Part 1Special Resolution Regime

Chapter 3 Special resolution action

Objectives and code

5Code of practice

F1(1)

The Treasury shall issue a code of practice about—

(a)

the discharge of the duty imposed by section 6B (mandatory write-down, conversion etc of capital instruments), and

(b)

the use of—

(i)

the stabilisation powers,

(ii)

the bank insolvency procedure, and

(iii)

the bank administration procedure.

(2)

The code may, in particular, provide guidance on—

(a)

how the special resolution objectives are to be understood and achieved,

(b)

the choice between different options,

(c)

the information to be provided in the course of a consultation under this Part,

(d)

the giving of advice by one relevant authority to another about whether, when and how the stabilisation powers are to be used,

(e)

how to determine whether Condition 2 in section 7 is met,

(f)

how to determine whether F2tests for the use of the stabilisation powers in sections 8 and 8ZA are satisfied,

(g)

sections 63 and 66, and

(h)

compensation.

F3(2A)

The code must include guidance on the contents of a report, and of any interim report, under section 214F of the Financial Services and Markets Act 2000 (recapitalisation payment: report).

(3)

Sections 12F4, 12ZA and 13 require the inclusion in the code of certain matters about bridge banksF5, asset management vehicles and temporary public ownership.

(4)

The relevant authorities shall have regard to the code.

(5)

For the purpose of this section the relevant authorities are—

(a)

the Treasury,

F6(b)

the PRA,

(ba)

the FCA, and

(c)

the Bank of England.