Financial Services and Markets Act 2000, section 109A

Scheme reports: ring-fencing transfer schemes

Part VII Control of Business Transfers

(1) An application under section 106B in respect of a ring-fencing transfer scheme must be accompanied by a report on the terms of the scheme (a “scheme report”).

(2)A scheme report may be made only by a person—

(a)appearing to the PRA to have the skills necessary to enable the person to make a proper report, and

(b)nominated or approved for the purpose by the PRA.

(3)A scheme report must be made in a form approved by the PRA.

(4)A scheme report must state—

(a)whether persons other than the transferor concerned are likely to be adversely affected by the scheme, and

(b)if so, whether the adverse effect is likely to be greater than is reasonably necessary in order to achieve whichever of the purposes mentioned in section 106B(3) is relevant.

(5)The PRA must consult the FCA before—

(a)nominating or approving a person under subsection (2)(b), or

(b)approving a form under subsection (3).F876]

Read section 109A in the full Act → Definitions (3) Cases (6)

Definitions used in section 109A

the PRA

“the PRA” means the Prudential Regulation Authority;

Defined in s.417(1) · see it in the full Act
the transferor concerned

(2) In this Part, “the transferor concerned”—

(a)in the case of an insurance business transfer scheme, is to be read in accordance with section 105(2);

(b)in the case of a banking business transfer scheme, is to be read in accordance with section 106(2);

(c)in the case of a reclaim fund business transfer scheme, means the reclaim fund to whose business the scheme relates.

(d)in the case of a ring-fencing transfer scheme, means the body to whose business the scheme relates.

Defined in s.103A(2) · see it in the full Act
the FCA

(2) The Financial Conduct Authority is in this Act referred to as “the FCA”.

Defined in s.1A(2) · see it in the full Act

“the FCA” means the Financial Conduct Authority;

Defined in s.417(1) · see it in the full Act

Cases considering section 109A (6)

Santander UK Plc v Abbey National Treasury Services Plc

[2019] EWHC 111 (Ch) · 25 January 2019

The court applied the requirement for a PRA-approved skilled person’s report and accepted that the report addressed adverse effects and whether they were greater than reasonably necessary. (see paras [33]-[35], [66]-[72])

Lloyds Bank Plc & Ors R(ring-fencing transfer scheme) (Rev 1)

[2018] EWHC 1034 (Ch) · 3 May 2018

Applied to assess the skilled person’s appointment, report and answer to the two-part statutory question concerning likely adverse effects and whether they were greater than reasonably necessary. (see paras [22], [31], [141], [158]-[167], [204])

Barclays Bank Plc And Woolwich Plan Managers Ltd, Re

[2018] EWHC 472 (Ch) · 9 March 2018Defines

Defines the twofold statutory question for the skilled person: whether persons other than the transferor are likely to be adversely affected and, if so, whether the effect is greater than reasonably necessary to achieve the statutory purpose (see paras [3], [52], [100]).

What each judgment says about section 109A is in the case-law panel in the full Act.

Amendments and notes

1 notes from legislation.gov.uk

Amendments

  1. F876S. 109A inserted (1.3.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 1 para. 8; S.I. 2014/377, art. 2(1)(a), Sch. Pt. 1