Schedule 9: Wholesale cash distribution Part 2 – Amendments to Part 6 of the Financial Services (Banking Reform) Act 2013
Part 2 of this Schedule makes amendments to Part 6 of the Financial Services (Banking Reform) Act 2013. These amendments extend the special administration regime for operators of certain infrastructure systems to also include persons recognised for the purposes of Part 5A of the Banking Act 2009. This ensures that a special administration regime (SAR) applies to entities designated as having systemic significance.
	Paragraph 2 provides that Part 6 of the Financial Services (Banking Reform) Act 2013 (to provide for special administration arrangements to apply to certain persons) is amended as follows.
	Paragraph 3 amends section 111 (financial market infrastructure administration) to refer to a new term "financial market and cash infrastructure" for the purposes of Part 6.
	Paragraph 4 provides that section 112 (interpretation: infrastructure companies) is amended to include persons recognised under Part 5A as having systemic significance within the definition of an "infrastructure company".
	Paragraph 5 amends section 113 (interpretation: other expressions) to include within the definition of "the relevant system" in relation to an infrastructure company falling within section (2)(ba) "any system used by the company to facilitate or control wholesale cash distribution".
	Paragraph 6 amends section 115 (objective of FMI administration) to provide that where an FMI administrator is appointed in relation to a company that is a person recognised for the purposes of Part 5A of the Banking Act 2009, the objective of the FMI administration is (a) to ensure that the functions performed by the person in relation to wholesale cash distribution are and continue to be performed efficiently and effectively, and (b) to ensure by one or both of the specified means that it becomes unnecessary for the FMI administration order to remain in force for that purpose or those purposes.
	Paragraph 7 amends section 119 (continuity of supply). The definition of "supply" is amended to include, in the case of an infrastructure company that is a person recognised for the purposes of Part 5A of the Banking Act 2009, goods and equipment used by the person in connection with wholesale cash distribution activities.
	Paragraph 8 amends section 120(8) (power to direct FMI administrator) to state that the section does not limit the powers conferred on the Bank by section 206M(directions) of the Banking Act 2009 in relation to a person recognised as having systemic significance for wholesale cash distribution.
	Paragraph 9 amends section 127(1) (interpretation of Part) to state that the terms "wholesale cash distribution" and "wholesale cash distribution activities" have the meanings given by section 113.