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Version date: 6 July 2016 - onwards
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26. Decisions causing a financial institution to fail: meaning of insolvency

(1) Section 37 of the Financial Services (Banking Reform) Act 2013 (interpretation of section 36) is amended as follows.

(2) In subsection (10) -

(a) after paragraph (c) insert -

“(ca) building society insolvency,

(cb) investment bank insolvency,”;

(b) after paragraph (e) insert -

“(ea) building society special administration,”.

(3) After subsection (10) insert -

“(11) For the purposes of subsection (10) -

“bank administration” has the same meaning as in the Banking Act 2009 (see section 136 of that Act);

“bank insolvency” has the same meaning as in that Act (see section 90 of that Act);

“building society insolvency” and “building society special administration” have the same meaning as in the Building Societies Act 1986 (see section 119 of that Act);

“investment bank insolvency” means any procedure established by regulations under section 233 of the Banking Act 2009.”

Comparing proposed amendment...