OpenLegislation

The Bank Recovery and Resolution Order 2014

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

Draft 2014, ISBN 9780111123782

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 Order laid before Parliament under paragraph 2(2) of Schedule 2 to the European Communities Act 1972, for approval by resolution of each House of Parliament.

Banks And Banking

Financial Services And Markets

Made ***

Coming into force 1st January 2015

The Treasury are designatedf1 for the purposes of section 2(2) of the European Communities Act 1972f2 in relation to financial services.

The Treasury, in exercise of the powers conferred by section 2(2) of that Act, makes the following Order.

A draft of this Order has been laid before and approved by a resolution of each House of Parliament in accordance with paragraph 2(2) of Schedule 2 to that Act.

Annotations to the whole text

Footnotes

f1

SI 2012/1759.

f2

1972 c.68. Section 2(2) was amended by section 27 of the Legislative and |Regulatory Reform Act 2006 (c.51) and by section 3 of, and 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 s. 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).

Contents

  1. 1Citation and commencement
  2. 2Introduction to amendments of the Banking Act
  3. 3Creation of Chapter 1 of Part 1
  4. 4Overview of Part 1
  5. 5Interpretation of Part 1 of the Banking Act 2009
  6. 6Power to address impediments to the resolution of institutions and their groups
  7. 7Creation of Chapter 3 of Part 1
  8. 8Special resolution objectives
  9. 9Code of practice
  10. 10Mandatory write-down, conversion, etc of capital instruments
  11. 11Valuation
  12. 12Exercise of stabilisation powers: general conditions
  13. 13Effect on other group members, financial stability in EU etc
  14. 14Specific conditions in section 8
  15. 15Specific conditions: asset management vehicle
  16. 16Specific conditions: bail-in
  17. 17Specific conditions: temporary public ownership
  18. 18Bridge bank
  19. 19Asset management vehicle
  20. 20Bail-in option
  21. 21Conditions to be met when exercising bail-in option
  22. 22Bail-in administrators
  23. 23Temporary public ownership
  24. 24Effect of a transfer
  25. 25Continuity
  26. 26Share transfer instruments and orders: delisting
  27. 27Share transfer instruments: directors and senior managers
  28. 28Termination rights: share transfer instruments and orders
  29. 29Procedure: share transfer instruments
  30. 30Procedure: share transfer orders
  31. 31Supplemental share transfer instruments
  32. 32Meaning of “resolution company”
  33. 33Asset management vehicles: share transfers
  34. 34Asset management vehicles: reverse share transfer
  35. 35Property transfer instruments
  36. 36Directors
  37. 37Termination rights: property transfer instruments
  38. 38Foreign Property
  39. 39Property transfer instruments: delisting
  40. 40Property transfer instrument: procedure
  41. 41Transfer of property subsequent to resolution instrument
  42. 42Supplementary instruments
  43. 43Onward transfer
  44. 44Bridge bank: reverse property transfer
  45. 45Bail in: reverse property transfer
  46. 46Property transfer instruments: special bail-in provision
  47. 47Restriction of partial transfers
  48. 48Liabilities excluded from scope of special bail-in provision
  49. 49Meaning of “protected deposit”
  50. 50General interpretation of section 48B
  51. 51Business reorganisation plans
  52. 52Functions of bail-in administrators
  53. 53Powers in relation to securities
  54. 54Termination rights, etc: resolution instruments
  55. 55Resolution instruments: directors and senior managers
  56. 56Directions in or under resolution instrument
  57. 57Procedure: resolution instruments
  58. 58Supplemental resolution instruments
  59. 59Onward transfer
  60. 60Reverse transfer
  61. 61Replacement of provisional valuation
  62. 62Termination rights, etc
  63. 63Transfer to resolution company
  64. 64Onward and reverse transfers etc
  65. 65Independent valuer: compensation
  66. 66Resolution fund
  67. 67Third party compensation: mandatory provision
  68. 68Principle of no less favourable treatment
  69. 69Independent valuer: valuation under section 6E or 48X
  70. 70Resolution administrator
  71. 71General continuity obligation: property transfers
  72. 72Special continuity obligations: property transfers
  73. 73Continuity obligations: onward property transfers
  74. 74General continuity obligation: share transfers
  75. 75Contractual variation: share transfers
  76. 76Continuity obligations: onward share transfers
  77. 77Suspension powers
  78. 78Pensions
  79. 79Enforcement
  80. 80Disputes
  81. 81Tax
  82. 82International obligation notice: general
  83. 83International obligation notice: bridge bank
  84. 84Public funds: general
  85. 85Duty of Bank of England to notify Treasury
  86. 86Public funds: resolution company
  87. 87Resolution company: report
  88. 88Accounting information in reports
  89. 89Cases where mandatory write-down, conversion etc applies: banking group companies
  90. 90Groups: transfer to bridge bank etc
  91. 91Groups: transfer to asset management vehicle
  92. 92Groups: bail-in option
  93. 93Sections 81B and 81ZBA: supplemental
  94. 94Section 81BA: supplemental
  95. 95Interpretation: “banking group company” etc
  96. 96Holding companies
  97. 97Information and enforcement
  98. 98Creation of Chapter 5 of Part 1
  99. 99Banks not regulated by PRA
  100. 100Building societies
  101. 101Investment firms
  102. 102Recognised central counterparties
  103. 103Third-country resolution proceedings
  104. 104Grounds for applying
  105. 105Notice to PRA of preliminary steps
  106. 106Notice to regulators and the Bank of England of preliminary steps
  107. 107Power to direct bank administrator
  108. 108Immunity
  109. 109State aid
  110. 110Statutory instruments
  111. 111Index of defined terms in the Banking Act
  112. 112Introduction to amendments of the Financial Services and Markets Act 2000
  113. 113Consolidated supervision
  114. 114Discontinuance and suspension of listing
  115. 115Discontinuance of suspension: procedure
  116. 116Proceedings before Upper Tribunal
  117. 117Assessment: consultation by PRA with FCA
  118. 118Assessment procedure
  119. 119Requests for further information
  120. 120Rules requiring parent undertakings to facilitate resolution
  121. 121Power to impose penalty or issue censure
  122. 122Sanctions: procedure
  123. 123Corporation Tax Act 2009
  124. 124Financial Services Act 2012
  125. 125Amendment of Banking Act 2009 (Restriction of Partial Property Transfers) Order 2009
  126. 126Amendment of Banking Act 2009 (Third Party Compensation Arrangements for Partial Property Transfers) Regulations 2009
  127. 127Amendment of the Banking Act 2009 (Banking Group Companies) Order 2014
  128. 128Review
  129. Signature
  130. Explanatory note