The Banking Act 2009 establishes a special resolution regime providing the Bank of England, HM Treasury and the FSA with the tools to deal with banks that are failing, or are about to fail to meet, their threshold conditions.
Under the Banking Act 2009, credit unions and building societies are explicitly excluded from the definition of "bank", and consequently from the scope of Parts 1 to 3 of the Banking Act. Prior to this exclusion order, insurance companies did not have the benefit of an explicit exclusion from the definition of a bank, and consequently might have inadvertently fallen within the scope of the Act.
This order now has the effect of excluding insurers from the application of the Banking Act 2009.
For further information: Banking Act (Exclusion of Insurers) Order 2010