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Modifications etc. (not altering text)
C1Pt. 1 restricted (7.1.2010) by Banking Act 2009 (Exclusion of Insurers) Order 2010 (S.I. 2010/35), arts. 1, 2
C2Pt. 1: power to amend conferred (1.3.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 17(3)(f), 148(5); S.I. 2014/377, art. 2(1)(b), Sch. Pt. 2
Textual Amendments
F1Pt. 1 Ch. 1 formed from ss. 1-3 (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 3
(1)The purpose of the special resolution regime for banks is to address the situation where all or part of the business of a bank has encountered, or is likely to encounter, financial difficulties.
(2)The special resolution regime consists of—
(a)the [F2five] stabilisation options,
(b)the bank insolvency procedure (provided by Part 2), and
(c)the bank administration procedure (provided by Part 3).
[F3(3)The [F4five] “stabilisation options” are—
(a)transfer to a private sector purchaser (section 11),
(b)transfer to a bridge bank (section 12),
[F5(ba)transfer to an asset management vehicle (section 12ZA),]
(c)the bail-in option (section 12A), and
(d)transfer to temporary public ownership (section 13).]
(4)Each of the [F6five] stabilisation options is achieved through the exercise of one or more of the “stabilisation powers”, which are—
[F7(za)the resolution instrument powers (sections 12A(2) and 48U to 48W),]
(a)the share transfer powers (sections 15, 16, 26 to 31 and 85), and
(b)the property transfer powers (sections 33[F8, 41A] and 42 to 46).
[F9(c)the third country instrument powers (sections 89H to 89J).]
(5)Each of the following has a role in the operation of the special resolution regime—
(a)the Bank of England,
(b)the Treasury,
[F10(c)the Prudential Regulation Authority, and
(d)the Financial Conduct Authority.]
(6)The Table describes the provisions of this Part.
Sections | Topic |
---|---|
Sections 1 to 3 | Introduction |
[F11Sections 3A and 3B] | [F11Pre-resolution powers] |
Sections 4 to 6 | Objectives and code |
[F11Sections 6A to 6D] | [F11Mandatory write-down, conversion etc of capital instruments] |
[F11Section 6E] | [F11Valuation before mandatory write-down or stabilisation action] |
Sections 7 to 10 | Exercise of powers: general |
Sections 11 to 13 | The stabilisation options |
Sections 14 to 32 | Transfer of securities |
Sections 33 to [F1248A] | Transfer of property |
[F11Sections 48B to [F1348WA]] | [F11Bail-in option] |
[F11Sections 48X and 48Y] | [F11Replacement of provisional valuation] |
[F11Section 48Z] | [F11Termination rights etc] |
Sections 49 to 62 | Compensation |
[F11Section 62A] | [F11Independent valuer] |
[F11Sections 62B to 62E] | [F11Resolution administrator] |
Sections 63 to 75 | Incidental functions |
Sections 76 to [F1481A] | Treasury |
[F15Sections 81B to 83] | [F15Groups] |
[F11Sections 83ZA to 83Z2] | [F11Information and enforcement] |
[F16Section 83A] | [F16Banks not regulated by the PRA] |
Sections 84 to 89 | Building societies, &c. |
[F17Section 89A] | [F17Investment firms] |
F18. . . | F18. . . |
[F11Sections 89H to 89J] | [F11Third-country resolution actions] |
[F19Section 89JA | Resolution of UK branches of third-country institutions] |
Textual Amendments
F2Word in s. 1(2)(a) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 4(2)
F3S. 1(3) substituted (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 12(3); S.I. 2014/3160, art. 2(1)(b)
F4Word in s. 1(3) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 4(3)(a)
F5S. 1(3)(ba) inserted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 4(3)(b)
F6Word in s. 1(4) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 4(4)(a)
F7S. 1(4)(za) inserted (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 12(4)(b); S.I. 2014/3160, art. 2(1)(b)
F8Word in s. 1(4)(b) inserted (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 12(4)(c); S.I. 2014/3160, art. 2(1)(b)
F9S. 1(4)(c) inserted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 4(4)(b)
F10S. 1(5)(c)(d) substituted for s. 1(5)(c) (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 2(2) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F11Words in s. 1(6) inserted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 4(5)
F12Word in s. 1(6) substituted (8.4.2010) by Financial Services Act 2010 (c. 28), s. 26(1)(l), Sch. 2 para. 40
F13Word in s. 1(6) substituted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 3
F14Word in s. 1(6) substituted (1.1.2015) by Financial Services Act 2012 (c. 21), ss. 99(3), 122(3) (with Sch. 20); S.I. 2014/3323, art. 2
F15Words in s 1(6) substituted (1.8.2014) by Financial Services Act 2012 (c. 21), ss. 100(2), 122(3) (with Sch. 20); S.I. 2014/1847, art. 2
F16Words in s. 1(6) inserted (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 2(3) (with Sch. 20); S.I. 2013/423, art. 3, Sch.
F17Words in s 1(6) inserted (1.8.2014) by Financial Services Act 2012 (c. 21), ss. 101(2), 122(3) (with Sch. 20); S.I. 2014/1847, art. 2
F18Words in s. 1(6) omitted (31.12.2023) by virtue of Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 11 para. 162(2); S.I. 2023/1382, reg. 8(b) (with reg. 14)
F19Words in s. 1(6) inserted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 29(2)
Commencement Information
I1S. 1 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 1