PART 9B

Ring-fencing

Loss-absorbency requirements

Power of Treasury in relation to loss-absorbency requirements
142Y
1
The Treasury may by order make provision about the exercise by either regulator of its functions under this Act, so far as they are (apart from the order) capable of being exercised in relation to a relevant body so as to require the relevant body—
a
to issue any debt instrument, or
b
to ensure that any part of the relevant body's debt consists of debt owed by it in respect of debt instruments, or debt instruments of a particular kind.
2
A “relevant body” is—
a
a ring-fenced body,
b
any other body corporate that has a Part 4A permission relating to the regulated activity of accepting deposits, or
c
a body corporate that is a member of the group of a body falling within paragraph (a) or (b).
3
“
Debt instrument
” means—
a
a bond,
b
any other instrument creating or acknowledging a debt, or
c
an instrument giving rights to acquire a debt instrument.
4
An order under this section may in particular—
a
require the regulator to exercise its functions so as to require relevant bodies to do either or both of the things mentioned in subsection (1);
b
limit the extent to which the regulator may require a relevant body's debt to consist of debt owed in respect of debt instruments or of debt instruments of a kind specified in the order;
c
require the regulator—
i
to make, or not to make, provision by reference to specified matters, or
ii
to have regard, or not to have regard, to specified matters;
d
require the regulator to consult, or obtain the consent of, the Treasury before making rules of a specified description or exercising any other specified function;
e
impose on the regulator in connection with the exercise of a specified function procedural requirements which would not otherwise apply to the exercise of the function;
f
refer to a publication issued by a regulator, another body in the United Kingdom or an international organisation, as the publication has effect from time to time.
5
“
Specified
” means specified in the order.
Pt. 9B inserted (1.3.2014 for the insertion of ss. 142A-142F, 142I, 142W-142Z1 for specified purposes, 21.4.2016 for the insertion of s. 142H, 1.1.2019 in so far as not already in force) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 4(1), 148(5); S.I. 2014/377, art. 2(1)(b), Sch. Pt. 2; S.I. 2016/512, art. 2(a); S.I. 2018/1306, art. 2(d)
Pt. 9B power to apply (with modifications) conferred (1.1.2019) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 7(2)(b), 148(5); S.I. 2018/1306, art. 2(f)