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The Bank Recovery and Resolution (No. 2) Order 2014

S.I. 2014/3348 · Made 18 December 2014 · Extends to United Kingdom

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art. 2(1)words substitutedCredit Institutions and Investment Firms (Miscellaneous Definitions) 2026 reg. 22(2)(a)
art. 2(1)words substitutedCredit Institutions and Investment Firms (Miscellaneous Definitions) 2026 reg. 22(2)(b)
art. 2(1A)insertedCredit Institutions and Investment Firms (Miscellaneous Definitions) 2026 reg. 22(3)

Financial Services And Markets

Made 18th December 2014

Laid before Parliament 19th December 2014

Coming into force in accordance with article 1(2) and (3)

The Treasury make the following Order in exercise of the powers conferred by section 2(2) of the European Communities Act 1972 M1, section 192B(4) of the Financial Services and Markets Act 2000 M2 and section 230 of the Banking Act 2009 M3.

The Treasury are designated M4 for the purposes of the European Communities Act 1972 in relation to financial services.C1C2

Annotations to the whole text

Textual amendments

F1

Order revoked (14.12.2023 for the revocation of art. 227) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 1 Pt. 2 (with s. 1(4)); S.I. 2023/1382, reg. 2(c)(x)

Marginal citations

M1

1972 c. 68. Section 2(2) was amended by the Legislative and Regulatory Reform Act 2006 (c. 51), section 27(1)(a), and by the European Union (Amendment) Act 2008 (c. 7), section 3 and the Schedule, Part 1. By virtue of the amendment of section 1(2) by section 1 of the European Economic Area Act 1993 (c. 51), an order may be made under section 2(2) of the European Communities Act 1972 to implement obligations of the United Kingdom created or arising by or under the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 (Cm 2073) and the Protocol adjusting the Agreement signed in Brussels on 17th March 1993 (Cm 2183).

M2

2000 c. 8. Section 192B was inserted by the Financial Services Act 2012 (c. 21), section 27, which inserted Part 12A of FSMA.

M3

2009 c. 1.

M4

S.I. 2012/1759.

Modifications

C1

Order: power to modify conferred (11.7.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 3, 86(3), Sch. 1 Pt. 2; S.I. 2023/779, reg. 2(d)

C2

Order power to apply (with modifications) conferred (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 11 para. 165; S.I. 2023/779, reg. 4(ddd)(xiv)

Contents

  1. Part 1: Introductory provisions
  2. 1Citation and commencement
  3. 2Interpretation
  4. 3Application of Order
  5. Part 2: Designation of authorities and competent ministry Repealed
  6. 4Designation of the Bank as resolution authority Repealed
  7. 5Designation for the purposes of Article 59 of the recovery and resolution directive Repealed
  8. 6Designation of the Treasury as the ministry responsible for exercising the functions of the competent ministry Repealed
  9. Part 3: Recovery and resolution planning
  10. 7Recovery planning: preparatory steps and simplified obligations
  11. 8Resolution planning: preparatory steps and simplified obligations
  12. 9Consultation with the Financial Policy Committee
  13. 10Provision of information to EBA Repealed
  14. Part 4: Recovery plans
  15. Chapter 1: Assessment of recovery plan drawn up by an institution
  16. 11Application and interpretation of Chapter 1
  17. 12Assessment of plan
  18. 13Criteria for assessment
  19. 14Revision of plan
  20. 15Business changes and relevant measures
  21. Chapter 2: Assessment of group recovery plan where the PRA or FCA is the consolidating supervisor
  22. 16Application and interpretation of Chapter 2
  23. 17Duty to transmit a copy of group recovery plan
  24. 18Assessment of group recovery plan
  25. 19Purpose of assessment
  26. 20Timing of assessment of plan
  27. 21Joint assessment of plan Repealed
  28. 22Revision of plan
  29. 23Business changes and relevant measures
  30. 24Recovery plan for group institution
  31. 25References to EBA Repealed
  32. 26Requesting the assistance of EBA Repealed
  33. Chapter 3: Assessment of group recovery plan where neither the PRA nor the FCA is the consolidating supervisor
  34. 27Application and interpretation of Chapter 3 Repealed
  35. 28Purpose of assessment Repealed
  36. 29Joint assessment of plan Repealed
  37. 30Assessment of recovery plans drawn up on an individual basis Repealed
  38. 31References to EBA Repealed
  39. 32Requesting the assistance of EBA Repealed
  40. Chapter 4: Review of recovery plans and group recovery plans
  41. 33Review of recovery plan
  42. 34Review of group recovery plan assessed under Chapter 2
  43. 35Review of group recovery plan assessed under Chapter 3 Repealed
  44. Part 5: Resolution plans
  45. Chapter 1: Resolution plans for institutions
  46. 36Interpretation of Chapter 1
  47. 37The Bank's duty to draw up resolution plans
  48. 38Duty to transmit a copy of the resolution plan
  49. Chapter 2: Group resolution plan where the PRA or FCA is the consolidating supervisor
  50. 39Application of Chapter 2
  51. 40The Bank's duty to draw up group resolution plans
  52. 41Information to be transmitted for the purpose of drawing up group resolution plans
  53. 42Joint decision on adoption of group resolution plan Repealed
  54. 43References to EBA Repealed
  55. 44Requesting the assistance of EBA Repealed
  56. 45Duty to transmit a copy of the group resolution plan
  57. Chapter 3: Group resolution plan where neither the PRA nor the FCA is the consolidating supervisor
  58. 46Application and interpretation of Chapter 3 Repealed
  59. 47Joint decision on adoption of group resolution plan Repealed
  60. 48Failure to reach joint decision: disagreement by the Bank with a joint proposal Repealed
  61. 49Failure to reach joint decision: agreement by the Bank with a joint proposal Repealed
  62. 50Resolution plan for group entity Repealed
  63. 51References to EBA Repealed
  64. 52Requesting the assistance of EBA Repealed
  65. Chapter 4: Review of resolution plans and group resolution plans
  66. 53Review of resolution plan
  67. 54Review of group resolution plan drawn up by the Bank
  68. 55Review of group resolution plan drawn up by another resolution authority Repealed
  69. Chapter 5: Information and records for resolution planning
  70. 56Information required for resolution planning
  71. 57Notice of matters which could necessitate an amendment of a plan
  72. 58Records of financial contracts
  73. Part 6: Assessment of resolvability and removal of impediments to resolvability
  74. Chapter 1: Assessment of resolvability of institutions
  75. 59Application and interpretation of Chapter 1
  76. 60Assessment of resolvability
  77. Chapter 2: Assessment of resolvability of groups
  78. 61Application and interpretation of Chapter 2
  79. 62Assessment of group resolvability where the PRA or FCA is the consolidating supervisor
  80. 63Assessment of group resolvability where neither the PRA nor the FCA is the consolidating supervisor Repealed
  81. Chapter 3: Removal of impediments to resolvability of institutions
  82. 64Application and interpretation of Chapter 3
  83. 65Notice of determination
  84. 66Effect of notice of determination
  85. 67Right of appeal
  86. Chapter 4: Removal of impediments to resolvability of group entities where the PRA or FCA is the consolidating supervisor
  87. 68Application and interpretation of Chapter 4
  88. 69Report on substantive impediments to the resolvability of group entities
  89. 70Suspension of requirement to draw up or review group resolution plan
  90. 71Determining remedial measures
  91. 72Joint decision on impediments to group resolvability and remedial measures Repealed
  92. 73References to EBA Repealed
  93. 74Requesting the assistance of EBA Repealed
  94. Chapter 5: Removal of impediments to resolvability of groups where neither the PRA nor the FCA is the consolidating supervisor
  95. 75Application and interpretation of Chapter 5 Repealed
  96. 75AReport on substantive impediments to the resolvability of group entities Repealed
  97. 76Suspension of requirement to draw up or review group resolution plan Repealed
  98. 77Determining remedial measures Repealed
  99. 78Joint decision on impediments to group resolvability and remedial measures Repealed
  100. 79Failure to reach joint decision: disagreement by the Bank with joint proposals Repealed
  101. 80Failure to reach joint decision: agreement by the Bank with joint proposals Repealed
  102. 81References to EBA Repealed
  103. 82Requesting the assistance of EBA Repealed
  104. Part 7: Intra-group financial support
  105. Chapter 1: Authorisation of agreement for group financial support where the PRA or FCA is the consolidating supervisor
  106. 83Application and interpretation of Chapter 1
  107. 84Review of group financial support agreement and decision on authorisation
  108. 85Duty to transmit a copy of application
  109. 86Joint decision with other competent authorities Repealed
  110. 87References to EBA Repealed
  111. 88Requesting the assistance of EBA Repealed
  112. 89Duty to transmit a copy of authorised agreement
  113. 90Amendment of authorised agreement
  114. Chapter 2: Authorisation of agreement for group financial support where neither the PRA nor the FCA is the consolidating supervisor
  115. 91Application and interpretation of Chapter 2 Repealed
  116. 92Review of group financial support agreement and decision on authorisation Repealed
  117. 93Joint decision with other competent authorities Repealed
  118. 94References to EBA Repealed
  119. 95Requesting the assistance of EBA Repealed
  120. 96Amendment of authorised agreement Repealed
  121. Chapter 3: Approval of authorised agreements by the members of a UK group entity
  122. 97Interpretation of Chapter 3
  123. 98Requirement for approval of authorised agreement
  124. 98APublication of information concerning group financial support agreements
  125. 99Revocation of authorised agreement
  126. 100Obligation to provide annual report
  127. Chapter 4: Provision of group financial support
  128. 101Interpretation of Chapter 4
  129. 102Relevant notice from UK group entity: decision by the PRA or FCA
  130. 103Duties of consolidating supervisor where financial support agreed, prohibited or restricted
  131. 104Re-assessment of recovery plans by the PRA or FCA where it is not the consolidating supervisor Repealed
  132. 105Requesting the assistance of EBA Repealed
  133. 106Reciprocal support
  134. Part 8: Early intervention
  135. Chapter 1: Early intervention with respect to an institution
  136. 107Interpretation of Chapter 1
  137. 108Notice that institution meets the conditions for early intervention
  138. 109Deadline for compliance with measure for early intervention
  139. Chapter 2: Early intervention with respect to groups where the PRA or FCA is the consolidating supervisor
  140. 110Application and interpretation of Chapter 2
  141. 111Procedure for early intervention in respect of a UK group entity
  142. 112Procedure for early intervention in respect of a non-UK group entity Repealed
  143. 113Joint decisions about early intervention Repealed
  144. 114References to EBA Repealed
  145. 115Requesting the assistance of EBA Repealed
  146. Chapter 3: Early intervention with respect to groups where neither the PRA nor the FCA is the consolidating supervisor
  147. 116Application and interpretation of Chapter 3 Repealed
  148. 117Procedure for early intervention in respect of a UK group entity Repealed
  149. 118Joint decisions about early intervention Repealed
  150. 119References to EBA Repealed
  151. 120Requesting the assistance of EBA Repealed
  152. Part 9: Minimum requirement for own funds and eligible liabilities
  153. Chapter 1: Determination of minimum requirement for an institution
  154. 121Interpretation of Chapter 1
  155. 122Duties of the Bank in relation to minimum requirement
  156. 123Determination of minimum requirement
  157. 124Review of minimum requirement
  158. Chapter 2: Determination of minimum consolidated requirement where the PRA or FCA is the consolidating supervisor
  159. 125Application and interpretation of Chapter 2
  160. 126Determination of minimum consolidated requirement
  161. 127Joint determination Repealed
  162. 128References to EBA: determination of minimum consolidated requirement Repealed
  163. 129Review of minimum consolidated requirement
  164. Chapter 3: Determination of minimum consolidated requirement where neither the PRA nor the FCA is the consolidating supervisor
  165. 130Application and interpretation of Chapter 3 Repealed
  166. 131Joint determination of minimum consolidated requirement Repealed
  167. 132Review of minimum consolidated requirement Repealed
  168. Chapter 4: Determination of minimum requirements for group institutions where the PRA or FCA is the consolidating supervisor
  169. 133Application and interpretation of Chapter 4
  170. 134Duties of the Bank in relation to minimum requirement
  171. 135Determination of minimum requirement
  172. 136Joint determination of minimum requirements Repealed
  173. 137References to EBA: determination of minimum requirement Repealed
  174. 138Review of minimum requirements
  175. 139Minimum requirement for other group entities set up in the United Kingdom
  176. Chapter 5: Determination of minimum requirements for group institutions where neither the PRA nor the FCA is the consolidating supervisor
  177. 140Application and interpretation of Chapter 5 Repealed
  178. 141Duties of the Bank in relation to minimum requirement Repealed
  179. 142Determination of minimum requirement Repealed
  180. 143Joint determination of minimum requirements Repealed
  181. 144References to EBA: determination of minimum requirement Repealed
  182. 145Review of minimum requirements Repealed
  183. 146Minimum requirement for other group entities set up in the United Kingdom Repealed
  184. Chapter 6: Minimum requirement for own funds and eligible liabilities: other provisions
  185. 147Waiver of application of Chapter 4 ...
  186. 148Meeting minimum requirement through contractual bail-in instruments etc
  187. Part 10: Requirement to write down or convert capital instruments
  188. 149Application and interpretation of Part
  189. 150Determinations under section 6A and 81AA of the Banking Act 2009: preliminary steps for UK group entities
  190. 151Regulator to take alternative measures
  191. 152Determination that Case 2, 3, 4 or 5 is satisfied
  192. 153Joint determination under Article 59(3)(c) of the recovery and resolution directive in relation to a non-UK group entity Repealed
  193. Part 11: Removal of procedural impediments to application of bail-in tool
  194. 154Interpretation of Part
  195. 155Requirement to increase or remove limit on share capital
  196. 156Removal of impediments to the conversion of liabilities into shares
  197. Part 11A: Contractual recognition of bail-in
  198. 156AContractual recognition of bail-in: technical standards
  199. Part 12: Treatment of derivative contracts where bail-in option is applied
  200. 157Application and interpretation of Part
  201. 158Liabilities arising from derivative contracts
  202. Part 13: Preparation of business reorganisation plans after application of bail-in tool
  203. Chapter 1: Assessment of business reorganisation plan drawn up by an institution
  204. 159Application and interpretation of Chapter 1
  205. 160Assessment of business reorganisation plan
  206. 161Purpose of assessment
  207. 162Revision of plan
  208. Chapter 2: Assessment of business reorganisation plan drawn up by a single group entity
  209. 163Application and interpretation of Chapter 2
  210. 164Assessment etc of business reorganisation plan
  211. Chapter 3: Assessment of business reorganisation plan drawn up for relevant group where the PRA or FCA is the consolidating supervisor
  212. 165Application and interpretation of Chapter 3
  213. 166Duty to transmit a copy of business reorganisation plan Repealed
  214. 167Assessment of business reorganisation plan
  215. 168Purpose of assessment
  216. 169Assessment of plan where every group entity is set up in the United Kingdom
  217. 170Joint assessment of plan Repealed
  218. 171Revision of plan
  219. 172Assessment of business reorganisation plans drawn up on an individual basis
  220. 173References to EBA Repealed
  221. 174Requesting the assistance of EBA Repealed
  222. Chapter 4: Assessment of business reorganisation plan drawn up for relevant group where neither the PRA nor the FCA is the consolidating supervisor
  223. 175Application and interpretation of Chapter 4 Repealed
  224. 176Purpose of assessment Repealed
  225. 177Joint assessment of plan Repealed
  226. 178Assessment of business reorganisation plans drawn up on an individual basis Repealed
  227. 179References to EBA Repealed
  228. 180Requesting the assistance of EBA Repealed
  229. Part 14: Procedural obligations where an undertaking is failing or likely to fail
  230. 181Interpretation of Part
  231. 182Matters to be notified by the regulator to the Bank
  232. 183Notification that an undertaking is failing or likely to fail
  233. 184Duty to send copy of share transfer instrument etc to members and creditors of institution
  234. 184ANotifications under articles 182, 183 and 184
  235. Part 15: Applications to the court in relation to resolution action
  236. 185Stay of legal proceedings
  237. 186Remedies on judicial review
  238. Part 16: Cross-border group resolution Repealed
  239. Chapter 1: General provisions Repealed
  240. 187Principles for reaching decisions which may have an impact in two or more EEA States Repealed
  241. 188Information exchange Repealed
  242. 189Requirements for group resolution schemes Repealed
  243. Chapter 2: Resolution colleges Repealed
  244. 190Application of Chapter 2 Repealed
  245. 191Duty to establish a resolution college Repealed
  246. 192Membership of resolution college Repealed
  247. 193Functioning of resolution college Repealed
  248. 194Use of an existing resolution college Repealed
  249. Chapter 3: European resolution colleges Repealed
  250. 195Application of Chapter 3 Repealed
  251. 196Establishment and functioning of a European resolution college Repealed
  252. 197Recognition of third-country resolution action Repealed
  253. 198Use of an existing resolution college Repealed
  254. Chapter 4: Group resolution involving a group subsidiary where the PRA or FCA is the consolidating supervisor Repealed
  255. 199Application and interpretation of Chapter 4 Repealed
  256. 200Assessment of impact of notified measures Repealed
  257. 201Joint decision on adoption of group resolution scheme Repealed
  258. 202Requesting the assistance of EBA Repealed
  259. Chapter 5: Group resolution involving a group subsidiary where neither the PRA nor the FCA is the consolidating supervisor Repealed
  260. 203Application Chapter 5 Repealed
  261. 204Bank decision that group subsidiary meets the conditions for resolution Repealed
  262. 205Joint decision on adoption of group resolution scheme Repealed
  263. 206Failure to reach joint decision: disagreement by the Bank with joint proposals Repealed
  264. 207Requesting the assistance of EBA Repealed
  265. Chapter 6: Group resolution where EEA parent undertaking is set up in the United Kingdom Repealed
  266. 208Application and interpretation of Chapter 6 Repealed
  267. 209Bank decision that EEA parent undertaking meets the conditions for resolution Repealed
  268. 210Joint decision on adoption of group resolution scheme Repealed
  269. 211Requesting the assistance of EBA Repealed
  270. Chapter 7: Group resolution where EEA parent undertaking is set up in another EEA State Repealed
  271. 212Application of Chapter 7 Repealed
  272. 213Joint decision on adoption of group resolution scheme Repealed
  273. 214Failure to reach joint decision: disagreement by the Bank with joint proposals Repealed
  274. 215Requesting the assistance of EBA Repealed
  275. Part 17: Modified application of company law to banks etc in resolution
  276. 216Interpretation of Part
  277. 217Shadow directorship
  278. 218Modified application of legislation on cross-border mergers Repealed
  279. 219Modified application of the Companies Act 2006 (disapplication of Takeover Rules)
  280. 220Modified application of the Companies Act 2006 (disapplication of other requirements)
  281. 220AModified application of the Companies Act 2006 (shareholders’ rights)
  282. Part 18: Treasury support for investment firms
  283. 221Investment firms to be treated as financial institutions
  284. Part 19: Miscellaneous provisions
  285. 222Continuity Repealed
  286. 223Duty to co-operate
  287. 224Non-binding co-operation arrangements in line with EBA framework arrangements Repealed
  288. 225Duty to inform EBA of imposition of penalties Repealed
  289. Part 20: Amendments
  290. 226Amendments of primary and secondary legislation
  291. Part 21: Review
  292. 227Review Repealed
  293. Signature
  294. Schedule A1: Information to be contained in a recovery plan or group recovery plan
  295. 1Paragraph 1
  296. 2Paragraph 2
  297. 3Paragraph 3
  298. 4Paragraph 4
  299. 5Paragraph 5
  300. 6Paragraph 6
  301. 7Paragraph 7
  302. 8Paragraph 8
  303. 9Paragraph 9
  304. 10Paragraph 10
  305. 11Paragraph 11
  306. 12Paragraph 12
  307. 13Paragraph 13
  308. 14Paragraph 14
  309. 15Paragraph 15
  310. Schedule 1: Information to be contained in a resolution plan
  311. 1Impediments to the effectiveness of resolution action
  312. 2The context for resolution action
  313. 3Application for the use of the Bank's facilities
  314. 4Options for applying the resolution tools and exercising the resolution powers
  315. Schedule 2: Information to be contained in a group resolution plan
  316. 1The context for resolution action
  317. 2Contents of group resolution plan
  318. 3Paragraph 3 Repealed
  319. 4Paragraph 4
  320. Schedule 2A: Additional information which may be required for the purposes of a resolution plan or group resolution plan
  321. 1Paragraph 1
  322. 2Paragraph 2
  323. Schedule 2B: Matters that the Bank is to consider when assessing resolvability
  324. 1Paragraph 1
  325. 2Paragraph 2
  326. Schedule 3: Amendments
  327. Part 1: Amendments of FSMA
  328. 1Amendments of FSMA
  329. 2Recovery plans
  330. 3Rules about resolution packs: duty to consult
  331. 4Special provision relating to adequacy of resolution plans
  332. 5Recovery plans and resolution packs: restriction on duty of confidence
  333. Part 2: Amendments of other primary legislation
  334. 6Amendment of the Financial Services (Banking Reform) Act 2013
  335. Part 3: Amendments of secondary legislation
  336. 7Financial Markets and Insolvency (Settlement Finality) Regulations 1999
  337. 8Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001
  338. 9Financial Collateral Arrangements (No 2) Regulations 2003
  339. 10Credit Institutions (Reorganisation and Winding up) Regulations 2004
  340. 11Financial Services and Markets Act 2000 (Prescribed Financial Institutions) Order 2013
  341. 12Financial Services and Markets Act 2000 (Qualifying EU Provisions) Order 2013
  342. 13Capital Requirements Regulations 2013
  343. Schedule 4: Modified application of the Companies Act 2006 to banks etc in resolution
  344. Part 1: Provisions concerning the exercise of certain rights of shareholders in listed companies
  345. 1Paragraph 1
  346. 2Paragraph 2
  347. 3Paragraph 3
  348. 4Paragraph 4
  349. 5Paragraph 5
  350. 6Paragraph 6
  351. 7Paragraph 7
  352. 8Paragraph 8
  353. 9Paragraph 9
  354. 10Paragraph 10
  355. 11Paragraph 11
  356. 12Paragraph 12
  357. 13Paragraph 13
  358. 14Paragraph 14
  359. 15Paragraph 15
  360. 16Paragraph 16
  361. 17Paragraph 17
  362. 18Paragraph 18
  363. 19Paragraph 19
  364. 20Paragraph 20
  365. 21Paragraph 21
  366. 22Paragraph 22
  367. 23Paragraph 23
  368. Part 2: Provisions concerning mergers and divisions of public limited liability companies
  369. 24Paragraph 24
  370. Part 3: Provisions concerning the maintenance and alteration of a company's share capital
  371. 25Paragraph 25
  372. 26Paragraph 26
  373. 27Paragraph 27
  374. 28Paragraph 28
  375. 29Paragraph 29
  376. 30Paragraph 30
  377. 31Paragraph 31
  378. 32Paragraph 32
  379. 33Paragraph 33
  380. 34Paragraph 34
  381. 35Paragraph 35
  382. 36Paragraph 36
  383. Explanatory note