Paragraph 2

Substitute—

“(2)

The scheme manager has the functions, conferred on it by this Part.”.

After the definition of “building society”, insert

• ““commencement” means the beginning of the day on which section 19 of the Financial Servcies and Markets Act 2000 comes into force;”.

After the definition of “participating non-EEA institution”, insert ““the scheme manager” has the same meaning as in Part XV of the Financial Services and Markets Act 2000;”.

In subsection (1), for the words from “if at any time” to “becomes insolvent” substitute “in relation to an institution to which this subsection applies which was, before commencement, insolvent”.

In subsection (1)(a), omit “out of the Fund”.

In subsection (2), for “is” in each case it is used, substitute “was, at the time it became insolvent,”.

In subsections (1) and (2)—

• for “becomes” substitute “became”; and

• for the words from “deposits made” to the end substitute “prior to commencement deposits made with the institution had become due and payable and had not yet been repaid”.

In subsection (4), immediately before “a UK institution” insert “an institution which was, at the time it became insolvent,”.

“(1)

The scheme manager has the functions, powers and duties conferred on it by this Part.”.

In subsection (4), after the definition of “the 1995 Regulations”, insert—

• ““the Authority” means the Financial Services Authority;

• “commencement” means the beginning of the day on which section 19 of the Financial Services and Markets Act 2000 comes into force;”

In the definition of “participating institution”, after “means” insert “an insolvent institution which was, at the time it became insolvent”.

At the end of subsection (4), insert—

• ““the scheme manager” has the same meaning as in Part XV of the Financial Services and Markets Act 2000.

(4A)

In the protective scheme provisions of this Part—

• “the expenses attributable to the insolvency”with reference to a participating institution insolvency means payments made to investors under section 27, together with any expenses (including administrative expenses attributable to that insolvency) incurred by the scheme manager in connection with the making of such payments or in connection with that insolvency;

• “insolvency payments to investors” means payments made to investors under section 27 and any expenses incurred in connection with the making of such payments, and “insolvency payment” has a corresponding meaning.”

In subsection (1) and (2)—

• for “becomes” substitute “became”;

• after “only if” insert “prior to commencement”;

• “have become” substitute “had become”; and

• for “have not” substitute “had not”.

In subsection (4), so far as it relates to paragraph (b), for “Commission” substitute “Authority”.

In subsection (1), for the words from “if at any time” to “become insolvent” substitute “in relation to a participating institution”.

In subsection (1)(a) omit “out of the Fund”.

In subsection (2A)—

• for “Commission” substitute “Authority”;

• for “becomes” substitute “became”.

In subsection (3), for “an authorised institution” substitute “an authorised person within the meaning of the Financial Services and Markets Act 2000 who has permission to accept deposits (within the meaning of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001)”.

In subsections (3B) and (5C), before “a participating EEA institution”, insert “a participating institution which was, when it became insolvent,”.

In subsection (4)(b), at the end insert “or under the Financial Services Compensation Scheme established under Part XV of the Financial Services and Markets Act 2000”.

In subsection (5), omit “which has become insolvent”.

In subsection (6), for “the Board” substitute “the scheme manager and the Authority”.

In subsections (10) and (11), omit “insolvent”.

After the definition of “the 1992 Regulations” insert—

• ““the Authority” means the Financial Servcies Authority;

• “article 9 default” has the same meaning as in the Financial Services and Markets Act 2000 (Transitional Provisions, Savings and Repeals) (Financial Services Compensation Scheme) Order 2001;”.

After the definition of “building society” insert—

• ““commencement” means the beginning of the day on which section 19 of the Financial Services and Markets Act 2000 comes into force;”.

After the definition of “non-EEA institution” insert—

• ““relevant Part” means “Part II of the 1987 Act or Part IV of the 1986 Act (as continued in effect by the Financial Services and Markets Act 2000 (Transitional Provisions, Repeals and Savings) (Financial Services Compensation Scheme) Order 2001)”;

• “the scheme manager” has the same meaning as in Part XV of the Financial Services and Markets Act 2000;”.

For the words from the beginning to “the relevant Board”, substitute—

• “Where an article 9 default has occurred in relation to a person who was, immediately before commencement, an EEA institution which was participating in a UK scheme, and that institution fails to produce any documents or provide any information to the scheme manager which it is required to produce or provide under section 65 of the 1987 Act or, as the case may be, section 29A of the 1986 Act, the scheme manager”.

In sub-paragraph (b), for “the Board” substitute “the scheme manager”.

For the words from the beginning of the paragraph to “the relevant enactment” substitute “Where an article 9 default has occurred in relation to a person who was, immediately before commencement, a UK institution or building society which is participating in a host State scheme, section 62 of the 1987 Act or section 28 of the 1986 Act as the case may be,”.

For “relevant Board” substitute “scheme manager”.

For the words from “a UK institution” to “the relevant Board” substitute “an article 9 default occurs in relation to a person who was, immediately before commencement, a UK institution or building society which is participating in a host State scheme, the scheme manager”.

In paragraph (1), for the words from “a UK institution” to “relevant authority” substitute “an article 9 default has occurred in relation to a person who was, immediately before commencement, a UK institution or building society, it shall be the duty of the Authority”.

In paragraph (2), after “where” insert “a person who was, immediately before commencement,” and for “relevant authority” substitute “the Authority”.

In paragraph (3), for “relevant enactment” substitute “relevant Part”.

For the words from the beginning of the paragprah to “obtain information)” substitute “Where an article 9 default has occurred in relation to a person who was, immediately before commencement, a UK institution or building society which is participating in a host State scheme, the provisions of the relevant Part which enable the scheme manager to obtain information (sections 58(8), (9), 65(3), (4) of the 1987 Act or sections 29A(3) and (4) of the 1986 Act”.

For “relevant Board” substitute “scheme manager”.

For “relevant UK scheme” substitute “the deposit protection scheme or the investor protection scheme as appropriate”.