Summary and Overview of the Structure Part 7: Miscellaneous
20.Sections 228 to 231 make provision in relation to the giving of financial assistance to banks and other financial institutions.
21.Sections 232 to 236 allow the Government to introduce if needed, via secondary legislation, a new insolvency regime for investment banks. Any such regulations will be subject to a review within a period of two years after coming into force and will be designed to secure the expeditious return of client assets following the failure of an investment banking institution.
22.Section 237 clarifies the interpretation of delegated powers in the Banking (Special Provisions) Act 2008 in regard to powers that the Treasury may confer on an independent valuer.
23.This part also includes provisions relating to the governance of the Bank of England, including a new statutory financial stability objective and the establishment of a Financial Stability Committee (FSC) as a subcommittee of a smaller court of directors of the Bank. As part of the measures to permit short-term nondisclosure of the provision of emergency liquidity, the requirement for the Bank to publish a weekly return is removed. This part also covers greater information sharing between the Authorities and repeals the “funds attached” rule concerning Scottish cheques. Measures to widen the disapplication of the prohibition of building societies granting floating charges to central banks and arrangements regarding financial collateral are also covered in this section.