FMLC has written to the Treasury outlining its concerns over:
- doubts on whether insurance companies fall within the definition of "bank" used in the Act: FMLC requests clarification that they are not intended to do so;
- the wide powers of BoE to terminate trusts which are part of a transfer instrument under the Act: FMLC wants at least guidance on when BoE might use these powers, or preferably an amendment to the Act to protect trust beneficiaries;
- the scope of the "Safeguards" Order because the definition of "financial instruments" is too narrow and because it seems to exclude entire master netting agreements if one single transaction falls outside scope; and
- lack of consistency between insolvency rules and the Act.