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The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020

Draft. This instrument was laid in draft and may differ from the one made. Look for the made version under its title.

Draft 2020, ISBN 9780348213676

Original text. legislation.gov.uk does not revise statutory instruments, so later amendments are not shown here. Changes made to it are listed under each provision when known.

Draft Regulations laid before Parliament under paragraph 2A(3)(a) of Schedule 2 to the European Communities Act 1972 and paragraph 1(1) of Schedule 7 to the European Union (Withdrawal) Act 2018, for approval by resolution of each House of Parliament.

Financial Services And Markets

Made ***

Coming into force in accordance with regulation 1(2) to (4)

The Treasury, in exercise of the powers conferred by section 2(2) of the European Communities Act 1972f1 and section 8(1) of, and paragraph 21 of Schedule 7 to, the European Union (Withdrawal) Act 2018f2, make the following Regulations.

The Treasury are designatedf3 for the purposes of the European Communities Act 1972 in relation to financial services.

A draft of these Regulations has been approved by a resolution of each House of Parliament in accordance with paragraph 2A(3)(a) of Schedule 2 to the European Communities Act 1972 and paragraph 1(1) of Schedule 7 to the European Union (Withdrawal) Act 2018.

Annotations to the whole text

Footnotes

f1

1972 c. 68. The European Communities Act 1972 was repealed by section 1 of the European Union (Withdrawal) Act 2018 (c. 16) with effect from exit day, but saved with modifications until IP completion day by section 1A of that Act (as inserted by section 1 of the European Union (Withdrawal Agreement) Act 2020 (c.1)). Section 2(2) of the European Communities Act 1972 was amended by section 27(1) of the Legislative and Regulatory Reform Act 2006 (c. 51) and by section 3(3) of, and Part 1 of the Schedule to, the European Union (Amendment) Act 2008 (c. 7). By virtue of the amendment of section 1(2) by section 1 of the European Economic Area Act 1993 (c. 51), regulations 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 that Agreement signed at Brussels on 17th March 1993 (Cm 2183). Paragraph 1A was inserted into Schedule 2 by section 28 of the Legislative and Regulatory Reform Act 2006.

f2

2018 c.16.

f3

S.I. 2012/1759 section 4.

Contents

  1. Part 1: General
  2. 1Citation and commencement
  3. Part 2: Amendment of Primary Legislation made under the European Communities Act 1972
  4. Chapter 1: Amendment of the Financial Services and Markets Act 2000
  5. 2Amendment of the Financial Services and Markets Act 2000
  6. Chapter 2: Amendment of the Banking Act 2009
  7. 3Introduction
  8. 4Interpretation
  9. 5Removal of impediments to the exercise of stabilisation powers etc.
  10. 6Mandatory write-down, conversion etc.
  11. 7Mandatory write-down, conversion etc.
  12. 8Mandatory write-down, conversion etc.
  13. 9Bail-in: sequence of write-down and conversion of capital instruments and liabilities
  14. 10Special bail-in provision
  15. 11General interpretation of section 48B
  16. 12Pre-conditions for financial assistance: duty of Bank to give information
  17. 13Cases where mandatory write-down, conversion etc. applies: banking group companies
  18. 14Groups: sale to commercial purchaser and transfer to bridge bank: holding companies
  19. 15Groups: transfer to asset management vehicle: holding companies
  20. 16Groups: bail-in option: holding companies
  21. 17Groups: bail-in option: holding companies
  22. 18Groups: bail-in option: holding companies
  23. 19Groups: bail-in option: holding companies
  24. 20Groups: bail-in option: holding companies
  25. 21Resolution of banks not regulated by the PRA
  26. 22Resolution of recognised central counterparties
  27. 23Recognition of third-country resolution actions
  28. 24Resolution of UK branches of third-country institutions
  29. 25Index of defined terms
  30. Part 3: Amendment of Secondary legislation made under the European Communities Act 1972
  31. 26Amendment of the Financial Markets and Insolvency (Settlement Finality) Regulations 1999
  32. 27Amendment of the Credit Institutions (Reorganisation and Winding up) Regulations 2004
  33. 28Amendment of the Banking Act 2009 (Restriction of Special Bail-in Provisions, etc) Order 2014
  34. 29Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  35. 30Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  36. 31Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  37. 32Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  38. 33Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  39. 34Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  40. 35Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  41. 36Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  42. 37Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  43. 38Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  44. 39Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  45. 40Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  46. 41Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  47. 42Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  48. 43Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  49. 44Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  50. 45Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  51. 46Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  52. 47Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  53. 48Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  54. 49Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  55. 50Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  56. 51Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  57. 52Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  58. 53Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  59. 54Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  60. 55Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  61. 56Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  62. 57Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  63. 58Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  64. 59Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  65. 60Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  66. Part 4: Amendment of legislation made under the European Union (Withdrawal) Act 2018
  67. Chapter 1: Amendment of Primary Legislation
  68. 61Amendment of the Banking Act 2009
  69. 62Amendment of the Banking Act 2009
  70. 63Amendment of the Banking Act 2009
  71. 64Amendment of the Banking Act 2009
  72. 65Amendment of the Banking Act 2009
  73. 66Amendment of the Banking Act 2009
  74. 67Amendment of the Banking Act 2009
  75. 68Amendment of the Banking Act 2009
  76. 69Amendment of the Banking Act 2009
  77. 70Amendment of the Banking Act 2009
  78. 71Amendment of the Banking Act 2009
  79. 72Amendment of the Banking Act 2009
  80. Chapter 2: Amendment of Secondary Legislation
  81. 73Amendment of the Credit Institutions (Reorganisation and Winding up) Regulations 2004
  82. 74Amendment of the Bank Recovery and Resolution (No.2) Order 2014
  83. Chapter 3: Amendment of EU Exit Legislation
  84. 75Amendment of the Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018
  85. 76Amendment of Schedule 1
  86. 77Amendment of Schedule 3
  87. 78Amendment of Schedule 4
  88. 79Amendment of the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019
  89. Chapter 4: Revocation of technical standards under the Recovery and Resolution Directive
  90. 80Revocation of technical standards under the Recovery and Resolution Directive
  91. Part 5: Other Provision made under the European Communities Act 1972
  92. Chapter 1: Suspension of obligations, interests and rights
  93. 81Interpretation
  94. 82Interpretation
  95. 83Suspension of obligations prior to exercise of stabilisation powers
  96. 84Suspension of security interests prior to exercise of stabilisation powers
  97. 85Suspension of termination rights prior to exercise of stabilisation powers
  98. 86Suspension prior to exercise of stabilisation powers: procedure
  99. 87Restriction on subsequent suspension
  100. 88Groups
  101. 89Suspension of obligations when Bank is exercising a stabilisation power
  102. 90Modification of Part for banks not regulated by the PRA
  103. Chapter 2: Power to prohibit distributions
  104. 91Power to prohibit distributions
  105. Chapter 3: Transfer of losses or capital between members of a group
  106. 92Transfer of losses or capital between members of a group
  107. Chapter 4: Contractual recognition of bail-in
  108. 93Interpretation
  109. 94Requirement to include a contractual term recognising bail-in
  110. 95Undertakings required to include a contractual term
  111. 96Contracts for which a contractual term is required
  112. 97Content of required term
  113. 98Evidence to demonstrate compliance with regulation 94 obligation
  114. 99Exclusions
  115. 100Determination of impracticality
  116. 101Suspension of the regulation 94 obligation
  117. 102Assessment of the determination of impracticability
  118. 103Determination that term is not impracticable
  119. 104Assessment of resolvability
  120. 105Exercise of power to remove impediments to resolvability
  121. 106Exclusion of liabilities from the minimum requirement for own funds and eligible liabilities
  122. 107Exercise of resolution powers where contractual term not included
  123. Chapter 5: Amendments to priority of debts in insolvency
  124. 108Transitional provision
  125. Amendment of the Insolvency Act 1986
  126. 109Introduction
  127. 110Non-preferential debts in company voluntary arrangements
  128. 111Non-preferential debts in winding up of companies
  129. 112Non-preferential debts in bankruptcy proceedings
  130. 113Interpretation
  131. 114Administration
  132. Amendment of the Insolvency (Northern Ireland) Order 1989
  133. 115Introduction
  134. 116Non-preferential debts in company voluntary arrangements
  135. 117Non-preferential debts in winding up of companies
  136. 118Non-preferential debts in bankruptcy proceedings
  137. 119Interpretation
  138. 120Administration
  139. Further Amendment of Insolvency Legislation
  140. 121Amendments of the Insolvent Partnerships Order 1994
  141. 122Amendments of the Insolvent Partnerships Order (Northern Ireland) 1995
  142. 123Housing Act 1996
  143. 124Housing and Regeneration Act 2008
  144. 125Housing (Scotland) Act 2010
  145. 126Bankruptcy (Scotland) Act 2016
  146. 127Bankruptcy (Scotland) Act 2016
  147. 128Bankruptcy (Scotland) Act 2016
  148. Signature
  149. Explanatory note