Legal Transfer Mechanisms outside of the Part VII
Barclays intends to use the Part VII where appropriate given the benefits that this mechanism offer clients. However, in some circumstances, Barclays will use other mechanisms to transfer contracts and/or migrate business relationships including:
Existing Transfer Provisions
In relation to certain contracts that cannot transfer or be duplicated under the Part VII or where the use of Part VII is not possible or appropriate, we will effect the transfer to BBI in accordance with any explicit rights of Barclays PLC to transfer to affiliates as set out in the respective contractual documentation and in compliance with applicable contractual and legal formalities.
- Transfer Right (Debt) – In certain products (mainly deposits and other cash management products), the underlying agreements provide for notice of transfer. Barclays will set up relevant processes to comply with the relevant formalities to effect the transfer and affected clients will receive further communications about the timing and formalities for the transfer in due course.
In relation to contracts where no explicit transfer mechanisms are set out, and in circumstances where the use of the Part VII is not possible or appropriate, it will be necessary to execute a novation agreement (or, depending on the relevant jurisdiction, another similar agreement achieving equivalent effect) substituting BBI as the new contracting counterparty with you. We will set up a master novation agreement appropriate for the relevant product agreements and you will receive further communications about the novation process in due course.
Changes to Terms and Conditions
For certain products governed by terms and conditions (other than, for example, the Investment Banking Terms of Business or the Markets Terms of Business, which we will replicate and amend using the Part VII Transfer process), Barclays is permitted to make certain unilateral changes (including transfers to affiliates) on written notice. Clients with products governed by terms and conditions to be amended outside of the Part VII process will receive further communications about the timing and formalities to effect the relevant changes in due course.
Article 58 of the Italian Consolidated Banking Act (Article 58) – in respect of certain Italian law governed products (mainly legacy mortgages, cash accounts and products involving registered security interests under Italian law), Barclays will effect the transfer to BBI using Article 58, which enables the bulk transfer of certain assets and legal relationships through the publication of a notice in the Official Gazette of the Italian Republic and the completion of certain other formalities.
What is the anticipated timeline for non-Part VII process?
We plan to engage you from October 2018 onwards in relation to re-papering outside of the Part VII process.