repeated or the consequences of the failure are mitigated, direct that person to refrain from any conduct;
(d) prohibit that person from holding an office or position involving responsibility for taking decisions about the management of—
(i) a named bank,
(ii) a bank of a specified description, or
(iii) any bank.
(2) A prohibition under subsection (1)(d) may apply—
(a) for a specified period,
(b) until further notice, or
(c) permanently.
(3) If the Bank of England considers that a failure by a person to comply with a relevant requirement occurred with the consent or connivance of, or was attributable to any neglect on the part of, an officer of that person, it may do one or more of the following—
(a) publish a statement to that effect;
(b) impose on that officer a penalty, in respect of the failure, of such amount as it considers appropriate;
(c) with a view to ensuring that the failure ceases or is not repeated or the consequences of the failure are mitigated, direct that person to refrain from any conduct specified in the order.
(4) A penalty under this section—
(a) must be paid to the Bank of England, and
(b) may be enforced by the Bank as a debt.
(5) In this section “relevant requirement” has the meaning given in section 83ZD.
When determining the type of sanction, and level of any penalty, to be imposed on a person under section 83ZR, the Bank of England must take into account all relevant circumstances, including where appropriate—
(a) the gravity and the duration of the failure,
(b) the degree of responsibility of the person,
(c) the financial strength of the person,
(d) the amount of profits gained or losses avoided by the person,
(e) the losses for third parties caused by the failure,
(f) the level of co-operation of the person with the Bank,
(g) previous failures by the person, and
(h) any potential systemic consequences of the failure.
(1) If the Bank of England proposes to impose a sanction on a person under section 83ZR(1) or (3) it must give that person a warning notice.
(2) Section 387 of the Financial Services and Markets Act 2000 applies in relation to a warning notice given under subsection (1) and to the Bank as it applies in relation to a warning notice given under that Act and to the regulator which gave that notice, subject to subsections (3) and (4).
(3) In complying with section 387(1)(a) of that Act, a warning notice must in particular—
(a) if it is about a proposal to publish a statement, set out the terms of the statement,
(b) if it is about a proposal to impose a penalty, specify the amount of the penalty,
(c) if it is about a proposal to direct a person to refrain from certain conduct, specify the conduct, and
(d) if it is about a proposal to impose a prohibition on holding an office or other position, specify the extent of the prohibition.
(4) For the purposes of subsection (2), section 387 of that Act has effect as if subsections (1A) and (3A) were omitted.
(1) If the Bank of England decides to impose a sanction on a person under section 83ZR(1) or (3) it must without delay give that person a decision notice.
(2) If the decision is to publish a statement, the decision notice must set out the terms of the statement.
(3) If the decision is to impose a penalty, the decision notice must specify the amount of the penalty.
(4) If the decision is to refrain from certain conduct, the decision notice must specify the conduct.
(5) If the decision is to impose a prohibition on holding an office or other position, the decision notice must specify the extent of the prohibition.
(6) Section 388 of the Financial Services and Markets Act 2000 applies in relation to a decision notice given under subsection (1) and the Bank as it applies in relation to a decision notice given under that Act and the regulator which gave that notice, subject to subsection (7).
(7) Section 388 of that Act has effect for the purposes of subsection (6) as if—
(a) in subsection (1)(e)(i) for “this Act” there were substituted “section 83ZW of the Banking Act 2009”, and
(b) subsections (1A) and (2) were omitted.
(1) Sections 389, 390 and 392 to 394 of the Financial Services and Markets Act 2000 apply in relation to a warning notice given under section 83ZT, a decision notice given under section 83ZU and the Bank as they apply in relation to a warning notice or decision notice given under that Act and the regulator which gave that notice, subject to subsections (2) to (4).
(2) Section 389 of that Act has effect as if subsection (2) were omitted,
(3) Section 390 of that Act has effect as if—
(a) in subsection (2A), in paragraph (a), for “133(6)(b)” there were substituted “133(5)(b)”,
(b) in that paragraph, for “133(6)” there were substituted “133(5)”,
(c) for subsection (4) there were substituted—
(4) A final notice about a direction under section 83ZR(1)(c) or (3)(c) of the Banking Act 2009 or a prohibition under section 83ZR(1)(d) of that Act must—
(a) specify the conduct to which the direction relates or the extent of the prohibition, and
(b) give details of the date on which the direction or prohibition has effect.
.
(4) Section 392 has effect as if for paragraphs (a) and (b) there were substituted—
(a) warning notice given under section 83ZT(1) of the Banking Act 2009;
(b) a decision notice given under section 83ZU(1) of the Banking Act 2009.
.
(1) If the Bank of England decides to impose a sanction on a person under section 83ZR, the person may appeal to the Upper Tribunal.
(2) The Bank of England may not impose a sanction while an appeal under this section could be brought or is pending.
83ZX Injunctions: failure to comply with certain section 83ZR sanctions
(1) If, on the application of the Bank of England, the court is satisfied—
(a) that there is a reasonable likelihood that there will be a compliance failure, or
(b) that there has been a compliance failure and there is a reasonable likelihood that it will continue or be repeated,
the court may make an order restraining the conduct constituting the failure.
(2) If, on the application of the Bank, the court is satisfied—
(a) that there has been a compliance failure, and
(b) that there are steps which could be taken for remedying the failure,
the court may make an order requiring anyone who appears to have been knowingly concerned in the failure to take such steps as the court may direct to remedy it.
(3) If, on the application of the Bank of England, the court is satisfied—
(a) that there may have been a compliance failure by any person, or
(b) that a person may have been knowingly concerned in a compliance failure,
the court may make an order restraining that person from dealing with any assets which it is satisfied the person is reasonably likely to deal with.
(4) “Compliance failure” means—
(a) a failure to comply with a direction under section 83ZR(1)(c) or (3)(c), or
(b) a breach of a prohibition imposed under section 83ZR(1)(d).
(5) The jurisdiction conferred by this section is exercisable—
(a) in England and Wales and Northern Ireland, by the High Court, and
(b) in Scotland, by the Court of Session.
(6) In this section—
(a) references to an order restraining anything are, in Scotland, to be read as references to an interdict prohibiting that thing,
(b) references to remedying a failure include mitigating its effect, and
(c) references to dealing with assets include disposing of them.
(1) In the case of a warning notice under section 83ZT(1)—
(a) neither the Bank of England nor a person to whom it is given or copied may publish the notice,
(b) a person to whom the notice is given or copied may not publish any details concerning the notice unless the Bank has published those details, and
(c) after consulting the persons to whom the notice is given or copied, the Bank may publish such information about the matter to which the notice relates as it considers appropriate.
(2) A person to whom a decision notice under section 83ZU(1) is given or copied may not publish the notice or any details concerning it unless the Bank has published the notice or those details.
(3) A notice of discontinuance must state that, if the person to whom the notice is given consents, the Bank may publish such information as it considers appropriate about the matter to which the discontinued proceedings related.
(4) A copy of a notice of discontinuance must be accompanied by a statement that, if the person to whom the notice is copied consents, the Bank may publish such information as it considers appropriate about the matter to which the discontinued proceedings related, so far as relevant to that person.
(5) Subject to subsection (8), where the Bank gives a decision notice it may publish such information about the matter to which the notice relates as it considers appropriate.
(6) Where the Bank publishes information under subsection (5) and the person to whom the decision notice is given refers the matter to the Upper Tribunal, the Bank must, without undue delay, publish on its official website information about the status of the appeal and its outcome.
(7) Subject to subsection (8), where the Bank gives a final notice—
(a) it must, without undue delay, publish details of any sanction to which the notice relates on its internet website, and
(b) it may publish such other information about the matter to which the notice relates as it considers appropriate.
(8) Information about a matter to which a decision notice or a final notice relates must be published anonymously where—
(a) the sanction is imposed (or proposed to be imposed) on an individual and following an obligatory prior assessment publication of personal data is found to be disproportionate, or
(b) were it not published anonymously, publication would—
(i) jeopardise the stability of financial markets or an ongoing criminal investigation, or
(ii) cause, insofar as it can be determined, disproportionate damage to the persons involved.
(9) Where subsection (8) applies, the person publishing the information may make such arrangements as to the publication of information (including as to the timing of publication) as are necessary to preserve the anonymity of the person on whom the sanction is imposed.
(10) Where the Bank publishes information in accordance with subsections (6) to (9), it must—
(a) ensure the information remains on its official website for at least five years, unless the information is personal data and the data protection legislation requires the information to be retained for a different period, ...
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(11) In this section—
“the data protection legislation” has the same meaning as in the Data Protection Act 2018 (see section 3 of that Act);
“notice of discontinuance” and “final notice” have the same meaning as in sections 389 and 390 of the Financial Services and Markets Act 2000 (which are applied (with modifications) by section 83ZV).
In connection with the exercise of its powers to impose sanctions under section 83ZR, the Bank of England must take such steps as it considers appropriate to co-operate with—
(a) the FCA , and
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(c) any person who exercises functions outside the United Kingdom equivalent to those exercisable by the Bank under this Part or any other enactment which, immediately before IP completion day, gave effect to the recovery and resolution directive.
(1) The Bank of England may, by agreement made with the FCA, delegate to the FCA its enforcement functions, subject to such restrictions and conditions, and for such period, as may be specified in the agreement.
(2) For the purposes of this section—
(a) “enforcement functions” of the Bank of England are its functions under, or by virtue of—
(i) section 83ZD;
(ii) section 83ZF;
(iii) section 83ZJ;
(iv) section 83ZL;
(v) section 83ZO;
(vi) sections 83ZQ to 83ZZ;
(b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(3) The Bank of England must make provision for the reimbursement of any expenses incurred by the FCA in the performance, in accordance with the terms of any agreement, of any functions delegated under this section.
(1) The Treasury may by regulations make provision for the enforcement of obligations imposed by or under a share transfer order.
(2) Regulations—
(a) may confer jurisdiction on a court or tribunal,
(b) may not impose a penalty or create a criminal offence,
(c) may make provision which has effect in respect of an order only if applied by the order.
(3) Regulations are to be made by statutory instrument and are subject to annulment in pursuance of a resolution of either House of Parliament.
(1) In the application of this Part to an FCA-regulated bank the modifications specified in the Table apply.
(2) In this section—
“ FCA-regulated bank ” means a bank which does not carry on any activity which is a PRA-regulated activity for the purposes of the Financial Services and Markets Act 2000;
“ immediate group ” has the meaning given by section 421ZA of the Financial Services and Markets Act 2000;
“ PRA-authorised person ” has the meaning given by section 2B(5) of that Act.
TABLE OF MODIFICATIONS
Provision | Modification
Section 3 | Treat the definition of “normal insolvency proceedings” in subsection (1) as including investment bank special administration established by the Investment Bank Special Administration Regulations 2011 (S.I. 2011/245).
Section 6A | Treat the reference to the PRA in subsections (3)(a) and (7) as references to the FCA.
Section 6C | Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 7 | (a) Treat the references to the PRA in subsections (1), (5A), (5C), (5D) and (5F) as references to the FCA. (b) . . . (c) If the bank has as a member of its immediate group a PRA-authorised person the FCA must consult the PRA before determining whether or not Condition 2 is met. (d) Subsections (5G)(a) and (5H)(a) do not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 7A | In subsection (1), the reference to the PRA does not apply unless the bank has as a member of its immediate group a PRA-authorised person
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Section 8ZA | (a) Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person. . . .
Section 9 | Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
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Section 24 | Ignore subsection (1)(c).
Section 25 | Ignore subsection (2)(c).
Section 26 | Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 26ZA | Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 26A | Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 27 | Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 28 | Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 29 | Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 30 | Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 31 | Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 41 | Ignore subsection (1)(c).
Section 41A | Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 42 | Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 42A | Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 43 | Subsection (7)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 44 | Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 44A | Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 44D | Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 44E | Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 45 | Subsection (8)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 46 | Subsection (7)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 48H | Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 48U | Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 48V | Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 48W | Subsection (9)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 63 | Treat the reference to insolvency in subsection (1A), as including investment bank special administration, established by the Investment Bank Special Administration Regulations 2011
Section 66 | Treat the reference to insolvency in subsection (1ZA), as including investment bank special administration, established by the Investment Bank Special Administration Regulations 2011
Section 81AA | Treat the references to the PRA in subsections (3)(b) and (5)(a) as references to the FCA.
Section 81B | (a) Treat the references to the PRA in subsections (2) and (2A) as references to the FCA. (b) Ignore subsection (6)(b) unless the bank has as a member of its immediate group a PRA-authorised person.
Section 81ZZBA | Treat the reference to the PRA in subsection (4) as a reference to the FCA.
Section 81ZZBB | (a) Treat the references to the PRA in subsections (2) and (6) as references to the FCA. (b) Subsections (7)(b) and (8)(b) do not apply unless the banking group company has as a member of its immediate group a PRA-authorised person.
Section 81ZBA | (a) Treat the references to the PRA in subsections (2)(a) and (2A) as references to the FCA. (b) Ignore subsection (8)(a) unless the bank has as a member of its immediate group a PRA-authorised person. . . .
Section 81ZBB | Treat the reference to the PRA in subsection (4) as a reference to the FCA.
Section 81ZBC | (a) Treat the references to the PRA in subsections (2) and (6) as references to the FCA. (b) Subsections (7)(b) and (8)(b) do not apply unless the banking group company has as a member of its immediate group a PRA-authorised person.
Section 81BA | (a) Treat the references to the PRA in subsections (2)(a) and (2A) as references to the FCA. (b) Subsection (5)(b) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 81BB | Treat the reference to the PRA in subsection (4) as a reference to the FCA.
Section 81BC | (a) Treat the references to the PRA in subsections (2) and (6) as references to the FCA. (b) Subsections (7)(b) and (8)(b) do not apply unless the banking group company has as a member of its immediate group a PRA-authorised person.
Section 82 | (a) Treat the reference to the PRA in subsection (2) as a reference to the FCA. (b) Ignore subsection (5)(a).
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This Part applies to building societies (within the meaning of section 119 of the Building Societies Act 1986) as it applies to banks, subject to—
(a) the provisions of the Table, and
(b) sections 84ZA to 84D (which relate to the second and fourth stabilisation options ).
Section | Topic | Modification or note
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13 | Temporary public ownership | The procedure provided by section 85 has effect in place of share transfer orders.
14 to 32 | Transfer of securities | The procedure provided by section 85 has effect in place of share transfer orders; and— sections 28 and 30 do not apply, and section 27 applies following an order under section 85 as following a share transfer order.
33 | Property transfer instrument: nature | A property transfer instrument in respect of a building society may— cancel shares in the building society; confer rights and impose liabilities in place of cancelled shares (whether by way of actual or deemed shares in a transferee building society or by way of other rights and liabilities in relation to a transferee bank).
33 and 36 | Property transfer instrument: continuity | A property transfer instrument in respect of a bank which provides for transfer to a building society may confer rights and impose liabilities by way of actual or deemed shares in the building society.
34 | Property transfer instrument: effect | A property transfer instrument may, in particular, have effect without causing sections 93 to 102D of the Building Societies Act 1986 (mergers and transfers) to apply.
42 | Supplemental property transfer instrument | A supplemental property transfer instrument in respect of a building society may— cancel shares in the building society; confer rights and impose liabilities in place of cancelled shares (whether by way of actual or deemed shares in a transferee building society or by way of other rights and liabilities in relation to a transferee bank).
45 | Temporary public ownership: property transfer | (a) Section 45 applies following an order under section 85 as following a share transfer order. (b) A property transfer order in respect of a building society may cancel shares in the building society.
49 to 62 | Compensation | (a) A reference to a share transfer order includes a reference to an order under section 85. (b) A resolution fund order may not be made under section 51(2)(b). (c) If and in so far as an order under section 85 provides for the issue of new deferred shares, section 51(2) shall not apply but the Treasury may make a third party compensation order.
63 to 75 | Incidental functions | A reference to a share transfer order includes a reference to an order under section 85.
(1) This section applies for the purpose of the exercise of the second stabilisation option (transfer to a bridge bank) in relation to a building society.
(2) A share transfer instrument made under section 12(2)(a) may—
(a) convert the building society into a company (“the successor company”), and
(b) make other provision for the purposes of, or in connection with the conversion of the building society.
(3) The provision which may be made under subsection (2)(b) includes—
(a) provision cancelling shares in the building society;
(b) provision cancelling membership rights in the building society;
(c) provision converting shares in the building society into deposits with the successor company;
(d) provision conferring rights and imposing liabilities in place of cancelled shares and membership rights;
(e) provision requiring the FCA to cancel the building society's registration under the Building Societies Act 1986 at a time specified in or determined in accordance with the instrument;
(f) provision that any person approved for the purposes of Part 5 of the Financial Services and Markets Act 2000 (performance of regulated activities) in relation to the building society immediately before the share transfer instrument is made continues to be approved for those purposes in relation to the successor company (but without affecting the power of the FCA or the PRA to vary or withdraw an approval);
(g) provision for the successor company on its incorporation to be wholly owned by a bridge bank specified in the instrument (the “parent undertaking”);
(h) where provision is made under paragraph (g), provision—
(i) for the transfer of liabilities from the successor company to the parent undertaking, and for the creation of corresponding liabilities of the successor company to the parent undertaking;
(ii) replacing a liability (of any form) of the building society or the successor company with a liability or security (of any form or class) of the parent undertaking.
(4) Section 15 (share transfer instruments) is to be read as if the provision referred to in subsection (1) of that section included the provision referred to in subsections (2) and (3) of this section.