PART 4

Collaboration between Treasury and Bank of England, FCA or PRA

Memorandum of understanding: resolution planning and crisis management
65
1
The Treasury (on the one hand) and the Bank of England and the PRA (on the other) must prepare and maintain a memorandum describing in general terms how they intend to comply with section 64 in relation to
a
the sharing of information by the Bank about any proposals to include in a resolution plan or a group resolution plan an option for the exercise of a stabilisation power by the Bank in relation to an institution or group entity;
b
the circumstances mentioned in subsection (2) of that section.
2
For the purposes of subsection (1)(b), The memorandum must, in particular, make provision about—
a
what the Treasury and the Bank regard as a material risk for the purposes of section 58(1);
b
steps to be taken when the Bank has given a public funds notification;
c
the respective roles of the Treasury, the Bank and the PRA, in cases where the Bank has given a public funds notification, in relation to the consideration and assessment of, and taking of, steps to resolve or reduce, threats to the stability of the UK financial system;
d
how the Treasury, the Bank and the PRA will co-operate in fulfilling those roles;
e
the use by the Treasury of their power under section 61;
f
matters connected with the Bank's compliance with a direction under that section;
g
the obtaining and sharing of information.
3
The memorandum may make provision about such other matters as may be agreed between the Treasury, the Bank and the PRA, which must be matters that—
a
relate to the stability of the UK financial system or the regulation of financial services, and
b
affect the public interest.
4
The memorandum need not make provision about the relationship between the Bank and the PRA.
5
The Treasury, the Bank of England and the PRA may, with the agreement of a body falling within subsection (6), include in the memorandum provisions relating to co-operation between any of them and that body in relation to matters falling within subsection (3)(a) and (b).
6
The bodies falling within this subsection are—
a
the FCA;
b
the scheme manager of the Financial Services Compensation Scheme;
c
any other body exercising functions that relate to the stability of the UK financial system or the regulation of financial services.
7
The Treasury must—
a
lay before Parliament a copy of the memorandum and any revised memorandum, and
b
publish the memorandum as currently in force in such manner as they think fit.
S. 65 in force at 24.1.2013 for specified purposes by S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3
S. 65 in force at 1.4.2013 in so far as not already in force by S.I. 2013/423, art. 3, Sch.
Words in s. 65 heading inserted (6.7.2016) by Bank of England and Financial Services Act 2016 (c. 14), ss. 36(3)(c), 41(3); S.I. 2016/627, reg. 2(1)(aa)
Words in s. 65(1) inserted (6.7.2016) by Bank of England and Financial Services Act 2016 (c. 14), ss. 36(3)(a), 41(3); S.I. 2016/627, reg. 2(1)(aa)
Words in s. 65(2) inserted (6.7.2016) by Bank of England and Financial Services Act 2016 (c. 14), ss. 36(3)(b), 41(3); S.I. 2016/627, reg. 2(1)(aa)