Clause 195
Banking Bill
6:00 pm
David Gauke (Shadow Minister, Treasury; South West Hertfordshire, Conservative)
I have a brief query for the Minister. The clause relates to the definition of “issue”. The explanatory notes state:
“The definition ensures that a banknote is regarded as issued once it enters circulation, even if it enters circulation in error or as a result of theft.”
I assume that the reason is that a note issued in that way still needs to be treated as issued to protect the position of noteholders. There could be a mismatch for the protection of noteholders. Was equivalent protection provided under the old regime?