1. FSMA is amended as follows.
2.—(1) Section 137J(1) (rules about recovery plans: duty to consult) is amended as follows.
(2) In subsection (1) for “each”, in both places where it appears, substitute “a”.
(3) For subsections (2) to (5) substitute—
“(2) “Relevant person” means—
(a)an institution authorised in the UK; or
(b)a qualifying parent undertaking within the meaning given by section 192B(2).
(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.”.
(4) In subsection (6), after the definition of “authorised person”, insert—
““institution” means—
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(3); or
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—
3.—(1) Section 137K(7) (PRA rules about resolution plans: duty to consult) is amended as follows.
(2) In subsection (1)—
(a)for the words “the PRA”—
(i)where they first appear, substitute “either regulator”;
(ii)where they appear after “resolution plan,”, substitute “the regulator”; and
(b)for the word “each”, in both places where it appears, substitute “a”.
(3) In subsections (1) and (3) for “resolution plan” substitute “resolution pack”.
(4) For subsection (2) substitute—
“(2) “Relevant person” has the same meaning as in section 137J(2).”.
(5) After subsection (6) insert—
“(7) In this section “authorised person”, in relation to the PRA, means PRA-authorised person.”.
(6) Accordingly, for the heading substitute “Rules about resolution packs: duty to consult”.
4. Section 137M(8) (special provision relating to adequacy of resolution plans) is repealed.
5.—(1) Section 137N(9) (recovery plans and resolution plans: restriction on duty of confidence) is amended as follows.
(2) For the words “resolution plan”, wherever they appear, substitute “resolution pack”.
(3) In subsection (2) after “authorised person” insert “or a qualifying parent undertaking”.
(4) In subsection (3)(a) and (b) for “that plan” substitute “that plan or pack”.
(5) In subsection (5) after the definition of “authorised person” insert—
““qualifying parent undertaking” means—
a qualifying parent undertaking within the meaning given by section 192B; or
an undertaking which—
is a parent undertaking of an institution (within the meaning given in section 137J(6)(10)) authorised in another EEA State; and
would be a qualifying parent undertaking within the meaning given by section 192B if the institution were a qualifying authorised person within the meaning given by section 192A(1)(11).”.
(6) Accordingly, in the heading for “resolution plans” substitute “resolution packs”.
Section 137J was substituted by the Financial Services Act 2012, section 24(1).
Section 192B was inserted by the Financial Services Act 2012, section 27. For Condition C (a parent undertaking must be a financial institution of a prescribed kind (section 192B(4)) see S.I. 2013/165.
OJ No. L 173, 12.6.2014, p. 190.
Section 2 was amended by the Financial Services Act 2012, sections 101(1) and (3) and 102(1) and (3) and Schedule 17, paragraph 3, and by S.I. 2011/2832.
Section 258A was inserted by the Financial Services Act 2012, section 101(1) and (7). See S.I. 2014/1832, which was made under subsection (2)(b). No other order has been made under that subsection.
Section 137K was substituted by the Financial Services Act 2012, section 24(1).
Section 137M was substituted by the Financial Services Act 2012, section 24(1).
Section 137N was substituted by the Financial Services Act 2012, section 24(1).
Subsection (6) of section 137J is amended by paragraph 2(4) of this Schedule.
Section 192A was inserted by the Financial Services Act 2012, section 27.