The Financial Services and Markets Act 2000 (Contribution to Costs of Special Resolution Regime) Regulations 2010

Initial notification

4.—(1) If the scheme manager is to be required by the Treasury to make payments under section 214B(2), the Treasury shall notify the scheme manager (“the initial notification”) as soon as is reasonably practicable after the exercise of the stabilisation power.

(2) The initial notification shall include—

(a) the name and address of the banking institution in respect or in connection with which the stabilisation power has been exercised;

(b) a statement that the Treasury think that the banking institution was, or was likely to have been, or but for the exercise of the stabilisation power, would have become, unable to satisfy claims against it;

(c) details of the stabilisation power exercised, when it was exercised and the identity of the transferee (if any);

(d) the eligible expenses incurred, or an estimate of those expected to be incurred, by the Treasury or any other person other than the scheme manager (“the other person”) and an estimate of any recoveries the Treasury or the other person expect to make in respect of the banking institution;

(e) if—

(i) a payment is required immediately from the scheme manager, a demand for that payment setting out the amount as calculated in accordance with regulation 9, and when and to whom the payment is due, or

(ii) if a payment is not required immediately from the scheme manager, an estimate as to when the scheme manager is likely to be required to make a payment or a date before which a payment will not be required;

(f) the interest rate (“the notified rate”) which applies for the purposes of regulations 10(4), 11(3) or (4), and the accounts kept in accordance with Schedule 1;

(g) information as to—

(i) how the notified rate is to be calculated: whether this is to be a fixed rate, or a floating rate dependent on an underlying rate (and, if so, information as to this underlying rate), and

(ii) the period or successive periods for which the notified rate shall apply;

(h) any specified principles, methods or matters which the scheme manager will be required to apply, use or take into account when making its determinations under section 214D(2); and

(i) any further information that the Treasury consider necessary in respect of the payments to be made.

(3) No change can be made to the notified rate under paragraph (2)(f), or to the basis on which it is calculated, before the end of the period or periods notified.

(4) A failure to include any of the information in paragraph (2) in the initial notification does not render that notification invalid.