Part 1

Special Resolution Regime
Chapter 3

Special resolution action

The stabilisation options

Private sector purchaser: marketing
11A
1
Subject to subsection (4), the Bank of England must make arrangements for marketing—
a
any securities issued by the bank which the Bank intends to transfer by a share transfer instrument under section 11(2)(a), or
b
any property, rights or liabilities of the bank which the Bank intends to transfer by a property transfer instrument under section 11(2)(b).
2
The arrangements under subsection (1) must—
a
be as transparent as possible having regard to the circumstances and the need to maintain financial stability;
b
ensure there is no conflict of interest;
c
take account of the need for the Bank to act quickly to address the situation where a bank is failing or likely to fail;
d
aim at maximising, as far as possible, the sale price for the securities or property, rights or liabilities involved.
3
The arrangements under subsection (1) must not—
a
materially misrepresent the securities or property, rights or liabilities which the Bank intends to transfer;
b
favour or discriminate between potential purchasers or grant an unfair advantage to a potential purchaser.
4
Subsection (1) does not apply if the Bank of England considers that complying with that subsection would undermine one or more of the special resolution objectives.
5
In particular subsection (1) does not apply if the Bank considers that—
a
there is a material threat to financial stability in the United Kingdom
... arising from or aggravated by the failure or likely failure of the bank, and
b
complying with subsection (1) would undermine the effectiveness of the first stabilisation option in addressing that threat or achieving the objective in section 4(4).
7
Any public disclosure of the marketing which may be required under Article 17(1) of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse may be delayed in accordance with Article 17(4) or (5) of that Regulation.
8
The reference in subsection (7) to Regulation (EU) No 596/2014 is to that Regulation as it
forms part of
assimilated
law
.
Pt. 1 restricted (7.1.2010) by Banking Act 2009 (Exclusion of Insurers) Order 2010 (S.I. 2010/35), arts. 1, 2
Pt. 1: power to amend conferred (1.3.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 17(3)(f), 148(5); S.I. 2014/377, art. 2(1)(b), Sch. Pt. 2
Pt. 1 Ch. 3 formed from ss. 4-83 (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 7
S. 11A inserted (16.12.2016) by The Bank Recovery and Resolution Order 2016 (S.I. 2016/1239), arts. 1(2), 8
S. 11A(8) inserted (21.12.2018) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(3), Sch. 1 para. 15(3)
Words in s. 11A(5)(a) 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. 1 para. 15(2); 2020 c. 1, Sch. 5 para. 1(1)
Words in s. 11A(8) substituted (31.12.2020 immediately before IP completion day) by The Securities Financing Transactions, Securitisation and Miscellaneous Amendments (EU Exit) Regulations 2020 (S.I. 2020/1385), regs. 1(4), 39(4)
Word in s. 11A(8) substituted (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 68(2)(d)