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Part 8U.K.General

257“Financial assistance”U.K.

(1)In this Act “financial assistance” includes giving guarantees or indemnities and any other kind of financial assistance (actual or contingent).

(2)The Treasury may by order provide that a specified activity or transaction, or class of activity or transaction, is to be or not to be treated as financial assistance for a specified purpose of this Act; and subsection (1) is subject to this subsection.

(3)An order—

(a)shall be made by statutory instrument, and

(b)shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Commencement Information

I1S. 257 in force at 17.2.2009 for specified purposes by S.I. 2009/296, arts. 2, 3, Sch. para. 12

I2S. 257 in force at 21.2.2009 in so far as not already in force by S.I. 2009/296, arts. 2, 3, Sch. para. 12

258“Enactment”U.K.

In this Act “enactment” includes—

(a)subordinate legislation,

(b)an Act of the Scottish Parliament and an instrument under an Act of the Scottish Parliament, and

(c)Northern Ireland legislation.

Commencement Information

I3S. 258 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 13

[F1258AInvestment firm”U.K.

(1)In this Act “investment firm” means a UK institution which is (or, but for the exercise of a stabilisation power, would be) an investment firm for the purposes of [F2Regulation (EU) No. 575/2013 of the European Parliament and of the Council [F3as it forms part of [F4assimilated] law].]

(2)But “investment firm” does not include—

(a)an institution which is also—

(i)a bank (within the meaning of Part 1),

(ii)a building society (within the meaning of section 119 of the Building Societies Act 1986), or

(iii)a credit union (within the meaning of section 31 of the Credit Unions Act 1979 or Article 2(2) of the Credit Unions (Northern Ireland) Order 1985), or

(b)an institution which is of a class or description specified in an order made by the Treasury.

(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)In subsection (1) “UK institution” means an institution which is incorporated in, or formed under the law of any part of, the United Kingdom.]

259Statutory instrumentsU.K.

(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)).

SectionTopicParliamentary scrutiny
PART 1–Special resolution regime
2Meaning of “bank”Draft affirmative resolution
[F52(2A) Criteria for determining what are critical functionsNegative resolution]
25Share transfer ordersNegative resolution
47Partial transfersDraft affirmative resolution
48Protection of interestsDraft affirmative resolution
[F648B(13A) Further provision connected with functions under section 48B(10)Draft affirmative resolution]
[F648B(16) Criteria for determining what are core business linesNegative resolution]
[F748F(1) and (2)] [F7Power to amend definition of “excluded liabilities”] [F7Draft affirmative resolution]
[F748G] [F7Insolvency treatment principles] [F7Draft affirmative resolution]
[F748P] [F7Safeguarding of certain financial arrangements] [F7Draft affirmative resolution]
[F752A] [F7Bail-in compensation orders] [F7Draft affirmative resolution]
55Independent valuerNegative resolution
56Independent valuer: moneyNegative resolution
60 [F8Third party compensation: partial property transfers]Draft affirmative resolution
[F760A] [F7Third party compensation: instruments containing special bail-in provision] [F7Draft affirmative resolution]
62Compensation ordersDraft affirmative resolution
69Continuity obligations: consideration and termsNegative resolution
F9. . .F9. . .F9. . .
74TaxDraft affirmative resolution (Commons only)
75Power to change lawDraft affirmative resolution (except for urgent cases)
78Public fundsNegative resolution (Commons only)
[F1081D] [F10Meaning of “banking group company”] [F10Draft affirmative resolution (except for urgent cases)]
[F1183ZY] [F11Enforcement of share transfer orders] [F11Negative resolution]
85Building societies: ordersNegative resolution
86Building societies: assets(As for orders under section 90B of the Building Societies Act 1986)
88Building societies: consequentialDraft affirmative resolution
89Credit unionsDraft affirmative resolution
F12. . .F12. . .F12. . .
[F1389JA(8) (modified section 48B(17B)) Criteria for determining what are core business linesNegative resolution]
PART 2–Bank insolvency
91Meaning of “bank”Draft affirmative resolution
122Application of insolvency lawDraft affirmative resolution
125Rules(Expansion of power in section 411 of the Insolvency Act 1986)
130Building societiesDraft affirmative resolution
131Credit unionsDraft affirmative resolution
132Partnerships(As for orders under section 420 of the Insolvency Act 1986)
133Scottish partnershipsNegative resolution
135Consequential provisionDraft affirmative resolution
PART 3–Bank administration
148Sharing informationNegative resolution
149Multiple original transfersDraft affirmative resolution
152Transfer from temporary public ownershipDraft affirmative resolution
[F14152A] [F14Property transfer from transferred institution] [F14Draft affirmative resolution]
156Application of other lawDraft affirmative resolution
158Building societiesDraft affirmative resolution
159Credit unionsDraft affirmative resolution
160Rules(Expansion of power in section 411 of the Insolvency Act 1986)
163Partnerships(As for orders under section 420 of the Insolvency Act 1986)
164Scottish partnershipsNegative resolution
168Consequential provisionDraft affirmative resolution
PART 4–Financial Services Compensation Scheme
170Contingency fundingDraft affirmative resolution
F15. . .F15. . .F15. . .
173Borrowing from National Loans FundNegative resolution
PART 5–F16... payment systems
[F17182(5C)Meaning of “digital settlement asset” and “DSA service provider Draft affirmative resolution]
191Bank of England directions: immunityNegative resolution
203Fees regulationsNegative resolution
204InformationNegative resolution
[F18206AServices forming part of recognised F19... payment systemsDraft affirmative resolution]
[F20PART 5A - Wholesale cash distribution
206MBank of England directions: immunityNegative resolution
206ZFees regulationsNegative resolution
206Z4InformationNegative resolution
206Z6Power to disapply regulation and enforcement provisionsDraft affirmative resolution]
PART 6–Banknotes: Scotland and Northern Ireland
[F21214A Issuers of banknotes: Scotland and Northern IrelandDraft affirmative resolution]
215Banknote regulationsDraft affirmative resolution
PART 7–Miscellaneous
230Financial institutionNegative resolution
[F22232(6)]Investment banks: definitionDraft affirmative resolution
[F23232(7)Investment banks: definition of investment activityNegative resolution]
233Investment banks: insolvencyDraft affirmative resolution
249[F24PRA or FCA—] functionsDraft affirmative resolution
251Central banks: assistance to building societiesDraft affirmative resolution
255Financial collateral arrangements [F25Draft affirmative resolution]
PART 8–General
257Financial assistanceNegative resolution
[F26258A] [F26Meaning of “investment firm”] [F26Draft affirmative resolution (except for urgent cases)]
262Repeal of Banking (Special Provisions) Act 2008None
263CommencementNone

(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),

[F27(da)section 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),

[F28(ka)section 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), F29...

F29(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).

Textual Amendments

F9Words 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)

F10Words 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

F15Words 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)

F16Word 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)

F18Words 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)

F19Word 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)

F22Word 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.

F23Words 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.

F24Words 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.

F25Words in s. 259(3) Table substituted (29.4.2021) by Financial Services Act 2021 (c. 22), ss. 41(6), 49(1)(c)

F26Words 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

F29S. 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 Information

I4S. 259 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 14

260MoneyU.K.

Expenditure of the Treasury under, by virtue of or in connection with a provision of this Act shall be paid out of money provided by Parliament.

Commencement Information

I5S. 260 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 15

261Index of defined termsU.K.

The Table sets out expressions defined in this Act for general purposes.

ExpressionSection
Action93 and 166
[F30Additional Tier 1 instruments (in Part 1) 3]
[F31Bail-in compensation order 49]
[F32bail in liabilities 3]
Bank (Part 1)2
Bank (Part 2)91
Bank administration136
Bank administration order141
Bank insolvency90
Bank insolvency order94
[F33Bank of England 256B]
[F34Banking group company 81D]
Bridge bank12
Bridge bank reverse share transfer instrument31
Bridge bank share transfer instrument30
[F35Bridge bank supplemental property transfer instrument 44D
Bridge bank supplemental reverse property transfer instrument44E]
[F30the capital requirements regulation (in Part 1) 3]
F36. . . F36. . .
[F37Client assets (Part 1) 3]
[F30Common Equity Tier 1 instruments (in Part 1) 3]
Compensation scheme order49
The court (Part 2)92
The court (Part 3)166
[F30critical functions (in Part 1) 3]
Eligible depositors93
[F30eligible liabilities 3]
Enactment258
[F30extraordinary public financial support (in Part 1) 3]
[F38FCA 3, 93, 166 [F39, 183 & 206F]]
F40. . .F40. . .
[F41FSCS (in Part 1) 3
FSCS (in Part 2)93]
Fair93
Financial assistance257
Financial institution230
Full payment resolution100
Independent valuer54
F42. . .F42. . .
[F43Investment firm 258A]
Liquidation committee100
[F30mandatory reduction instrument 6B]
[F44Normal insolvency proceedings (in Part 1) 3]
Objective 1 Achievement Notice139
Onward bridge bank12
Onward property transfer instrument43
[F35Onward share transfer instrument26ZA]
Onward share transfer order28
[F30own funds (in Part 1) 3
own funds requirements (in Part 1) 3]
Partial property transfer47
[F45Payment system 182]
[F46Payment Systems Regulator 183 [F47& 206F]]
F48. . .F48. . .
[F49PRA 3, 93, 166 [F50, 183 & 206F]]
[F51Private sector reverse property transfer instrument 42A]
Property transfer instrument33
Property transfer order45
[F33Prudential Regulation Authority 256B]
F52. . .F52. . .
[F30the recovery and resolution directive (in Part 1) 3
relevant capital instruments (in Part 1) 3
[F32relevant internal liabilities 3]
resolution company 29A]
[F32resolution entity 3]
Resolution fund order49
[F32resolution group 3]
[F31Resolution instrument 12A]
Reverse property transfer instrument44
Reverse property transfer order46
F53[F54... reverse share transfer instrument 26A]
Reverse share transfer order29
Securities14
Share transfer instrument15
Share transfer order16
[F31Special bail-in provision 48B]
Special resolution regime1
Special resolution objectives4
Stabilisation options1
Stabilisation powers1
Supplemental property transfer instrument42
Supplemental share transfer instrument or order26 & 27
[F30third-country instrument 89I]
Third party compensation order49 & 59
[F30Tier 2 instruments (in Part 1) 3]
Unable to pay debts93 & 166
F55. . . F55. . .

Textual Amendments

F34Words in s. 261 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(7), 122(3) (with Sch. 20); S.I. 2014/1447, art. 2(c); S.I. 2014/1847, art. 2

F37Words in s. 261 inserted (1.1.2015) by Financial Services Act 2012 (c. 21), ss. 96(6), 122(3) (with Sch. 20); S.I. 2014/3323, art. 2

F40Words in s. 261 omitted (1.4.2013) by virtue of Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 62(b) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F42Words in s. 261 omitted (27.6.2017) by virtue of Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 30(a)

F43Words in s. 261 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(9), 122(3) (with Sch. 20); S.I. 2014/1447, art. 2(f); S.I. 2014/1847, art. 2

F45Words in s. 261 inserted (27.6.2017) by Digital Economy Act 2017 (c. 30), s. 118(2), Sch. 9 para. 30(b)

F51Words in s. 261 inserted (1.4.2013) by Financial Services Act 2012 (c. 21), ss. 97(11), 122(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.

F53Words in s. 261 omitted (16.12.2016) by virtue of The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 27(b)(i)

Commencement Information

I6S. 261 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 16

262RepealU.K.

(1)The Treasury may by order repeal the Banking (Special Provisions) Act 2008.

(2)An order—

(a)may include savings, and

(b)shall be made by statutory instrument.

(3)Subsection (2)(a) is without prejudice to the generality of, or the application to this section of, section 259.

Commencement Information

I7S. 262 in force at 17.2.2009 for specified purposes by S.I. 2009/296, arts. 2, 3, Sch. para. 17

I8S. 262 in force at 21.2.2009 in so far as not already in force by S.I. 2009/296, arts. 2, 3, Sch. para. 17

263CommencementU.K.

(1)The preceding provisions of this Act shall come into force in accordance with provision made by the Treasury by order.

(2)Subsection (1) does not apply to section 254, which comes into force at the end of the period of 2 months beginning with the date of Royal Assent.

(3)An order under subsection (1)—

(a)may make provision generally or only in relation to specific provisions or purposes,

(b)may make different provision for different provisions or purposes,

(c)may include incidental or transitional provision (including savings), and

(d)shall be made by statutory instrument.

(4)Where the Treasury or another authority are required to consult or take other action before exercising a power or fulfilling a duty to make legislation or to do any other thing under, by virtue of or in connection with this Act, the Treasury or other authority may rely on consultation or other action carried out before the commencement of the relevant provision of this Act.

264ExtentU.K.

(1)This Act extends to—

(a)England and Wales,

(b)Scotland, and

(c)Northern Ireland.

(2)But—

(a)sections 253 and 254 extend to Scotland only, and

(b)an amendment of an enactment has the same extent as the enactment (or the relevant part).

265Short titleU.K.

This Act may be cited as the Banking Act 2009.

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