The Bank Recovery and Resolution ( No. 2) Order 2014

Interpretation of Part U.K.

216.—(1) In this Part—

[F1 “applying the public equity support tool” means participating in the recapitalisation of an institution or an entity by providing capital to the institution or entity in exchange for Common Equity Tier 1 instruments, Additional Tier 1 instruments or Tier 2 instruments;]

[F1 “Common Equity Tier 1 instruments”, “Additional Tier 1 instruments” and “Tier 2 instruments” have the meanings given in section 3(1) of the Banking Act 2009;]

“the use of resolution tools, powers and mechanisms” means—

(a)

the exercise by the Bank or the Treasury of a stabilisation power (within the meaning given in section 1(4) of the Banking Act 2009);

(b)

the making by the Bank of a mandatory reduction instrument (within the meaning given in section 6B of that Act M1 ); or

(c)

[F2 the exercise by the Treasury of its powers under section 228 of the Banking Act 2009, subject to the requirements of the capital requirements regulation [F3 and CRR rules], where the Treasury is applying the public equity support tool; and]

“UK-registered company” has the meaning given in section 1158 of the Companies Act 2006 M2 (meaning of UK-registered company).

F4 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) For the purposes of this Part a company is a company under resolution if it is a UK-registered company which is subject to the use of resolution tools, powers and mechanisms.

(4) But such a company is not a company under resolution if—

(a) it has ceased to be subject to the exercise of a stabilisation power or the application of the public equity support tool; and

(b) the results which are to be achieved by an instrument made in respect of the company under Part 1 of the Banking Act 2009 have been achieved.

Textual Amendments

F1 Words in art. 216(1) inserted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 108(2)(a); 2020 c. 1, Sch. 5 para. 1(1)

F2 Words in art. 216(1) substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 108(2)(b); 2020 c. 1, Sch. 5 para. 1(1)

F3 Words in art. 216(1) inserted (1.1.2022) by The Financial Services Act 2021 (Prudential Regulation of Credit Institutions and Investment Firms) (Consequential Amendments and Miscellaneous Provisions) Regulations 2021 (S.I. 2021/1376), regs. 1(3), 19(13)

F4 Art. 216(2) omitted (31.12.2020) by virtue of The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 108(3); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M1 Section 6B was inserted by S.I. 2014/3329.

M2 2006 c. 46.