4. The Bank is designated in accordance with Article 3 of the recovery and resolution directive (designation of authorities responsible for resolution) as the authority empowered to apply the resolution tools and exercise the resolution powers.
5.—(1) The designations in this article are made in accordance with Article 61.2 of the recovery and resolution directive (authorities responsible for determination) for the purpose of any determination required to be made pursuant to Article 59.3 of that directive (requirement to write down or convert capital instruments) in relation to—
(a)an institution which is set up in the United Kingdom and is not part of a group subject to supervision on a consolidated basis in accordance with Article 111 of the capital requirements directive (“UK institution”); or
(b)in the case of a relevant group, a group entity set up in the United Kingdom (“UK group entity”).
(2) The FCA is designated as the authority responsible for a relevant decision in relation to a UK institution or UK group entity which is an FCA-regulated bank or an FCA-regulated investment firm.
(3) The PRA is designated as the authority responsible for a relevant decision in relation to a UK institution or UK group entity which is a credit institution(1) other than an FCA-regulated bank or an FCA-regulated investment firm.
(4) In relation to a UK group entity which is not an institution—
(a)the PRA is designated as the authority responsible for a relevant decision if—
(i)the entity is a PRA-authorised person;
(ii)where the entity is not a UK authorised person, the PRA is the consolidating supervisor; or
(iii)where the entity is not a UK authorised person and neither the PRA nor the FCA is the consolidating supervisor, there is a PRA-authorised person in the relevant group;
(b)the FCA is designated as the authority responsible for a relevant decision if—
(i)the entity is a UK authorised person but not a PRA-authorised person; or
(ii)where the entity is not a UK authorised person, the FCA is the consolidating supervisor; and
(c)the Bank is designated as the authority responsible for a relevant decision if neither the PRA nor the FCA is responsible for the decision under sub-paragraph (a) or (b).
(5) The Bank is designated as the authority responsible for—
(a)a decision that there is no reasonable prospect that any action other than making the determination would, within a reasonable time, prevent the failure of a UK institution or UK group entity; and
(b)making the determination.
(6) In this article—
“FCA-regulated bank” has the meaning given by section 83A(2) of the Banking Act 2009(2);
“FCA-regulated investment firm” has the meaning given by section 89A(3) of that Act(3); and
“relevant decision”, in relation to an institution or group entity, is a decision that the institution or group entity is failing or likely to fail (within the meaning given in Article 32.4 of the recovery and resolution directive).
6. The Treasury are designated in accordance with Article 3.5 of the recovery and resolution directive as the ministry responsible for exercising the functions of the competent ministry(4) under that directive.
For the meaning of “credit institution” see the recovery and resolution directive, Article 2.1, point (2).
Section 83A was inserted by the Financial Services Act 2012, Schedule 17, paragraphs 1 and 28; and was amended by S.I. 2014/3329.
Section 89A was inserted by the Financial Services Act 2012, section 101(1) and (5); and was amended by S.I. 2014/3329.
For the meaning of “competent ministries” see the recovery and resolution directive, Article 2.1, point (22).