The Bank Levy (Amendment of Schedule 19 to the Finance Act 2011) Regulations 2016

• Citation: S.I. 2016/874
• Sections: 4

Section 1 Citation, commencement and effect

(1) These Regulations may be cited as the Bank Levy (Amendment of Schedule 19 to the Finance Act 2011) Regulations 2016 and come into force on 1st October 2016.

(2) These Regulations have effect in respect of accounting periods ending on or after 1st October 2016.

Section 2 Amendment of Schedule 19 to the Finance Act 2011

Schedule 19 to the Finance Act 2011 is amended as follows.

Section 3 Amendment of Part 4 (chargeable equity and liabilities)

In paragraph 31, for sub-paragraph (4) substitute—

(4) Securities are “high quality” if—

(a) they are debt securities issued by—

(i) the European Central Bank, a member State’s central bank or the central government of a member State,

(ii) the central bank of a country (other than a member State) where the exposure to the bank is assigned a credit assessment of at least credit quality step 1, as provided by Article 10(1)(b)(ii) of Commission Regulation 2015/61, or

(iii) the central government of a country (other than a member State) where the government is assigned a credit assessment of at least credit quality step 1, as provided by Article 10(1)(c)(ii) of Commission Regulation 2015/61, or

(b) they are securities, including debt securities, issued by the multinational development banks or the international organisations described in Article 10(1)(g) of Commission Regulation 2015/61.

Section 4 Amendment of Part 8 (definitions)

(1) In paragraph 70(1)—

(a) for the definition of “high quality liquid asset” substitute—

“high quality liquid asset”, in relation to an entity or group of entities, means an asset (within the meaning of this Schedule) which—

is a liquid asset to which Article 416 of Regulation ( EU ) No 575/2013 of the European Parliament and the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms applies, and

falls within the description of “level 1 assets” given by Article 10(1) of Commission Regulation 2015/61;

(b) after the definition of “the chargeable period”, insert—

“Commission Regulation 2015/61” means Commission Delegated Regulation (EU) 2015/61 of 10 October 2014 to supplement Regulation (EU) No 575/2013 of the European Parliament and the Council with regard to liquidity coverage requirement for Credit Institutions;

(2) Omit paragraph 70(4).