Article 39 Directions under section 19 of the Banking ActI1

United Kingdom

(1)

Where—

(a)

immediately before commencement a person was subject to a direction given under section 19 of the Banking Act; and

(b)

by virtue of this Order he has a Part IV permission on commencement,

the direction has effect, after commencement, as if it were a requirement (or requirements) imposed on him under section 43.

(2)

If the direction was one falling within section 20(2) of the Banking Act but was not confirmed under that section before commencement, the requirement having effect under paragraph (1) ceases to have effect at the end of 28 days beginning with the day on which the direction was given.

(3)

References in paragraphs (1) and (2) to a direction do not include references to a direction varying a previous direction; but where a direction has been varied before commencement the references in paragraph (1) are to the direction as varied even in a case where, by virtue of section 20(2)(b) of the Banking Act, the variation was due to cease to have effect at a time falling after commencement unless confirmed by the Authority before that time.

(4)

A requirement having effect under paragraph (1) ceases to have effect on the occurrence of a relevant event.

(5)

In the case of a person who immediately before commencement held an authorisation granted (or deemed to be granted) under section 9 of the Banking Act, the reference in paragraph (4) to a relevant event is to be read as follows—

(a)

if the requirement originally had effect as a direction given by virtue of section 19(1)(a) or (b) of the Banking Act (cases where Banking Act authorisation was to be revoked), and—

(i)

the Authority decides to discontinue the proceedings originated by the proposal to revoke the person’s authorisation under the Banking Act; or

(ii)

the decision to revoke the authorisation is reversed by a tribunal,

the giving of the notice of discontinuance under section 389, or the tribunal’s determination, is a relevant event;

(b)

if the requirement originally had effect as a direction given by virtue of section 19(1)(d) of the Banking Act (notice of surrender of authorisation) and the person subject to it withdraws the application, the withdrawal of the application is a relevant event.

(6)

In the case of a person who immediately before commencement did not hold an authorisation granted (or deemed to be granted) under section 9 of the Banking Act, but formerly held such an authorisation, the reference in paragraph (4) to a relevant event is to the person’s ceasing to have any liability in respect of deposits (within the meaning of the Banking Act) for which he had a liability at a time when he held that authorisation.

(7)

Nothing in paragraphs (2) or (4) prevents the Authority from exercising its power under section 45 to vary the person’s Part IV permission in order to continue in effect the requirement having effect under paragraph (1).

Annotations

Commencement

I1: Art. 39 in force at 1.12.2001, see art. 1(2)(b)