The Act provides the framework within which a single regulator for the financial services industry, the Financial Services Authority ("the Authority"), will operate. It equips the Authority with a full range of statutory powers and provides further protection for consumers.

The power of most relevance to the Agency is contained in Part VII of the Act. This Part creates a mechanism for the transfer of banking and insurance business subject to a court procedure. The whole business of the transferor is transferred including any securities.

The Court procedure comprises the submission of a Scheme detailing the transferee, what is being transferred and the date of transfer (effective date) and the transferor. The Order granted by the Court vests the business in the Transferee on the effective date without any further act or instrument. The Order is usually granted by the High Court Chancery Division in London but may be granted by the Scottish Courts. If the transferee makes application to do so referring to the Schedule and Order the Title Sheet can be updated or the Scheme and Order can be used as links in title.

It should be noted that the transferor continues to exist as an entity. Securities granted in favour of the transferor before the effective are normally included in the scheme and can be accepted for registration if the Scheme and Order are referred to and the application made by the transferee. Discharges should be granted by the transferee.

The Scheme and Transfer are put into the common links and need not be further examined.

General Instructions

1.1 With effect from ("the effective date") the business of (Transferor) is transferred to and vested in the Transferee pursuant to a banking business transfer scheme (‘the scheme’) under Part VII of the Financial Services and Markets Act 2000 as approved by Order in the High Court of Justice, Chancery Division on (date of the Order) (‘the order’).

Standard securities executed before the effective date

2.1 Any standard security granted in favour of the transferor executed before the effective date will vest in transferee and will be acceptable for registration when submitted on or after that date as part of an application for registration if the following points are met:-
(a) The application form specifies the transferee as the applicant.
(b) The Scheme and Order is listed on the Form 4 submitted with the application. A copy of the Scheme and Order need not be submitted.
(c) The entry in the Charges Section of the Title Sheet will be a standard security in favour of the transferor. A note should be added to both the entry and the Charge Certificate in following terms:
Note: With effect from 1 October 2007 the business of said Transferor vests in Transferee pursuant to a banking business transfer scheme under Part VII of the Financial Services and Markets Act 2000 as approved by Order by the High Court of Justice Chancery Division dated (date of order)
2.2 The creditor in the Charge Certificate should be amended to the Transferee. (see Quality Initiative Update 1 and addendum for instructions).

Discharges executed before the effective date

3.1 Discharges granted by Transferor must bear to have been executed before the effectve date. There is no objection to recording or registering them on or after that date since no completion of title is involved.

NB The name of the relevant Transferor and Transferee should be inserted as appropriate. Check Common Links index for details of effective date and date of Order.