Schedule 9: Wholesale cash distribution Part 1 – New Part 5A of the Banking Act 2009 Miscellaneous Section 206Z6: Power to disapply regulation and enforcement provisions
This section permits HM Treasury by regulations to provide for any of sections 206K to 206Z4 not to apply, or to apply with modifications, in relation to recognised persons that are companies wholly owned by the Crown (see subsection (1)). For the purposes of this section, a company is wholly owned by the Crown if, and only if, every member of the company is a Minister of the Crown, government department or company wholly owned by the Crown, or a person acting on behalf of a Minister of the Crown, government department or company wholly owned by the Crown (see subsection (5)).
	Before making regulations under this section HM Treasury must consult the Bank.
	Subsection (4) makes provision about the procedure for regulations made under subsection (1).
	Section 206Z6 allows HM Treasury to, by regulations, provide for a company wholly owned by the Crown to be a person recognised as having market significance. Currently there is only one company that is both wholly owned by the Crown and operating in the wholesale cash distribution market. Existing oversight arrangements over this company are envisaged to be sufficient to safeguard against any risks that may arise should the company become systemic. HM Treasury intends for wholly Crown-owned entities to be within scope of market oversight designation only, but with a power for HM Treasury to disapply some or all of the powers under the regime for Crown-owned entities at the point of designation, if deemed appropriate.