Schedule 9: Wholesale cash distribution Part 1 – New Part 5A of the Banking Act 2009 Recognised persons Section 206H: "Market significance" and "systemic significance"
This section explains the relevance of "market significance" and "systemic significance" in the context of wholesale cash oversight orders.
	Subsection (1) provides that a wholesale cash order must specify whether the person in respect of whom the order is made is recognised as having market significance only, or as also having systemic significance.
	Subsection (2) provides that HM Treasury may recognise a person as having market significance only if satisfied that any significant deficiency in, or disruption to, the performance of the person’s relevant functions in relation to wholesale cash distribution activities would be likely to undermine the effectiveness, resilience, or sustainability of wholesale cash distribution throughout the United Kingdom, or throughout any part of the United Kingdom.
	Subsection (3) provides that HM Treasury may recognise a person as having systemic significance only if satisfied that any significant deficiency in, or disruption to, the performance of the person’s relevant functions in relation to wholesale cash distribution activities would be likely (in addition to the consequences mentioned above) to threaten the stability of, or confidence in, the UK financial system, or to have serious consequences for business or other interests throughout the United Kingdom or any part of the United Kingdom.
	Subsection (4) provides that where a person is part of a group, HM Treasury may have regard to functions performed by other members of the group when determining the matters mentioned in subsection (2) or (3). In this subsection "group" has the meaning given by section 421 of the Financial Services and Markets Act 2000 (see subsection (5)).
	Subsection (6) provides that HM Treasury may not recognise a person as having systemic significance if the person is a company wholly owned by the Crown.