Part 1

Special Resolution Regime
Chapter 3

Special resolution action

Objectives and code

Code of practice
5
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 tests for the use of the stabilisation powers in sections 8 and 8ZA are satisfied,
g
sections 63 and 66, and
h
compensation.
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 12, 12ZA and 13 require the inclusion in the code of certain matters about bridge banks, 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,
b
the PRA,
ba
the FCA, and
c
the Bank of England.
S. 5 in force at 21.2.2009 in so far as not already in force by S.I. 2009/296, arts. 2, 3, Sch. para. 1
Pt. 1 restricted (7.1.2010) by Banking Act 2009 (Exclusion of Insurers) Order 2010 (S.I. 2010/35), arts. 1, 2
S. 5 in force at 17.2.2009 for specified purposes by S.I. 2009/296, arts. 2, 3, Sch. para. 1
S. 5(5)(b)(ba) substituted for s. 5(5)(b) (1.4.2013) by Financial Services Act 2012 (c. 21), s. 122(3), Sch. 17 para. 6 (with Sch. 20); S.I. 2013/423, art. 3, Sch.
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
S. 5(1) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 9(2)
Words in s. 5(2)(f) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 9(3)
Words in s. 5(3) inserted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 9(4)(a)
Words in s. 5(3) inserted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 9(4)(b)
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. 5(2A) inserted (16.7.2025) by Bank Resolution (Recapitalisation) Act 2025 (c. 15), ss. 5, 8(2); S.I. 2025/872, reg. 2(e)