Part VII Transfer of Banking Business

Published by a ÑÇÖÞÉ«ÇéÍø Financial Services expert
Practice notes

Part VII Transfer of Banking Business

Published by a ÑÇÖÞÉ«ÇéÍø Financial Services expert

Practice notes
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Background

As noted in PrACTice Note: Insurance business transfer schemes, a regime for transferring portfolios of insurance business has existed in the UK since the enactment of the Insurance Companies Act 1982 (ICA 1982). Insurance business transfer schemes are now governed by Part VII of the Financial Services and Markets Act 2000 (FSMA 2000), which came into force in December 2001.

Since the introduction of FSMA 2000, Pt VII, banking businesses in the UK have also been capable of being transferred by court order. A banking business transfer scheme under FSMA 2000, Pt VII provides a process by which a bank may transfer the whole or part of its business, subject to compliance with prescribed conditions, without obtaining the consent of individual customers.

Transactions qualifying as a Part VII banking business transfer

Proposed transfers of banking business only fall within the scope of FSMA 2000, Pt VII (a Part VII banking business transfer) if the whole or part of the business to be transferred includes the regulated business of accepting deposits and one of the following

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Jurisdiction(s):
United Kingdom
Key definition:
PRA definition
What does PRA mean?

The Prudential Regulation authority (PRA) is responsible for the prudential regulation and supervision of 1,500 banks, building societies, credit unions, insurers and major investment firms in the UK.

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