Citation and commencement

1. This Order may be cited as the Banking Act 2009 (Restriction of Partial Property Transfers) (Amendment) Order 2009 and shall come into force on the day after the day on which it is made.

Amendment

2.The Banking Act 2009 (Restriction of Partial Property Transfers) Order 2009( 2 ) is amended as follows.

3. In article 1(3)—

(a) after the definition of “the Bank” insert—

“ “Banking Consolidation Directive” means Directive 2006/48/ EC of the European Parliament and of the Council relating to the taking up and pursuit of the business of credit institutions ( 3 ) ; ” ;

(b) in paragraphs (c) and (d) of the definition of “excluded rights”—

(i) delete “solely”; and

(ii) after “instruments” insert “or an activity referred to in Annex I to the Banking Consolidation Directive”;

(c) at the end of paragraph (d) of the definition of “excluded rights” delete “or”;

(d) after paragraph (e) of the definition of “excluded rights” insert—

“ or

(e) in the definition of “financial instrument”—

(i) the words from “any instrument” to the end become paragraph (a);

(ii) for the words from “Directive” to “instruments” substitute “the Markets in Financial Instruments Directive”;

(iii) at the end insert—

“ (b) any option, future, swap, forward, contract for differences or other derivative contract not falling within paragraph (a); and

(c) any combination of any of the foregoing; ” ;

(f) after the definition of “financial instrument” insert—

“ “Markets in Financial Instruments Directive” means Directive 2004/39/EC of the European Parliament and of the Council on markets in financial instruments ( 4 ) ; ” ;

(g) in the definition of “relevant authority” substitute “(a)” and “(b)” for “(f)” and “(g)” respectively;

(h) in the definition of “relevant financial instrument”—

(i) substitute “(a)”, “(b)”, “(c)” and “(d)” for “(h)”, “(i)”, “(j)” and “(k)” respectively;

(ii) after “loan;” delete “or”;

(iii) at the end insert—

“ or

(i) in the definition of “retail deposit” substitute “(a)” and “(b)” for “(l)” and “(m)” respectively;

(j) after the definition of “title transfer financial collateral arrangements” insert—

“ ;

“transferable securities” has the meaning given by Article 4(18) of the Markets in Financial Instruments Directive ” .

4. In article 3(6) for the words from “shall” to “subordinated debt” in the second place where they occur substitute “and the references to transferable securities in paragraph (f) of the definition of “excluded rights” shall be treated as if they were respectively a reference to subordinated debt or transferable securities”.

5. In article 5—

(a) in paragraph (1) after “(2),” insert “(2A),”;

(b) after paragraph (2) insert—

“ (2A) A partial property transfer to which this Order applies may not transfer the benefit of the security unless the liability which is secured is also transferred. ” ;

(c) in paragraph (5) after “(2),” insert “(2A),”; and

(d) in paragraph (6) after “(2)” insert “, (2A)” in each place where it occurs.

6. After article 7 insert—

“ Trusts

7A. A partial property transfer to which this Order applies which makes provision under section 34(7)(a) of the Act may remove or alter the terms of the trust (howsoever arising) only to the extent necessary or expedient for the purpose of transferring from the banking institution to the transferee—

(a) the legal or beneficial interest of the banking institution in the property held on trust;

(b) any powers, rights or obligations of the banking institution in respect of the property held on trust. ”

7. In article 8(2)(c) after “a” insert “relevant”.