Financial Services and Markets Act 2000, section 112A

Rights to terminate etc

Part VII Control of Business Transfers

(1)Subsection (2) applies where (apart from that subsection) a person would be entitled, in consequence of anything done or likely to be done by or under this Part in connection with an insurance business transfer scheme [F899 , a banking business transfer scheme or a ring-fencing transfer schemeF899] —

(a)to terminate, modify, acquire or claim an interest or right; or

(b)to treat an interest or right as terminated or modified.

(2)The entitlement—

(a)is not enforceable in relation to that interest or right until after an order has been made under section 112(1) in relation to the scheme; and

(b)is then enforceable in relation to that interest or right only insofar as the order contains provision to that effect.

(3)Nothing in subsection (1) or (2) is to be read as limiting the scope of section 112(1).F898]

Read section 112A in the full Act → Definitions (1) Cases (5)

Definitions used in section 112A

claim

“claim”, in relation to the Financial Services Compensation Scheme under Part XV, is to be construed in accordance with section 214(1B);

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

Cases considering section 112A (5)

Santander UK Plc v Abbey National Treasury Services Plc

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

The court applied the provision restricting enforcement of contractual termination, modification and related rights until after the relevant order, supporting the effectiveness of the scheme. (see paras [169]-[171])

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

[2018] EWHC 1034 (Ch) · 3 May 2018

Applied to regulate the enforceability of rights triggered by the Scheme and to preserve the exercise of specified Preserved Rights. (see paras [245], [249], [253])

Mercantile Indemnity Company Limited & Ors, Re

[2025] EWHC 3396 (Ch) · 23 December 2025

Section 112A was identified as further refining the court’s powers in relation to implementation of insurance business transfer schemes. (see para [94])

What each judgment says about section 112A is in the case-law panel in the full Act.

Amendments and notes

2 notes from legislation.gov.uk

Amendments

  1. F898S. 112A inserted (30.6.2008) by The Financial Services and Markets Act 2000 (Amendments to Part 7) Regulations 2008 (S.I. 2008/1468), reg. 2(3)
  2. F899Words in s. 112A(1) substituted (1.3.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 1 para. 12; S.I. 2014/377, art. 2(1)(a), Sch. Pt. 1