Clause 20 - Control of business transfers

Part of Financial Services Bill – in a Public Bill Committee at 10:00 am on 8 March 2012.

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Photo of Mark Hoban Mark Hoban The Financial Secretary to the Treasury 10:00, 8 March 2012

Part 7 of FSMA provides for the transfer of insurance or banking businesses through a process of court approval. The process is used extensively for insurance companies, so much so that the tax rules dealing with it are complex, but it has not been used for the transfer of banking businesses. I understand that the courts are normally used for the internal reorganisation of insurance companies, while banking businesses are normally transferred through a takeover—for example, Lloyds Banking Group’s acquisition of Halifax Bank of Scotland.