Banking Act 2009
2009 c. 1 · Enacted 12 February 2009 · Extends to United Kingdom
An Act to make provision about banking.
[12th February 2009]
Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—C1
Annotations to the whole text
Modifications
- C1
Act: power to apply (with modifications) conferred (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 11 para. 165; S.I. 2023/779, reg. 4(ddd)(xiv)
Contents
- Part 1: Special Resolution Regime
- Chapter 1: Introduction
- 1Overview
- 2Interpretation: “bank”
- 3Interpretation: other expressions
- Chapter 2: Pre-resolution powers of the Bank of England
- 3ARemoval of impediments to the exercise of stabilisation powers etc
- 3BSafeguards relating to directions under section 3A
- Chapter 3: Special resolution action
- Objectives and code
- 4Special resolution objectives
- 5Code of practice
- 6Code of practice: procedure
- Mandatory write-down, conversion etc of capital instruments
- 6ACases where mandatory write-down, conversion, etc applies
- 6BMandatory write-down, conversion, etc of capital instruments and liabilities
- 6CMandatory reduction instruments: implementation of requirements of section 6B
- 6DMandatory reduction instruments: supplementary matters
- Valuation before mandatory write-down of capital or stabilisation action
- 6EPre-resolution valuation
- Exercise of powers: general
- 7General conditions
- 7AEffect on other group members, financial stability in UK etc
- 8Specific Condition: private sector purchaser, bridge bank or asset management vehicle
- 8ZASpecific conditions: asset management vehicle
- 8ASpecific condition: bail-in Repealed
- 9Specific conditions: temporary public ownership
- 10Banking Liaison Panel
- The stabilisation options
- 11Private sector purchaser
- 11APrivate sector purchaser: marketing
- 12Bridge bank
- 12ZAAsset management vehicle
- 12ABail-in option
- 12AABail-in: sequence of write-down and conversion of capital instruments and liabilities
- 12BBail-in administrators Repealed
- 13Temporary public ownership
- Transfer of securities
- 14Interpretation: “securities”
- 15Share transfer instrument
- 16Share transfer order
- 17Effect
- 18Continuity
- 19Conversion and delisting
- 20Directors and senior managers
- 21Ancillary instruments: production, registration, &c.
- 22Termination rights, &c. Repealed
- 23Incidental provision
- 24Procedure: instruments
- 25Procedure: orders
- 26Supplemental instruments
- 26ZAOnward share transfer instruments
- 26A... reverse share transfer instruments
- 27Supplemental orders
- 28Onward transfer
- 29Reverse share transfer orders
- 29AInterpretation: “resolution company”
- 30Resolution company: share transfers
- 31Resolution company: reverse share transfer
- 32Interpretation: general
- Transfer of property
- 33Property transfer instrument
- 34Effect
- 35Transferable property
- 36Continuity
- 36ADirectors and senior managers
- 37Licences
- 38Termination rights, &c. Repealed
- 39Foreign property
- 39ABanks which are recognised central counterparties
- 39BProperty transfer instrument: delisting
- 40Incidental provision
- 41Procedure
- 41ATransfer of property subsequent to resolution instrument
- 42Supplemental instruments
- 42APrivate sector purchaser: reverse property transfer
- 43Onward transfer
- 44Resolution company: reverse property transfer
- 44ABail in: reverse property transfer
- 44BProperty transfer instruments: special bail-in provision
- 44BAProperty transfer instruments and special bail-in provision: supplementary matters
- 44CReport on special bail-in provision
- 44DBridge bank: supplemental property transfer powers
- 44EBridge bank: supplemental reverse property transfer powers
- 45Temporary public ownership: property transfer
- 46Temporary public ownership: reverse property transfer
- 47Restriction of partial transfers
- 48Power to protect certain interests
- 48ACreation of liabilities
- Bail-in option
- 48BSpecial bail-in provision
- 48CMeaning of “protected deposit”
- 48DGeneral interpretation of section 48B
- 48EReport on special bail-in provision
- 48FPower to amend definition of “excluded liabilities”
- 48GPriority between creditors
- 48HBusiness reorganisation plans
- 48IBail-in administrator: further functions Repealed
- 48JBail-in administrator: supplementary Repealed
- 48KBail-in administrator: money Repealed
- 48LPowers in relation to securities
- 48MTermination rights, etc Repealed
- 48NDirectors and senior managers
- 48ODirections in or under resolution instrument
- 48POrders for safeguarding certain financial arrangements
- 48QContinuity
- 48RExecution and registration of instruments etc
- 48SResolution instruments: general matters
- 48TProcedure
- 48USupplemental resolution instruments
- 48VOnward transfer
- 48WReverse transfer
- 48WABail-in option: recovery of expenses
- Replacement of provisional valuation
- 48XReplacement of Bank’s provisional valuation
- 48YConsequences of a replacement valuation
- Termination rights etc
- 48ZTermination rights etc
- Compensation
- 49Orders
- 50Sale to private sector purchaser
- 51Transfer to temporary public ownership
- 52Transfer to resolution company
- 52ABail-in option
- 53Onward and reverse transfers etc
- 54Independent valuer: compensation scheme order or bail-in compensation order
- 55Independent valuer: supplemental
- 56Independent valuer: money
- 57Valuation principles
- 58Resolution fund
- 59Third party compensation: discretionary provision
- 60Third party compensation: mandatory provision
- 60AFurther mandatory provision: bail-in provision
- 60BPrinciple of no less favourable treatment
- 61Sources of compensation
- 62Procedure
- Independent valuer: valuation under section 6E or 48X
- 62AIndependent valuer: sections 6E and 48X
- Resolution administrator
- 62BResolution administrator
- 62CResolution administrator: further functions
- 62DResolution administrator: supplementary
- 62EResolution administrator: money
- Incidental functions
- 63General continuity obligation: property transfers
- 64Special continuity obligations: property transfers
- 65Continuity obligations: onward property transfers
- 66General continuity obligation: share transfers
- 67Special continuity obligations: share transfers
- 68Continuity obligations: onward share transfers
- 69Continuity obligations: consideration and terms
- 70Continuity obligations: termination
- 70ASuspension of obligations
- 70BRestriction of security interests
- 70CSuspension of termination rights
- 70DSuspension: general provisions
- 71Pensions
- 72Enforcement Repealed
- 73Disputes
- 74Tax
- 75Power to change law
- Treasury
- 76International obligation notice: general
- 77International obligation notice: resolution company
- 78Public funds: general
- 78APre-conditions for financial assistance: duty of Bank to give information
- 79Public funds: resolution company
- 79APrivate sector purchaser: report
- 80Resolution company: report
- 80ATransfer for bail-in purposes: report
- 81Temporary public ownership: report
- 81AAccounting information to be included in reports under sections 80, 80A(2)(b) and 81
- Groups
- 81AACases where mandatory write-down, conversion etc applies: banking group companies
- 81BSale to commercial purchaser and transfer to bridge bank
- 81ZZBASale to commercial purchaser and transfer to bridge bank: supplemental powers in relation to certain holding companies
- 81ZZBBAssessment of conditions for section 81ZZBA
- 81ZBATransfer to asset management vehicle
- 81ZBBTransfer to asset management vehicle: supplemental powers in relation to certain holding companies
- 81ZBCAssessment of conditions for section 81ZBB
- 81BABail-in option
- 81BBBail-in option: supplemental powers in relation to certain holding companies
- 81BCAssessment of conditions for section 81BB
- 81CSections 81AA to 81ZBB: supplemental
- 81CASection 81BA and Section 81BB: supplemental
- 81DInterpretation: “banking group company” &c.
- 82Temporary public ownership
- 83Supplemental
- Chapter 4: Information, investigation and enforcement
- Powers to gather information
- 83ZAInformation
- 83ZBReports by skilled persons
- Appointment of investigators
- 83ZCAppointment of persons to carry out general investigations
- 83ZDAppointment of person to carry out investigations in particular cases
- 83ZEInvestigations etc in support of foreign resolution authorities
- Conduct of investigations
- 83ZFInvestigations: general
- 83ZGPowers of persons appointed under section 83ZC
- 83ZHPowers of persons appointed as a result of section 83ZD
- 83ZIAdmissibility of statements made to investigators
- Information and documents: supplemental provision
- 83ZJInformation and documents: supplemental provision
- 83ZKProtected items
- 83ZLEntry of premises under warrant
- 83ZMRetention of documents obtained under section 83ZL
- 83ZNOffences etc
- 83ZOProsecution of offences under section 83ZN
- 83ZPOffences under section 83ZN by bodies corporate etc
- Enforcement of relevant requirements
- 83ZQInjunctions: prevent failure to comply with relevant requirement
- 83ZRRegulatory sanctions
- 83ZSDetermination of sanctions
- 83ZTProcedure: warning notice
- 83ZUProcedure: decision notice
- 83ZVProcedure: general
- 83ZWAppeal
- 83ZXInjunctions: failure to comply with certain section 83ZR sanctions
- 83ZYPublication
- 83ZZCo-operation
- 83Z1Delegation of enforcement functions
- Enforcement of share transfer orders
- 83Z2Enforcement: share transfer orders
- Chapter 5: Special cases
- Banks not regulated by PRA
- 83AModifications of Part
- Building societies, &c.
- 84Application of Part 1: general
- 84ZABridge bank: share transfer instruments
- 84ABail-in option: building societies
- 84BFurther provision: conversion of building society into company
- 84CFurther provision: transfer of business of building society to company
- 84DTransfer to a bridge bank or Bail-in option: modifications of this Act and other legislation
- 85Temporary public ownership
- 86Distribution of assets on dissolution or winding up
- 87Interpretation
- 88Consequential provision
- 89Credit unions
- Investment firms
- 89AApplication to investment firms
- ...
- 89BApplication to recognised central counterparties Repealed
- 89CRecognised central counterparty rules Repealed
- 89DRecognised central counterparty membership Repealed
- 89ERecognition of transferee company Repealed
- 89FRecognised central counterparty compensation orders Repealed
- 89GInterpretation: “recognised central counterparty” &c. Repealed
- Chapter 6: Third-country resolution actions
- Third-country resolution actions
- 89HRecognition of third-country resolution actions
- 89IEffect of recognition of third-country resolution action by Bank of England
- 89JThird-country instruments: supplementary provision
- Chapter 6A: RESOLUTION OF UK BRANCHES OF THIRD-COUNTRY INSTITUTIONS
- 89JAResolution of UK branches of third-country institutions
- Chapter 7: General provisions
- 89KInsolvency Proceedings
- 89LRestrictions on disclosure of confidential information
- 89MGiving of notices, documents etc under Part 1
- Part 2: Bank Insolvency
- Introduction
- 90Overview
- 91Interpretation: “bank”
- 92Interpretation: “the court”
- 93Interpretation: other expressions
- Bank insolvency order
- 94The order
- 95Application
- 96Grounds for applying
- 97Grounds for making
- 98Commencement
- Process of bank liquidation
- 99Objectives
- 100Liquidation committee
- 101Liquidation committee: supplemental
- 102Objective 1: (a) or (b)?
- 103General powers, duties and effect
- 104Additional general powers
- 105Status of bank liquidator
- Tenure of bank liquidator
- 106Term of appointment
- 107Resignation
- 108Removal by court
- 109Removal by creditors
- 110Disqualification
- 111Release
- 112Replacement
- Termination of process, &c.
- 113Company voluntary arrangement
- 114Administration
- 115Dissolution
- 116Dissolution: supplemental
- Other processes
- 117Bank insolvency as alternative order
- 118Voluntary winding-up
- 119Exclusion of other procedures
- 120Notice to PRA of preliminary steps
- 120ANotice to the regulators and the Bank of England of preliminary steps
- 121Disqualification of directors
- 122Application of insolvency law
- Miscellaneous
- 123Role of FSCS
- 124Transfer of accounts
- 125Rules
- 126Fees
- 127Insolvency Services Account
- 128Evidence
- 129Co-operation between courts
- 129ABanks not regulated by PRA
- 130Building societies
- 131Credit unions
- 132Partnerships
- 133Scottish partnerships
- 134Northern Ireland
- 135Consequential provision
- Part 3: Bank Administration
- Introduction
- 136Overview
- 137Objectives
- 138Objective 1: supporting private sector purchaser or resolution company
- 139Objective 1: duration
- 140Objective 2: “normal” administration
- Process
- 141Bank administration order
- 142Application
- 143Grounds for applying
- 144Grounds for making
- 145General powers, duties and effect
- 145APower to direct bank administrator Repealed
- 146Status of bank administrator
- 147Administrator's proposals
- 148Sharing information
- Multiple transfers
- 149General application of this Part
- 150Resolution company to private purchaser
- 151Property transfer from resolution company
- 152Property transfer from temporary public ownership
- 152AProperty transfer from transferred institution
- Termination
- 153Successful rescue
- 154Winding-up or voluntary arrangement
- Miscellaneous
- 155Disqualification of directors
- 156Application of other law
- 157Other processes
- 157ABanks not regulated by PRA
- 158Building societies
- 159Credit unions
- 159AApplication to investment firms
- 160Rules
- 161Fees
- 162Evidence
- 163Partnerships
- 164Scottish partnerships
- 165Co-operation between courts
- 166Interpretation: general
- 167Northern Ireland
- 168Consequential provision
- Part 4: Financial Services Compensation Scheme
- 169Overview
- 170Contingency funding Not yet in force
- 171Special resolution regime Repealed
- 172Investing in National Loans Fund Not yet in force
- 173Borrowing from National Loans Fund
- 174Procedure for claims
- 175Rights in insolvency
- 176Information
- 177Payments in error
- 178Regulations
- 179Delegation of functions
- 180Functions under this Act
- Part 5: ... Payment Systems and service providers
- Introduction
- 181Overview
- 182Interpretation: ... key terms
- 183Interpretation: other expressions
- Recognised systems and service providers
- 184Recognition order : payment system
- 184ARecognition order: DSA service provider
- 185Recognition criteria : payment system
- 185ARecognition criteria: DSA service provider
- 186Procedure
- 186AAmendment of recognition order
- 187De-recognition
- Regulation
- 188Principles
- 189Codes of practice
- 190System rules
- 190AService provider rules
- 191Directions
- 192Role of FCA and PRA
- 192APower of Bank to require FCA to refrain from specified action
- Enforcement
- 193Inspection
- 194Inspection: warrant
- 195Independent report
- 196Compliance failure
- 197Publication
- 198Penalty
- 199Closure
- 200Management disqualification
- 201Warning
- 202Appeal
- 202AInjunctions
- Miscellaneous
- 203Fees
- 203ARecords
- 203BAnnual report
- 203CPolicy statement
- 204Information
- 205Pretending to be recognised
- 206Saving for informal oversight
- 206AService providers
- 206AAService providers connected with a recognised payment system that uses digital settlement assets
- 206BInternational obligations
- Part 5A: Wholesale cash distribution
- Introduction
- 206COverview and purpose
- 206DPolicy statement
- 206EInterpretation: “wholesale cash distribution”
- 206FInterpretation: other terms
- Recognised persons
- 206GWholesale cash oversight orders
- 206H“Market significance” and “systemic significance”
- 206IProcedure
- 206JAmendment or revocation of a wholesale cash oversight order
- Regulation
- 206KPrinciples
- 206LCodes of practice
- 206MDirections
- 206NRole of the FCA, PRA and Payment Systems Regulator
- Enforcement
- 206OInspection
- 206PInspection: warrant
- 206QIndependent report
- 206RCompliance failure
- 206SPublication
- 206TPenalty
- 206UClosure
- 206VManagement disqualification
- 206WWarning
- 206XAppeal
- 206YInjunctions
- Miscellaneous
- 206ZFees
- 206Z1Records
- 206Z2Annual report
- 206Z3Requirement to provide information
- 206Z4Disclosure of information
- 206Z5Saving for informal oversight
- Companies wholly owned by the Crown
- 206Z6Power to disapply regulation and enforcement provisions
- Part 6: Banknotes: Scotland and Northern Ireland
- Introduction
- 207Overview
- Key terms
- 208“Banknote”
- 209“Issue”
- 210“Authorised bank”
- 211“Commencement”
- Authorisation to issue
- 212Repeal of old authorising enactments
- 213Authorisation to issue banknotes
- 214Consequential repeals and amendments
- 214APower to designate banks as “authorised banks”
- Regulations and rules
- 215Banknote regulations
- 216Banknote rules
- Specific issues
- 217Backing assets
- 218Information
- 219Ceasing the business of issuing notes
- 220Insolvency, &c.
- Enforcement
- 221Offence: unlawful issue
- 222Financial penalty
- 223Termination of right to issue
- 224Application to court
- Bank of England
- 225Organisation
- 226Discretionary functions
- 227Exemption
- Part 7: Miscellaneous
- Treasury support for banks
- 228Consolidated Fund
- 229National Loans Fund
- 230“Financial institution”
- 231Reports
- Investment banks
- 232Definition
- 233Insolvency regulations
- 234Regulations: details
- 235Regulations: procedure
- 236Review
- Banking (Special Provisions) Act 2008
- 237Compensation: valuer
- Bank of England
- 238UK financial stability
- 239Number of directors
- 240Meetings
- 241Chair of court
- 242Quorum
- 243Tenure
- 244Immunity
- 245Weekly return
- 246Information
- 247Bank of England Act 1946
- Financial Services Authority
- 248Variation of permission Repealed
- 249Functions
- 250Information
- Central banks
- 251Financial assistance to building societies
- 252Registration of charges
- 253Registration of charges: Scotland
- Funds attached rule (Scotland)
- 254Abolition for cheques
- Financial collateral arrangements
- 255Regulations
- 256Supplemental Repealed
- ...
- 256AState aid Repealed
- 256BBank of England” and “Prudential Regulation Authority”
- Part 8: General
- 257“Financial assistance”
- 258“Enactment”
- 258AInvestment firm”
- 259Statutory instruments
- 260Money
- 261Index of defined terms
- 262Repeal
- 263Commencement
- 264Extent
- 265Short title