Part 1Special Resolution Regime

Chapter 3 Special resolution action

Transfer of securities

31F1Resolution company: reverse share transfer

(1)

This section applies where the Bank of England has made a F2resolution company share transfer instrument in accordance with section 30(2) (“the original instrument”) F3...

(2)

The Bank of England may make one or more F2resolution company reverse share transfer instruments in respect of securities issued by the F2resolution company and held by a F4transferee under the original instrument.

(3)

A F2resolution company reverse share transfer instrument is a share transfer instrument which—

(a)

provides for transfer to the transferor under the original instrument;

(b)

makes other provision for the purposes of, or in connection with, the transfer of securities which are, could be or could have been transferred under paragraph (a).

F5(3A)

The Bank of England must not make a F2resolution company reverse share transfer instrument unless—

(a)

the transferee under the original instrument is—

(i)

a company wholly owned by the Bank of England,

(ii)

a company wholly owned by the Treasury, or

(iii)

a nominee of the Treasury, or

(b)

the F2resolution company reverse share transfer instrument is made with the written consent of the transferee under the original instrument.

(4)

Sections 7, 8 and 51 do not apply to a F2resolution company reverse share transfer instrument (but it is to be treated in the same way as any other share transfer instrument for all other purposes including for the purposes of the application of a power under this Part).

(5)

Before making a F2resolution company reverse share transfer instrument the Bank of England must consult—

F6(a)

the PRA,

(aa)

the FCA, and

(b)

the Treasury.

(6)

Section 26 applies where the Bank of England has made a F2resolution company reverse share transfer instrument.