§ '(1) A notice under section [Reciprocal facilities for financial business] above relating to the carrying on of a deposit-taking business as a recognised bank or licensed institution within the meaning of the Banking Act 1979 shall be served by the Treasury and may be either a disqualification notice or a partial restriction notice.
§ (2) A disqualification notice relating to such business shall have the effect of—
- (a) cancelling any recognition or licence granted to the person concerned under the Banking Act 1979; and
- (b) disqualifying him from becoming a recognised bank or licensed institution within the meaning of that Act.
§ (3) A partial restriction notice relating to such business may—
- (a) prohibit the person concerned from dealing with or disposing of his assets in any manner specified in the direction;
- (b) impose limitations on the acceptance by him of deposits;
- (c) prohibit him from soliciting deposits either generally or from persons who are not already depositors;
- (d) prohibit him from entering into any other transaction or class of transactions;
- (e) require him to take certain steps, to pursue or refrain from pursuing a particular course of activities or to restrict the scope of his business in a particular way.
§ (4) The Treasury shall serve on the Bank of England a copy of any notice served by them under section [Reciprocal facilities for financial business] above.
§ (5) Any person who contravenes any provision of a partial restriction notice served on him by the Treasury under this section shall be guilty of an offence and liable—
- (a) on conviction on indictment, to a line;
- (b) on summary conviction, to a fine not exceeding the statutory maximum.
§ (6) Any such contravention shall be actionable at t he suit of any person who suffers loss as a result of the contravention or is otherwise adversely affected by it. but no such contravention shall invalidate any transaction.
(7) At the end of subsection (1) of section 8 of the Banking Act 1979 (power to give directions in connection with termination of deposit-taking authority) there shall be inserted—
(d) at any time after a disqualification notice has been served on the institution by the Treasury under section [Reciprocal facilities for financial business] of the Financial Services Act 1986…[Mr. Howard.]
§ Brought up, read the First and Second time, and added to the Bill.