The Bank Recovery and Resolution Order 2016

Termination rights etc

15.—(1) Section 48Z (termination rights etc)(1) is amended as follows.

(2) In subsection (1), in the definition of “crisis prevention measure”—

(a) omit the “or” at the end of paragraph (c);

(b) at the end of paragraph (d), insert—

“, or

(e) the appointment by the PRA or the FCA of a person to act as a temporary manager under section 71C of the Financial Services and Markets Act 2000(2);”.

(3) In subsection (5), for “Subsection” substitute “Subject to subsection (6A), subsection”.

(4) After subsection (6) insert—

“(6A) A Part 1 instrument or share transfer order may provide for subsection (6)—

(a) not to apply in relation to a contract or other agreement, or

(b) to apply in relation to a contract or other agreement only to the extent specified by the Bank of England in the instrument or by the Treasury in the order.

(6B) Provision may be made under subsection (6A) only if the Bank of England (in the case of a Part 1 instrument) or the Treasury (in the case of a share transfer order) consider that such provision would advance one or more of the special resolution objectives.”.

(1)

Section 48Z was inserted by S.I. 2014/3329.

(2)

Section 71C is inserted into the Financial Services and Markets Act 2000 (c.8) by article 31 of this Order.