[F1PART 9AU.K.Rules and Guidance

Textual Amendments

F1Pt. 9A substituted for ss. 138-164 (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), ss. 24(1), 122(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

CHAPTER 1U.K.Rule-making powers

General rule-making powers of the FCA and the PRAU.K.

137JRules about recovery plans: duty to consultU.K.

(1)Before either regulator prepares a draft of any general rules that require [F2a] relevant person (or [F2a] relevant person of a specified description) to prepare a recovery plan, the regulator must consult—

(a)the Treasury, and

(b)the Bank of England.

[F3(2)“Relevant person” means—

(a)an institution authorised in the UK; or

(b)a qualifying parent undertaking within the meaning given by section 192B.

(3)A “recovery plan” is a document which provides for measures to be taken—

(a)by an institution authorised in the UK which is not part of a group, following a significant deterioration of the financial position of the institution, in order to restore its financial position; or

(b)in relation to a group, to achieve the stabilisation of the group as a whole, or of any institution within the group, where the group or institution is in a situation of financial stress, in order to address or remove the causes of the financial stress and restore the financial position of the group or institution.

(4)For the purposes of subsection (3)(a) the definition of “group” in section 421 applies with the omission of subsection (1)(e) and (f) of that section.]

(6)In this section—

  • “authorised person”, in relation to the PRA, means PRA-authorised person;

  • [F4“institution” means—

    (a)

    a credit institution within the meaning given by Article 2.1(2) of Directive 2014/59/EU of the European Parliament and of the Council of 15th May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms; or

    (b)

    an investment firm within the meaning given by Article 2.1(3) of that directive;

  • “institution authorised in the UK” means an institution which is an authorised person and—

    (a)

    a bank within the meaning given by section 2 of the Banking Act 2009;

    (b)

    a building society within the meaning given in section 119 of the Building Societies Act 1986; or

    (c)

    an investment firm within the meaning given by section 258A of the Banking Act 2009;]

  • “specified” means specified in the rules.]

Textual Amendments

F3S. 137J(2)-(4) substituted for s. 137J(2)-(5) (10.1.2015) by The Bank Recovery and Resolution (No. 2) Order 2014 (S.I. 2014/3348), art. 1(2), Sch. 3 para. 2(3)