Regulation 9 Grounds for making an order under regulation 8I1

United Kingdom

(1)

In this regulation “relevant measure” does not include—

(a)

the application of a resolution tool within the meaning given by Article 2.1(19) of the recovery and resolution directive;

(b)

the exercise of a resolution power within the meaning given by Article 2.1(20) of the recovery and resolution directive;

(c)

any other measure to which Article 66 of the recovery and resolution directive applied immediately before F1IP completion day.

(2)

The court may make an order under regulation 8 only if the court is satisfied that one or more of the following conditions are met—

(a)

that if an order is not made (on application by the Bank)—

(i)

the relevant measure or relevant proceedings will have an adverse effect on financial stability in the United Kingdom;

(ii)

the taking of action in relation to a branch of the relevant institution located in the United Kingdom is necessary to achieve one or more of the special resolution objectives (within the meaning given in section 4 of the Banking Act 2009);

(b)

that an order should be made (on application by the Bank or a UK creditor) because under the relevant measure or in the relevant proceedings UK creditors of the relevant institution would be materially prejudiced by the operation of the law of the EEA State under which the measure was adopted or imposed or the proceedings were opened—

(i)

in relation to its treatment of the United Kingdom as a State which is outside the EEA; or

(ii)

by reason of its different treatment of UK creditors by comparison with its treatment of EEA creditors who have similar rights;

(c)

that having regard to the operation of the law of the EEA State under which the measure was adopted or imposed or the proceedings were opened, a refusal to make the order (on application by the Bank or a UK creditor) would be unlawful under section 6 of the Human Rights Act 1998 M1 (public authority not to act incompatibly with European Convention on Human Rights).

(3)

Where the court makes an order under regulation 8—

(a)

the court must state in the order which one or more of the conditions specified in paragraph (2) are met; and

(b)

an officer of the court must serve a copy of the order on—

(i)

the applicant for the order;

(ii)

if the Bank is not the applicant, the Bank;

(iii)

the Prudential Regulation Authority;

(iv)

the Financial Conduct Authority;

(v)

the relevant institution.

Annotations

Textual amendments

F1: Words in reg. 9(1)(c) substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 13(f)

Marginal citations

M1: 1998 c. 42.

Commencement

I1: Reg. 9 in force at 31.12.2020 on IP completion day (in accordance with 2020 c. 1, Sch. 5 para. 1(1)), see reg. 1(3)

Notes on Chapter 1

Textual amendments

F1: Words in Pt. 3 Ch. 1 heading substituted (30.12.2020) by The Financial Services and Economic and Monetary Policy (Consequential Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1301), regs. 1, 3, Sch. para. 13(c)