Article 5 Exclusion on grounds of impossibility to bail-in under section 48B(12)(a) of the Banking Act 2009F4
United Kingdom
F1The resolution authority may only exclude a liability or class of liabilities from the exercise of the bail-in tool where the obstacles invoked for such exercise do not allow for it to take place within a reasonable time, despite every best effort of the resolution authority.
With regard to paragraph 1, F2the resolution authority shall, in particular, satisfy the following requirements before making a determination as to the exclusion referred to therein:
the obligation of the resolution authority, to provide in the resolution plan, a description of the processes for ensuring availability within an appropriate time frame of the information required for the purposes of valuation pursuant to F3section 6E of the Act;
the obligation of the resolution authority to address any impediments to resolvability of the institution including the circumstances resulting in a potential exclusion which could be foreseen in the resolution planning process when those potential exclusions amount to impediments to resolvability.
Annotations
Textual amendments
- F1
Words in Art. 5(1) substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 5 para. 2(6)(b); 2020 c. 1, Sch. 5 para. 1(1)
- F2
Words in Art. 5(2) substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 5 para. 2(6)(c)(i); 2020 c. 1, Sch. 5 para. 1(1)
- F3
Words in Art. 5(2) substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 5 para. 2(6)(c)(ii); 2020 c. 1, Sch. 5 para. 1(1)
- F4
Words in Art. 5 heading substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 5 para. 2(6)(a); 2020 c. 1, Sch. 5 para. 1(1)