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Section 5 Code of practiceI1I2

United Kingdom

(1)

F1The Treasury shall issue a code of practice about—

(a)

the discharge of the duty imposed by section 6B (mandatory write-down, conversion etc of capital instruments), and

(b)

the use of—

(i)

the stabilisation powers,

(ii)

the bank insolvency procedure, and

(iii)

the bank administration procedure.

(2)

The code may, in particular, provide guidance on—

(a)

how the special resolution objectives are to be understood and achieved,

(b)

the choice between different options,

(c)

the information to be provided in the course of a consultation under this Part,

(d)

the giving of advice by one relevant authority to another about whether, when and how the stabilisation powers are to be used,

(e)

how to determine whether Condition 2 in section 7 is met,

(f)

how to determine whether F2tests for the use of the stabilisation powers in sections 8 and 8ZA are satisfied,

(g)

sections 63 and 66, and

(h)

compensation.

(2A)

F3The code must include guidance on the contents of a report, and of any interim report, under section 214F of the Financial Services and Markets Act 2000 (recapitalisation payment: report).

(3)

Sections 12F4, 12ZA and 13 require the inclusion in the code of certain matters about bridge banksF5, asset management vehicles and temporary public ownership.

(4)

The relevant authorities shall have regard to the code.

(5)

For the purpose of this section the relevant authorities are—

(a)

the Treasury,

(b)

F6the PRA,

(ba)

the FCA, and

(c)

the Bank of England.

Annotations

Textual amendments

F1

S. 5(1) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 9(2)

F2

Words in s. 5(2)(f) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 9(3)

F3

S. 5(2A) inserted (16.7.2025) by Bank Resolution (Recapitalisation) Act 2025 (c. 15), ss. 5, 8(2); S.I. 2025/872, reg. 2(e)

F4

Words in s. 5(3) inserted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 9(4)(a)

F5

Words in s. 5(3) inserted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 9(4)(b)

F6

S. 5(5)(b)(ba) substituted for s. 5(5)(b) (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 6 (with Sch. 20); S.I. 2013/423, art. 3, Sch.

Commencement

I1

S. 5 in force at 17.2.2009 for specified purposes by S.I. 2009/296, arts. 2, 3, Sch. para. 1

I2

S. 5 in force at 21.2.2009 in so far as not already in force by S.I. 2009/296, arts. 2, 3, Sch. para. 1