Part 1

Special Resolution Regime
Chapter 3

Special resolution action

Compensation

Resolution fund
58
1
A resolution fund order must include provision for determining—
a
who will be entitled to a share of the proceeds on disposal of things transferred,
b
the way in which the proceeds will be calculated, and
c
the way in which shares will be calculated.
2
Provision under subsection (1)(b) may, in particular, provide for proceeds to be calculated net of—
a
amounts required for the repayment of loans from public funds or for other payments in respect of public financial assistance;
b
some or all of the administrative or other expenses incurred in connection with the provisions of this Part.
2A
In subsection (2), “
public financial assistance
” includes any amount in respect of which the Bank of England may require a recapitalisation payment under section 214E of the Financial Services and Markets Act 2000.
3
A resolution fund order may include provision for—
a
an independent valuer to make a determination under the order (in which case sections 54(2) to (5), 55 and 56 shall apply);
b
valuation principles to be applied in making a determination (in which case section 57(2) shall apply).
4
A resolution fund order may confer a discretionary function on—
a
a Minister of the Crown,
b
the Treasury,
c
the Bank of England, or
d
any other specified person.
5
A resolution fund order may include provision for the determination of disputes about the application of its provisions (whether by conferring jurisdiction on a court or tribunal or otherwise).
6
A resolution fund order may require the Bank of England in managing a resolution company to aim to maximise the proceeds available for distribution in accordance with the order; and an order which includes a requirement must—
a
specify its extent, and
b
include provision about how the Bank is to comply with it.
7
A resolution fund order may require the Treasury to ensure that a bank in temporary public ownership in accordance with section 13(2) is managed with the aim of maximising the proceeds available for distribution in accordance with the order; and an order which includes a requirement must—
a
specify its extent, and
b
include provision about how the Treasury is to comply with it.
8
A requirement under subsection (6) or (7) is to be complied with only in so far as is compatible with—
a
pursuit of the special resolution objectives, and
b
compliance with the code of practice under section 5.
S. 58 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. 58 in force at 17.2.2009 for specified purposes by S.I. 2009/296, arts. 2, 3, Sch. para. 1
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
Words in s. 58(6) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 66
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. 58(2A) inserted (16.7.2025) by Bank Resolution (Recapitalisation) Act 2025 (c. 15), ss. 7(6), 8(2); S.I. 2025/872, reg. 2(g)