Citation and commencement

1. This Order may be cited as the Financial Services (Banking Reform) Act 2013 (Commencement (No. 8) and Consequential Provisions) Order 2015, and comes into force on 26th March 2015.

Appointed day for the coming into force of paragraph 4 of Schedule 9

2. 26th March 2015 is the day appointed for the coming into force of paragraph 4 of Schedule 9 to the Financial Services (Banking Reform) Act 2013(building societies: ability to create floating charges).

Consequential amendments of the Building Societies (Financial Assistance) Order 2010

3.The Building Societies (Financial Assistance) Order 2010( 2 ) is amended as follows—

(a) omit article 7 (floating charges); and

(b) in article 11 (application of other companies insolvency legislation to building societies)—

(i) in paragraph (5) for “12, 13, 18 and 20” substitute “12 and 13”; and

(ii) in paragraph (8) for “34, 35, 40 and 42” substitute “34 and 35”.

Floating charges (Scotland): application of Part 18 of the Companies Act 1985

4. Chapters 1 and 3 of Part 18 of the Companies Act 1985( 3 ) (floating charges: Scotland) apply to a building society as they apply to an incorporated company (whether a company within the meaning of that Act or not), but with the modifications set out in Schedule 1.

Floating charges (Scotland): application of the Bankruptcy and Diligence etc. (Scotland) Act 2007

5. —(1) On the day on which section 46 (repeals, savings and transitional arrangements) of the Bankruptcy and Diligence etc. (Scotland) Act 2007( 4 ) (“the 2007 Act”) comes into force—

(a) article 4 of, and Schedule 1 to, this Order cease to have effect to the same extent as Chapters 1 and 3 of Part 18 of the Companies Act 1985 cease to have effect by virtue of section 46 of the 2007 Act; and

(b) paragraph (2) has effect.

(2) Part 2 of the 2007 Act( 5 ) applies to a building society as it applies to an incorporated company, but—

(a) with the modifications set out in Schedule 2; and

(b) in consequence of those modifications, without the modifications in regulation 5 of the Financial Markets and Insolvency (Settlement Finality and Financial Collateral Arrangements) (Amendment) Regulations 2010( 6 ) (registration of charges: Scotland).

Article 4

SCHEDULE 1 Modifications of Part 18 of the Companies Act 1985

1. The modifications of Chapters 1 and 3 of Part 18 of the Companies Act 1985 referred to in article 4 are as follows.

2. References to a company or incorporated company include a reference to a building society.

3. Section 462( 7 ) (power of incorporated company to create floating charge) has effect as if in subsection (5)—

(a) the reference to the Companies Act 1985 were a reference to such provisions of that Act as apply (by virtue of this Order) to a building society; and

(b) the words “and Part III of the Insolvency Act 1986” were omitted.

4. Section 463( 8 ) (effect of floating charge on winding up) has effect as if—

(a) in subsection (1) for the words “section 247(2) of the Insolvency Act 1986” there were substituted “subsection (1A)”;

(b) after subsection (1) there were inserted—

“ (1A) For the purposes of this Chapter a building society goes into liquidation if—

(a) it goes into liquidation within the meaning of section 247(2) of the Insolvency Act 1986 ( 9 ) ; or

(b) the court makes a building society insolvency order in relation to it under section 94 of the Banking Act 2009 ( 10 ) (as applied by section 90C of the Building Societies Act 1986 ( 11 ) ) at a time when it has not already gone into liquidation by passing a special resolution for voluntary winding up under section 88 of the Building Societies Act 1986 ( 12 ) . ” ; and

(c) in subsection (3) the words from “derogates” to “or” were omitted.

5. Section 464( 13 ) (ranking of floating charges) has effect as if—

(a) for paragraphs (b) and (c) of subsection (4) there were substituted—

“ (b) one floating charge has priority of ranking over another if it was created first. ” ;

(b) subsection (5), and the reference to that subsection in subsection (3), were omitted; and

(c) in subsection (6) the words “Part XII and to” were omitted.

6. Section 466( 14 ) (alteration of floating charges) has effect as if—

(a) subsections (4) to (4F)( 15 ) were omitted; and

(b) in subsection (6) the words “subsection (4) of” were omitted.

7. Section 486( 16 ) (interpretation for Part 18 generally) has effect as if in subsection (1)—

(a) in the definition of “ancillary document” paragraph (a) were omitted; and

(b) the definition of “company” were omitted.

Article 5(2)

SCHEDULE 2 Modifications of Part 2 of the Bankruptcy and Diligence etc. (Scotland) Act 2007

1. The modifications of Part 2 of the Bankruptcy and Diligence etc. (Scotland) Act 2007 referred to in article 5(2) are as follows.

2. References to a company include a reference to a building society.

3. Section 38 (creation of floating charges) has effect as if for subsections (3) and (3A) there were substituted—

“ (3) A floating charge is created only when the document granting the floating charge is executed by the building society granting the charge. ” .

4. Section 39 (advance notice of floating charges) does not apply to building societies.

5. Section 41 (ranking clauses) has effect as if subsection (5) were omitted.

6. Section 42 (assignation of floating charges) has effect as if—

(a) in subsection (1) the words “the registration in the Register of Floating Charges of” were omitted; and

(b) subsection (4) were omitted.

7. Section 43 (alteration of floating charges) has effect as if subsections (3)(b) and (4A) were omitted.

8. Section 44 (discharge of floating charges) has effect as if—

(a) in subsection (1) the words “the registration in the Register of Floating Charges of” were omitted; and

(b) subsection (4) were omitted.

9. Section 45 (effect of floating charges on winding up) has effect as if—

(a) subsections (2), (6)(a) and (8) were omitted; and

(b) for subsection (7) there were substituted—

“ (7) For the purposes of this section a building society goes into liquidation if—

(a) it goes into liquidation within the meaning of section 247(2) of the Insolvency Act 1986; or

(b) the court makes a building society insolvency order in relation to it under section 94 of the Banking Act 2009(as applied by section 90C of the Building Societies Act 1986) at a time when it has not already gone into liquidation by passing a special resolution for voluntary winding up under section 88 of the Building Societies Act 1986). ” .

10. Section 47 (interpretation) has effect as if the definition of “company” were omitted.