1OverviewU.K.
(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 [F1five] stabilisation options,
(b)the bank insolvency procedure (provided by Part 2), and
(c)the bank administration procedure (provided by Part 3).
[F2(3)The [F3five] “stabilisation options” are—
(a)transfer to a private sector purchaser (section 11),
(b)transfer to a bridge bank (section 12),
[F4(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 [F5five] stabilisation options is achieved through the exercise of one or more of the “stabilisation powers”, which are—
[F6(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[F7, 41A] and 42 to 46).
[F8(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,
[F9(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 |
| [F10Sections 3A and 3B] | [F10Pre-resolution powers] |
| Sections 4 to 6 | Objectives and code |
| [F10Sections 6A to 6D] | [F10Mandatory write-down, conversion etc of capital instruments] |
| [F10Section 6E] | [F10Valuation 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 [F1148A] | Transfer of property |
| [F10Sections 48B to [F1248WA]] | [F10Bail-in option] |
| [F10Sections 48X and 48Y] | [F10Replacement of provisional valuation] |
| [F10Section 48Z] | [F10Termination rights etc] |
| Sections 49 to 62 | Compensation |
| [F10Section 62A] | [F10Independent valuer] |
| [F10Sections 62B to 62E] | [F10Resolution administrator] |
| Sections 63 to 75 | Incidental functions |
| Sections 76 to [F1381A] | Treasury |
| [F14Sections 81B to 83] | [F14Groups] |
| [F10Sections 83ZA to 83Z2] | [F10Information and enforcement] |
| [F15Section 83A] | [F15Banks not regulated by the PRA] |
| Sections 84 to 89 | Building societies, &c. |
| [F16Section 89A] | [F16Investment firms] |
| F17. . . | F17. . . |
| [F10Sections 89H to 89J] | [F10Third-country resolution actions] |
| [F18Section 89JA | Resolution of UK branches of third-country institutions] |
Textual Amendments
F1Word 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)
F2S. 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)
F3Word 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)
F4S. 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)
F5Word 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)
F6S. 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)
F7Word 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)
F8S. 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)
F9S. 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.
F10Words 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)
F11Word in s. 1(6) substituted (8.4.2010) by Financial Services Act 2010 (c. 28), s. 26(1)(l), Sch. 2 para. 40
F12Word in s. 1(6) substituted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 3
F13Word 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
F14Words 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
F15Words 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.
F16Words 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
F17Words 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)
F18Words 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