Our client alert dated 4th February 2009, “UK Government’s Banking Support Measures,” reported on the comprehensive programme of legislative and financial measures introduced by the UK Government (“Govt.”) to help support the UK banking industry through the ongoing global financial turmoil. This programme comprised the Banking Bill involving long-term regulatory reforms, as well as measures designed to provide more immediate financial relief which the Govt. announced on 8th October 2008 and 19th January 2009, respectively.

The Banking Bill has now received royal assent, creating the Banking Act 20091 effective from 21st February 2009, together with a series of statutory instruments to implement its provisions. In addition, the Govt. has published further details relating to the operation of the Asset Protection Scheme (“APS”) and the Asset Purchase Facility (“APF”) which were initially announced on 19th January 2009.

We summarise the latest developments below.

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