Paragraph 10 I1

(1)

Section 6C (mandatory reduction instruments: implementation of requirements of section 6B) is amended as follows.

(2)

In subsection (4)(a)—

(a)

for “parent” (where it first appears) substitute “ UK parent ”, and

(b)

for the words from “resolution” to the end substitute “ Bank of England ”.

(3)

In subsection (4)(b) for “State or a government entity” substitute “ Treasury ”.

(4)

In subsection (4)(d), for the words from “complies” to the end substitute “ represents appropriate compensation to the affected creditor for any loss incurred in consequence of the conversion of that instrument F1or liability. ”.

(5)

After subsection (4) insert—

“(4A)
Where different conversion rates are applied to different classes of instrument F2or liability, a lower conversion rate must be applied to subordinated debt than is applied to debts ranking higher in the hierarchy of claims in normal insolvency proceedings.”.

(6)

In subsection (7), omit the definition of “resolution authority”.

Annotations

Textual amendments

F1: Words in Sch. 1 para. 10(4) inserted (30.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 76(2)(a)
F2: Words in Sch. 1 para. 10(5) inserted (30.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 76(2)(b)

Commencement

I1: Sch. 1 para. 10 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(2)