- Latest available (Revised)
- Point in Time (28/12/2020)
- Original (As made)
Version Superseded: 31/12/2020
Point in time view as at 28/12/2020.
There are currently no known outstanding effects for the The Bank Recovery and Resolution (No. 2) Order 2014, CHAPTER 3.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
195. This Chapter applies where a third-country institution M1 or third-country parent undertaking has—
(a)set up a Union subsidiary [F1or a Union parent undertaking] in the United Kingdom and at least one other EEA State; or
(b)established significant branches in the United Kingdom and at least one other EEA State.
Textual Amendments
F1Words in art. 195(a) inserted (28.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 56
Marginal Citations
M1For the meaning of “third-country institution”, “third-country parent undertaking” and “Union subsidiary” see the recovery and resolution directive, Article 2.1, points (86), (87) and (84).
196.—(1) Subject to article 198, the Bank acting jointly with the resolution authorities established in other EEA States in which—
(a)a Union subsidiary [F2or a Union parent undertaking] has been set up; or
(b)a significant branch is situated,
must establish a European resolution college in accordance with Article 89 of the recovery and resolution directive (European resolution colleges).
(2) The Bank must co-operate closely with other members of the European resolution college in order to facilitate the performance in relation to the Union subsidiaries [F3and the Union parent undertaking] and, so far as relevant, of the significant branches, of functions and tasks equivalent to the functions and tasks which must be performed in relation to a relevant group in accordance with Article 88 of the recovery and resolution directive (resolution colleges).
[F4(3) Paragraph (4) applies where—
(a)there is only one Union parent undertaking and it—
(i)is established in the United Kingdom; and
(ii)holds all of the Union subsidiaries of a third-country institution or third-country parent undertaking; or
(b)a Union parent undertaking or a Union subsidiary—
(i)is established in the United Kingdom; and
(ii)holds the highest value of total balance sheet assets in the relevant group.]
(4) The Bank must chair meetings of the European resolution college and perform the other functions of a chair of the college.
Textual Amendments
F2Words in art. 196(1)(a) inserted (28.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 57(a)
F3Words in art. 196(2) inserted (28.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 57(b)
F4Art. 196(3) substituted (28.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 57(c)
197.—(1) This article applies where a European resolution college facilitates the performance of the task referred to in Article 94 of the recovery and resolution directive (recognition and enforcement of third-country resolution proceedings) of reaching a joint decision on whether to recognise third-country resolution action in respect of a third-country institution or third-country parent undertaking.
(2) This article also applies where the third-country institution or third-country parent undertaking has assets, rights or liabilities which are governed by the law of two or more EEA States (whether or not a Union subsidiary has been set up or a significant branch has been established in those States).
(3) The resolution authority established in each of those EEA States may be a member of the European resolution college even though no Union subsidiary is set up and no significant branch is established in the State concerned.
(4) Where the members of the European resolution college reach a joint decision on the recognition of third-country resolution action, the Bank must ensure that the third-country instrument made under section 89H(2) of the Banking Act 2009 M2 (recognition of third-country resolution actions)—
(a)recognises the action,
(b)refuses to recognise the action, or
(c)recognises part of the action and refuses to recognise the remainder,
as appropriate for securing that it conforms with the joint decision.
(5) Where the members of the European resolution college are unable to reach a joint decision on the recognition of third-country resolution action, the Bank, before making its decision under section 89H(2) of the Banking Act 2009, must give due consideration to—
(a)the interests of the other EEA States whose resolution authorities are members of the college; and
(b)the potential impact of recognising the third-country resolution action on other group entities and on the financial stability of those States and of the third country concerned.
(6) In this article “third-country resolution action” has the meaning given in section 89H(7) of the Banking Act 2009.
Marginal Citations
M2Section 89H was inserted by S.I. 2014/3329.
198.—(1) Article 196(1) does not apply where the Bank and other resolution authorities concerned—
(a)are satisfied that an existing grouping or college of resolution authorities and other persons, including a resolution college established for a relevant group—
(i)could facilitate the performance of the functions and tasks of a European resolution college; and
(ii)would, if used for that purpose, observe in all material respects the same requirements relating to membership, participation, functioning and information exchange as a newly established European resolution college; and
(b)decide that the existing grouping or college is to be used for that purpose.
(2) Where paragraph (1) applies, this Chapter, except article 196(1), applies in relation to the existing grouping or college, where it is used to facilitate the performance of the tasks of a European resolution college, but has effect for that purpose as if each reference to the European resolution college were a reference to the existing grouping or college.
The Whole Instrument you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Instrument you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Instrument without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Instrument without Schedules you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Instrument you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Instrument without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: