(This note is not part of the Regulations)

These Regulations are made under the Banking Act 2009 (c.1) ("the Act").

The Regulations specify provisions which must, or which may, be included in a third party compensation order made in accordance with section 59 of the Act in the case of a partial property transfer (as defined by section 47 of that Act) ("a third party compensation order in relation to a partial property transfer"). These Regulations relate in particular to the treatment of those who were creditors of a banking institution immediately before a partial property transfer took effect ("pre-transfer creditors").

Regulation 2 sets out the cases in which the Regulations apply.

Regulation 3 provides that a compensation scheme order or resolution fund order made in relation to the cases in which these Regulations apply must include provision for a third party compensation order. Such an order must comply with the provisions of these Regulations.

Regulation 4 provides that a third party compensation order in relation to a partial property transfer must provide for the appointment of an independent valuer to determine whether pre-transfer creditors should be paid compensation and if so, what amount is to be paid.