Banking Bill

With this it will be convenient to discuss the following: Government new clause 13— Special resolution regime: Continuity obligations: onward share transfers. New clause 8— Order of consideration of stabilisation options— ‘The stabilisation options in sections 11, 12, and 13 must be considered in the order set out above.’. New clause 9— Financial Services Compensation Scheme— ‘(1) The scheme manager must decide, once a stabilisation power has been exercised, how to achieve Objective 3 of the special resolution regime through— (a) the transfer of a relevant account to another financial institution, or (b) making a payment to relevant depositors. (2) Subsection (1)(a) takes precedence over subsection (1)(b). (3) Prior to making its decision the scheme manager must consult— (a) the Treasury, (b) the Bank of England, and (c) the FSA.’. New clause 10— Report on exercise of stabilisation powers— ‘(1) On the exercise of stabilisation powers, the Treasury must lay before Parliament a report setting out— (a) the reason for the exercise by the FSA of its powers under section 7, and (b) how the Treasury of the Bank of England then exercised their stabilisation powers to achieve the special resolution regime objectives. (2) Where the Treasury believes the disclosure of certain information in the report in subsection (1) would adversely affect achieving the special resolution regime objectives, that information may be withheld from publication for up to six months from the date on which the stabilisation powers were exercised, but must be published at the expiration of that period.’. No. 74, in clause 5, page 3, line 34, at end insert— ‘(aa) how the interests of creditors will be taken into account in the use of the options set out in subsection (1),’. No. 9, page 4, line 3, at end insert ‘, and (g) on the criteria by which the FSA will judge breach of threshold conditions.’. No. 8, in clause 7, page 4, line 27, leave out from ‘conditions’ to end of line 28 and insert ‘(within the meaning of paragraph 4 of Schedule 6 to the Financial Services and Markets Act 2000 (threshold conditions: adequate resources)).’. No. 12, page 4, line 32, at end insert— ‘(3A) Condition 3 is that the FSA has consulted— (a) the Bank of England to ensure that it will be able to exercise a stabilisation power under section 8, or (b) the Treasury to ensure that it will be able to exercise its powers under section 9.’. No. 10, in clause 12, page 6, line 36, leave out paragraph (a). No. 11, page 7, line 15, at end insert— ‘(6) The primary objective of a bridge bank shall be to facilitate the sale of a bank - in whole or in part - to one or more private sector purchasers, but if that is not feasible the bridge bank must be either— (a) wound up in a manner that meets the special resolution regime objectives and is in the interests of the remaining creditors, or (b) taken into temporary public ownership.’. Government amendments Nos. 27 to 37.