# Financial Services and Markets Act 2023, Paragraph 26: Consequences of a replacement valuation

Extent: E+W+S+N.I.

(1) Where the independent valuation carried out under paragraph 23(1) produces a higher valuation of the net asset value of the CCP than a provisional valuation carried out under paragraph 22(4), the Bank may—
(a) modify any liability of the CCP which has been reduced, deferred or cancelled by a write-down instrument so as to increase or reinstate that liability, or
(b) instruct a bridge central counterparty to pay additional consideration—
(i) to the CCP for any property, rights or liabilities transferred to the bridge central counterparty by a property transfer instrument, or
(ii) to the previous holders of securities issued by the CCP for any securities transferred to the bridge central counterparty by a share transfer instrument.
(2) The power in sub-paragraph (1)(a)—
(a) may not be exercised so as to increase the value of the liability beyond the value it would have had if the write-down instrument which reduced, cancelled or deferred it had not been made, and
(b) must be exercised by a resolution instrument (whether or not that instrument contains any other provision authorised by this Schedule).

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Source: https://www.legislation.gov.uk/ukpga/2023/29/schedule/11/paragraph/26 (the official version)
Page: https://openlegislation.uk/financial-services-and-markets-act-2023/schedule-11/paragraph-26
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.