Section 259 Statutory instrumentsI1

United Kingdom

(1)

A statutory instrument under this Act—

(a)

may make provision that applies generally or only for specified purposes, cases or circumstances,

(b)

may make different provision for different purposes, cases or circumstances, and

(c)

may include incidental, consequential or transitional provision.

(2)

No statutory instrument under this Act shall be treated as a hybrid instrument under Standing Orders of either House of Parliament.

(3)

The Table lists the powers to make statutory instruments under this Act and the arrangements for Parliamentary scrutiny in each case (which are subject to subsections (4) to (6)).

Section	Topic	Parliamentary scrutiny
PART 1–Special resolution regime
2	Meaning of “bank”	Draft affirmative resolution
F12(2A)	Criteria for determining what are critical functions	Negative resolution
25	Share transfer orders	Negative resolution
47	Partial transfers	Draft affirmative resolution
48	Protection of interests	Draft affirmative resolution
F248B(13A)	Further provision connected with functions under section 48B(10)	Draft affirmative resolution
48B(16)	Criteria for determining what are core business lines	Negative resolution
F348F(1) and (2)	Power to amend definition of “excluded liabilities”	Draft affirmative resolution
48G	Insolvency treatment principles	Draft affirmative resolution
48P	Safeguarding of certain financial arrangements	Draft affirmative resolution
52A	Bail-in compensation orders	Draft affirmative resolution
55	Independent valuer	Negative resolution
56	Independent valuer: money	Negative resolution
60	F4Third party compensation: partial property transfers	Draft affirmative resolution
60A	Third party compensation: instruments containing special bail-in provision	Draft affirmative resolution
62	Compensation orders	Draft affirmative resolution
69	Continuity obligations: consideration and terms	Negative resolution
F5. . .	. . .	. . .
74	Tax	Draft affirmative resolution (Commons only)
75	Power to change law	Draft affirmative resolution (except for urgent cases)
78	Public funds	Negative resolution (Commons only)
F681D	Meaning of “banking group company”	Draft affirmative resolution (except for urgent cases)
F783ZY	Enforcement of share transfer orders	Negative resolution
85	Building societies: orders	Negative resolution
86	Building societies: assets	(As for orders under section 90B of the Building Societies Act 1986)
88	Building societies: consequential	Draft affirmative resolution
89	Credit unions	Draft affirmative resolution
F8. . .	. . .	. . .
F989JA(8) (modified section 48B(17B))	Criteria for determining what are core business lines	Negative resolution
PART 2–Bank insolvency
91	Meaning of “bank”	Draft affirmative resolution
122	Application of insolvency law	Draft affirmative resolution
125	Rules	(Expansion of power in section 411 of the Insolvency Act 1986)
130	Building societies	Draft affirmative resolution
131	Credit unions	Draft affirmative resolution
132	Partnerships	(As for orders under section 420 of the Insolvency Act 1986)
133	Scottish partnerships	Negative resolution
135	Consequential provision	Draft affirmative resolution
PART 3–Bank administration
148	Sharing information	Negative resolution
149	Multiple original transfers	Draft affirmative resolution
152	Transfer from temporary public ownership	Draft affirmative resolution
F10152A	Property transfer from transferred institution	Draft affirmative resolution
156	Application of other law	Draft affirmative resolution
158	Building societies	Draft affirmative resolution
159	Credit unions	Draft affirmative resolution
160	Rules	(Expansion of power in section 411 of the Insolvency Act 1986)
163	Partnerships	(As for orders under section 420 of the Insolvency Act 1986)
164	Scottish partnerships	Negative resolution
168	Consequential provision	Draft affirmative resolution
PART 4–Financial Services Compensation Scheme
170	Contingency funding	Draft affirmative resolution
F11. . .	. . .	. . .
173	Borrowing from National Loans Fund	Negative resolution
PART 5–F12... payment systems
F13182(5C)	Meaning of “digital settlement asset” and “DSA service provider	Draft affirmative resolution
191	Bank of England directions: immunity	Negative resolution
203	Fees regulations	Negative resolution
204	Information	Negative resolution
F14206A	Services forming part of recognised F15... payment systems	Draft affirmative resolution
F16PART 5A - Wholesale cash distribution
206M	Bank of England directions: immunity	Negative resolution
206Z	Fees regulations	Negative resolution
206Z4	Information	Negative resolution
206Z6	Power to disapply regulation and enforcement provisions	Draft affirmative resolution
PART 6–Banknotes: Scotland and Northern Ireland
F17214A	Issuers of banknotes: Scotland and Northern Ireland	Draft affirmative resolution
215	Banknote regulations	Draft affirmative resolution
PART 7–Miscellaneous
230	Financial institution	Negative resolution
F18232(6)	Investment banks: definition	Draft affirmative resolution
F19232(7)	Investment banks: definition of investment activity	Negative resolution
233	Investment banks: insolvency	Draft affirmative resolution
249	F20PRA or FCA— functions	Draft affirmative resolution
251	Central banks: assistance to building societies	Draft affirmative resolution
255	Financial collateral arrangements	F21Draft affirmative resolution
PART 8–General
257	Financial assistance	Negative resolution
F22258A	Meaning of “investment firm”	Draft affirmative resolution (except for urgent cases)
262	Repeal of Banking (Special Provisions) Act 2008	None
263	Commencement	None

(4)

A power listed in subsection (5) may be exercised without a draft being laid before and approved by resolution of each House of Parliament if—

(a)

the power is being exercised for the first time, and

(b)

the person exercising it is satisfied that it is necessary to exercise it without laying a draft for approval.

(5)

The powers are those in—

(a)

section 2 (special resolution regime: meaning of “bank”),

(b)

section 47 (special resolution regime: partial transfers),

(c)

section 48 (special resolution regime: protection of interests),

(d)

section 60 (special resolution regime: third party compensation),

(da)

F23section 60A (special resolution regime: instruments containing special bail-in provision),

(e)

section 88 (special resolution regime: building societies: consequential),

(f)

section 91 (bank insolvency: meaning of “bank”),

(g)

section 122 (bank insolvency: application of insolvency law),

(h)

section 130 (bank insolvency: building societies),

(i)

section 135 (bank insolvency: consequential provision),

(j)

section 149 (bank administration: multiple original transfers),

(k)

section 152 (bank administration: transfer from temporary public ownership),

(ka)

F24section 152A (bank administration: property transfer from transferred institution),

(l)

section 156 (bank administration: application of other law),

(m)

section 158 (bank administration: building societies),

(n)

section 168 (bank administration: consequential provision), F25...

(o)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6)

Where an instrument is made in reliance on subsection (5)—

(a)

it shall lapse 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 instrument is made,

(b)

the lapse of an instrument under paragraph (a) does not invalidate anything done under or in reliance on it before its lapse and at a time when neither House has declined to approve it, and

(c)

the lapse of an instrument under paragraph (a) does not prevent the making of a new one (in new terms).

Annotations

Textual amendments

F1: Words in s. 259(3) Table inserted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 1 para. 55(2); 2020 c. 1, Sch. 5 para. 1(1)
F2: Words in s. 259(3) Table inserted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 1 para. 55(3); 2020 c. 1, Sch. 5 para. 1(1)
F3: Words in s. 259(3) Table inserted (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 31(b); S.I. 2014/3160, art. 2(1)(b)
F4: Words in s. 259(3) Table substituted (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 31(a); S.I. 2014/3160, art. 2(1)(b)
F5: Words in s. 259(3) Table omitted (1.1.2015) by virtue of The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 110(2)
F6: Words in s. 259(3) Table inserted (5.6.2014 for specified purposes, 1.8.2014 in so far as not already in force) by Financial Services Act 2012 (c. 21), ss. 100(6), 122(3) (with Sch. 20); S.I. 2014/1447, art. 2(c); S.I. 2014/1847, art. 2
F7: Words in s. 259(3) Table inserted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 110(3)
F8: Words in s. 259 Table omitted (31.12.2023) by virtue of Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 11 para. 162(7); S.I. 2023/1382, reg. 8(b) (with reg. 14)
F9: Words in s. 259(3) Table inserted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 1 para. 55(4); 2020 c. 1, Sch. 5 para. 1(1)
F10: Words in s. 259(3) Table inserted (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 31(c); S.I. 2014/3160, art. 2(1)(b)
F11: Words in s. 259(3) Table omitted (8.4.2010) by virtue of Financial Services Act 2010 (c. 28), s. 26(1)(l), Sch. 2 para. 48(2)
F12: Word in s. 259(3) Table omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 29(a)
F13: Words in s. 259(3) Table inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 39
F14: Words in s. 259(3) Table inserted (8.4.2010) by Financial Services Act 2010 (c. 28), s. 26(1)(l), Sch. 2 para. 48(3)
F15: Word in s. 259(3) Table omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 29(b)
F16: Words in s. 259(3) Table inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(d), Sch. 9 para. 11
F17: Words in s. 259(3) inserted Table (6.7.2016) by Bank of England and Financial Services Act 2016 (c. 14), ss. 38(6), 41(3); S.I. 2016/627, reg. 2(1)(bb)
F18: Word in s. 259(3) Table substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 61(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F19: Words in s. 259(3) Table inserted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 61(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F20: Words in s. 259(3) Table substituted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 61(4) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F21: Words in s. 259(3) Table substituted (29.4.2021) by Financial Services Act 2021 (c. 22), ss. 41(6), 49(1)(c)
F22: Words in s. 259(3) Table inserted (5.6.2014 for specified purposes, 1.8.2014 in so far as not already in force) by Financial Services Act 2012 (c. 21), ss. 101(8), 122(3) (with Sch. 20); S.I. 2014/1447, art. 2(f); S.I. 2014/1847, art. 2
F23: S. 259(5)(da) inserted (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 31(d); S.I. 2014/3160, art. 2(1)(b)
F24: S. 259(5)(ka) inserted (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 31(e); S.I. 2014/3160, art. 2(1)(b)
F25: S. 259(5)(o) and word omitted (8.4.2010) by virtue of Financial Services Act 2010 (c. 28), s. 26(1)(l), Sch. 2 para. 48(4)

Commencement

I1: S. 259 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 14