Schedule 9: Wholesale cash distribution Part 1 – New Part 5A of the Banking Act 2009 Regulation Section 206M: Directions
This section gives the Bank power to give directions in writing to a recognised person (see subsection (1)). This may include requiring or prohibiting the taking of specified action in relation to the performance of a specified relevant function in relation to a specified wholesale cash distribution activity. It may also include setting standards to be met in the performance of a specified relevant function in relation to a specified wholesale cash distribution activity (see subsection (2)).
	Subsections (3) and (4) provide that if the Bank gives a direction to a recognised person for the purpose of resolving or reducing a threat to the stability of the UK financial system, the recognised person (including the recognised person’s officers and staff) has immunity from liability in damages in respect of action or inaction in accordance with the direction.
	Subsection (5) sets out that a direction given to a recognised person for the purpose of resolving or reducing a threat to the stability of the UK financial system must include a statement that it is given for that purpose and inform the recognised person of the effect of immunity from liability in damages in respect of action or inaction in accordance with the direction.
	Subsection (6) provides that HM Treasury may confer, by regulations, immunity on any person from liability in damages in respect of action or inaction taken by a person in accordance with the direction of the Bank, including a direction to a recognised person for the purpose of resolving or reducing a threat to the stability of the UK financial system. Subsection (7) sets out the procedure for making an order under subsection (6).
	Immunity from liability conferred under this section does not extend to action or inaction taken in bad faith or in contravention of section 6(1) of the Human Rights Act 1998.