Banking Act 2009

[^key-2715b1174307eace5a5bb0c41fe5e577]: S. 206A(1)(b) and word inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 37(3)(c)

[^key-faaf0012765b15a4ed5ea502bb47c76d]: Words in s. 206A(1) renumbered as s. 206(1)(a) (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 37(3)(b)

[^key-3c05c8c114d9daf94a4d8520682d5735]: Words in s. 206A(4)(b) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 37(7)

[^key-5704faa4435201ca62ed2e7a0ff9faec]: Words in s. 206A(5) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 37(8)

[^key-0b55f58b84bc60ff33ac24a4c3339378]: S. 195(1)(c)(d) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 23(3)

[^key-ff4ab3aff0702d01c8afb4c552f17241]: Word in s. 195(1)(a) omitted (29.8.2023) by virtue of Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 23(2)

[^key-246f2feca25553227c2c76bd114e59e1]: Words in s. 195(2)(a) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 23(4)

[^key-b444687f278150089e20f49a97d94cc3]: Words in s. 195(2)(b) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 23(5)

[^key-9f8e65f5324ec6606be3f1c805cc9abb]: Words in s. 205(1) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 35(2)

[^key-0b653f5330ae0c3d2683663aac0829ab]: Words in s. 205(1A) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 35(5)

[^key-7cfe8ccc44824f7dd500d13111f8b85c]: Words in s. 205(1)(a) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 35(3)

[^key-1e21c41aaec9ee983f979af29e5ef718]: Words in s. 205(1)(b) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 35(4)

[^key-804d8331e85d09d159e99561adcaf3f7]: Words in s. 206(1) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 36(2)(a)

[^key-451056f8c6aa26ad73fbb97f117fb3b4]: Words in s. 206(1) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 36(2)(b)

[^key-1446c4b4f15a5229b6c6c0004bf062a9]: Words in s. 206(2) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 36(3)(a)

[^key-c0f256a8031796ece7f6ec0825e0a518]: Words in s. 206(2) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 36(3)(b)

[^key-20353519f283844e8fb38737efdaee69]: Words in s. 7A(1) substituted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 75(2)(a), 86(3); S.I. 2023/779, reg. 4(ww)

[^key-8415378b4b7d706125dbe95c6a466820]: S. 7A(1A) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 75(2)(b), 86(3); S.I. 2023/779, reg. 4(ww)

[^key-631ee2ade4fc8cbde59a7dcb6d7f0073]: Words in s. 204(1)(a) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 34(2)

[^key-b826f43166f152d644aa7f390920ce70]: Words in s. 204(1A) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 34(3)(a)

[^key-ed7614d37f43bc192a7e364fe59d161c]: Words in s. 204(1A) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 34(3)(b)

[^key-3c79244874d476ec8f0119044b75fa2d]: Words in s. 204(2) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 34(4)(a)

[^key-e0306c7e32a4ddefcd14f3cceeb54e9b]: Words in s. 204(2) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 34(4)(b)

[^key-905c5f8b7c994c0712ed4d104131c4c5]: Word in s. 181 inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 3

[^key-edbd4e3ac28f2e902a3e3cf52819eacb]: Words in s. 89H(7) substituted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 75(4)(a), 86(3); S.I. 2023/779, reg. 4(ww)

[^key-60f7a16fba96849bd5e71ce0f4c47d7d]: Words in s. 89H(7) omitted (29.8.2023) by virtue of Financial Services and Markets Act 2023 (c. 29), ss. 75(4)(b), 86(3); S.I. 2023/779, reg. 4(ww)

[^key-cc3ac155cdb479f4307fa9d9d75aa03e]: Words in s. 190(1)(a) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 17(a)

[^key-c49755085e356c97709e8eda495653e9]: Words in s. 190(1)(a) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 17(b)

[^key-af0767cbbdda2d1c2bae95fa02703a36]: Words in s. 196 inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 24(a)

[^key-656763fa13f3ac245301c5f39a740954]: Words in s. 196 inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 24(b)

[^key-c86716369bb3810bdd922c3759835580]: Words in s. 197(1) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 25(a)

[^key-be607a011266cc2fa6d9bf7d05ccf320]: Words in s. 197(1) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 25(b)

[^key-86abc2d35abfd7db7041b31136629b92]: Words in s. 184(4) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 8

[^key-7710c12a0a83d63c15ab280df293210c]: Words in s. 198(1) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 26(a)

[^key-19d46a217016ce7f8bfb19ea4b01028b]: Words in s. 198(1) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 26(b)

[^key-ac1d7f95ffd1605d4a9875f24562b1c7]: Words in s. 202(2) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 30(a)

[^key-a66e86231840c141f83b3026a830e059]: Words in s. 202(2) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 30(b)

[^key-9f5acd10a3d6531c8e79d2b447a8704b]: Words in s. 244(2)(c) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), ss. 75(6), 86(3); S.I. 2023/779, reg. 4(ww)

[^key-9c6219bc4f1dc1dfc6199669811f89b0]: Words in s. 203(1) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 32(a)

[^key-d73f0c8d4d6ab983d664c4b6cb8d7aea]: Words in s. 203(1) inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 32(b)

[^key-0d30209e3e55eb535823d169ec065df6]: Words in s. 259(3) Table inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(a), Sch. 6 para. 39

[^key-867fa39c71b33cecafe6804613eef304]: Words in s. 259(3) Table inserted (29.8.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(2)(d), Sch. 9 para. 11

[^key-e897d6f8d601e9c6840770143f9f347c]: S. 89B-89G and cross-heading omitted (31.12.2023) by virtue of Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 11 para. 162(6); S.I. 2023/1382, reg. 8(b) (with reg. 14)

[^key-97d109fb80db8c12355a4a6c5fad9886]: Words in s. 1(6) omitted (31.12.2023) by virtue of Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 11 para. 162(2); S.I. 2023/1382, reg. 8(b) (with reg. 14)

[^key-28d851517dde64d039630955ff453b9c]: S. 2(9) omitted (31.12.2023) by virtue of Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 11 para. 162(3); S.I. 2023/1382, reg. 8(b) (with reg. 14)

[^key-249a07e23ee89a07ef0c109e9986fc01]: Words in s. 39A substituted (31.12.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 11 para. 162(4)(a); S.I. 2023/1382, reg. 8(b) (with reg. 14)

[^key-40419c7a500e5bf53996c2fb23dc3b40]: Words in s. 39A substituted (31.12.2023) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 11 para. 162(4)(b); S.I. 2023/1382, reg. 8(b) (with reg. 14)

[^key-2c26347c01aef3a2fdc54690929ccb5e]: S. 75(5)(cb) omitted (31.12.2023) by virtue of Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 11 para. 162(5); S.I. 2023/1382, reg. 8(b) (with reg. 14)

[^key-f26407a3d4a72f65e8677f288047d09a]: Words in s. 259 Table omitted (31.12.2023) by virtue of Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 11 para. 162(7); S.I. 2023/1382, reg. 8(b) (with reg. 14)

[^key-0f91094d2a048226f967f1538d7f6ed6]: Words in s. 261 omitted (31.12.2023) by virtue of Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 11 para. 162(8)(a); S.I. 2023/1382, reg. 8(b) (with reg. 14)

[^key-921b04682734132f87097fbc330365ef]: Words in s. 261 omitted (31.12.2023) by virtue of Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 11 para. 162(8)(b); S.I. 2023/1382, reg. 8(b) (with reg. 14)

[^key-521770f5f22134e133a4f22737b00a8a]: Word in s. 3(1) substituted (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 68(2)(a)

[^key-99f75beca5fe70f7881dbd47c5062583]: Words in s. 3(1) substituted (1.1.2024) by The Financial Services and Markets Act 2023 (Consequential Amendments) Regulations 2023 (S.I. 2023/1410), regs. 1(2), 4

[^key-dd7b7f2231bf0f93012646d204c243a5]: Word in s. 4(4) substituted (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 68(2)(b)

[^key-f2aed4f6f984a21c044a6c7ee4cd2dec]: Word in s. 6E(6) substituted (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 68(2)(c)

[^key-e5600da356d68ccde310bccb72438edc]: Word in s. 6E(10) substituted (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 68(2)(c)

[^key-3f3321de56b4d42ced6962a14eaf3095]: Word in s. 11A(8) substituted (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 68(2)(d)

[^key-ec10624ff737753132eee05076080d96]: Word in s. 81BC(10)(b) substituted (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 68(2)(h)

[^key-76e8bfbf354835f3c8dc4730b4574fbd]: Word in s. 81BC(10)(c) substituted (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 68(2)(h)

[^key-37e316616d893b3800d45bcf757da55c]: Word in s. 62A(2A) substituted (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 68(2)(e)

[^key-9a94ed0a81602226dccccc536db670f2]: Word in s. 81ZBC(10)(b) substituted (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 68(2)(g)

[^key-e06491eaef14bca5f7184e2b0dbe5136]: Word in s. 81ZBC(10)(c) substituted (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 68(2)(g)

[^key-bc2698b674b80fb0b50d8b4c6a8483a2]: Word in s. 81ZZBB(10)(b) substituted (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 68(2)(f)

[^key-48739133d605aa509e877ed070d8677d]: Word in s. 81ZZBB(10)(c) substituted (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 68(2)(f)

[^key-eb0ec49116f8efb1b920dcc6028c1f30]: Word in s. 89JA(4) substituted (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 68(2)(i)

[^key-2e891acf63497a1862aad9c1f7004015]: Words in s. 206Z6(3) substituted (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 68(3)

[^key-a2b385e4ae2d041aba0d716e93b8ae1b]: Word in s. 258A(1) substituted (1.1.2024) by The Retained EU Law (Revocation and Reform) Act 2023 (Consequential Amendment) Regulations 2023 (S.I. 2023/1424), reg. 1(2), Sch. para. 68(2)(j)

[^key-5875f222f856b832927359ab65257353]: Word in s. 3(1) omitted (16.7.2025) by virtue of Bank Resolution (Recapitalisation) Act 2025 (c. 15), ss. 7(2)(a), 8(2); S.I. 2025/872, reg. 2(g)

[^key-bf11d2bfb411e0150f39c6bc046bfe3e]: Words in s. 3(1) inserted (16.7.2025) by Bank Resolution (Recapitalisation) Act 2025 (c. 15), ss. 7(2)(b), 8(2); S.I. 2025/872, reg. 2(g)

[^key-78ef29b167c1ea64e8a56e36d89e34b0]: 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)

[^key-1afd3afbf204483380250c2666e3248d]: Words in s. 12AA(2) inserted (16.7.2025) by Bank Resolution (Recapitalisation) Act 2025 (c. 15), ss. 7(3), 8(2); S.I. 2025/872, reg. 2(g)

[^key-0407988d59e0c34c14e9f13143e738a7]: S. 15(1A) inserted (16.7.2025) by Bank Resolution (Recapitalisation) Act 2025 (c. 15), ss. 7(4), 8(2); S.I. 2025/872, reg. 2(g)

[^key-60324cee7855dc2f49ad005f531b6d3e]: S. 57(3A) inserted (16.7.2025) by Bank Resolution (Recapitalisation) Act 2025 (c. 15), ss. 7(5), 8(2); S.I. 2025/872, reg. 2(g)

[^key-bf82f1df6eaceab2d0165ce19cd69524]: 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)

[^key-907e98b53270ec4d4db4160ffd011172]: S. 78A(4) inserted (16.7.2025) by Bank Resolution (Recapitalisation) Act 2025 (c. 15), ss. 7(7), 8(2); S.I. 2025/872, reg. 2(g)

[^key-1cbb9d2e7adb955dc0dd74ebfef0bd60]: Word in s. 3(1) inserted (1.1.2026) by The Financial Services and Markets Act 2023 (Prudential Regulation of Credit Institutions) (Consequential Amendments) Regulations 2025 (S.I. 2025/1333), regs. 1(2), 2(a)(i)

[^key-d5e4a40c0b938d250715eeb2482a99e6]: Words in s. 3(1) omitted (1.1.2026) by virtue of The Financial Services and Markets Act 2023 (Prudential Regulation of Credit Institutions) (Consequential Amendments) Regulations 2025 (S.I. 2025/1333), regs. 1(2), 2(a)(ii)

[^key-6263c50d1bd579973f52ff80771832cb]: Word in s. 3(1) substituted (1.1.2026) by The Financial Services and Markets Act 2023 (Prudential Regulation of Credit Institutions) (Consequential Amendments) Regulations 2025 (S.I. 2025/1333), regs. 1(2), 2(b)

[^M_F_073a2366-052e-4674-8c9e-ee9615a3ef9c]: Words in s. 48L(3)(d) omitted (30.1.2024 for specified purposes, 19.1.2026 in so far as not already in force) by virtue of The Public Offers and Admissions to Trading Regulations 2024 (S.I. 2024/105), reg. 2(2)(3), Sch. 3 para. 25 (with regs. 48-50); S.I. 2025/1078, reg. 5(b) (with reg. 12)

Status of bank administrator

Overview

Power to direct bank administrator

Fees

Special resolution regime

Fees

Rights in insolvency

Overview

Functions under this Act

Restrictions on disclosure of confidential information

Dissolution

Abolition for cheques

Insolvency Services Account

Status of bank administrator

Money

Information

Additional general powers

Additional general powers

Fees

Fees

Evidence

Scottish partnerships

Payments in error

Banknote regulations

Chair of court

Insolvency Services Account

48A

• (1) The provision that may be made by a property transfer instrument or order in reliance on section 33(1)(b), 42(3)(b), 42A(3)(b), 43(3)(b), 44(4)(c), 44A(3)(b), 44D(3)(b), 44E(3)(b), 45(3)(b) or 46(3)(b) includes provision for the creation of liabilities.

• (2) The provision may be framed by reference to an agreement which has been or is to be entered into, or anything else which has been or is to be done, by any person (including a person other than the person making the instrument or order).

Notice to FSA of preliminary steps

Fees

Notice to PRA of preliminary steps

Status of bank administrator

Northern Ireland

Delegation of functions

206A

• (1) The Treasury may by order make provision applying any provision of this Part to ... service providers—

• (a) in relation to a recognised ... payment system , or

• (b) in relation to a recognised DSA service provider.

• (2) A person is a service provider in relation to a recognised ... payment system if—

• (a) the person provides services that form part of the arrangements constituting the system, and

• (b) the person is specified as a person within paragraph (a) by the Treasury in the recognition order made in respect of the system.

• (2A) A person is a service provider in relation to a recognised DSA service provider if—

• (a) the person provides services to the recognised DSA service provider, and

• (b) the person is specified as a person within paragraph (a) by the Treasury in the recognition order made in respect of the DSA service provider.

• (2B) A payment system that includes arrangements using digital settlement assets is a service provider in relation to a recognised DSA service provider if—

• (a) the system provides services to the recognised DSA service provider, and

• (b) the system is specified as a system within paragraph (a) by the Treasury in the recognition order made in respect of the DSA service provider.

• (3) Telecommunication or information technology services are examples of the kind of services that may fall within subsection (2)(a).

• (3A) In relation to a recognised payment system that includes arrangements using digital settlement assets, subsection (2)(a) includes a person providing services connected with the system. See section 206AA.

• (4) Before specifying persons under subsection (2)(b) or (2A)(b) or systems under subsection (2B)(b), the Treasury must—

• (a) consult the Bank of England , the Payment Systems Regulator , the FCA and the PRA,

• (b) notify the operator of the system or DSA service provider and the persons whom the Treasury proposes to specify, and

• (c) consider any representations made.

• (5) The Treasury may not specify the Bank of England under subsection (2)(b) , (2A)(b) or (2B)(b).

• (6) Before making an order under subsection (1), the Treasury must consult—

• (a) the Bank of England,

• (b) the FCA,

• (ba) the PRA, and

• (c) such other persons as the Treasury consider appropriate.

• (7) An order under subsection (1)—

• (a) may modify any provision of this Part in its application to persons who are service providers in relation to a recognised ... payment system;

• (b) may (but need not) take the form of textual amendment.

• (8) An order under subsection (1)—

• (a) is to be made by statutory instrument, and

• (b) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.

Pretending to be recognised

Recognised central counterparty rules

Rules

Rules

Immunity

Fees

Regulations

Bridge bank: share transfer instruments

Transfer of accounts

Status of bank administrator

Overview

“Banknote”

Power to designate banks as “authorised banks”

Notice to the regulators and the Bank of England of preliminary steps

Functions

Supplemental

Application of Part 1: general

Status of bank administrator

Northern Ireland

Investing in National Loans Fund

Information

Payments in error

Compensation: valuer

“Financial assistance”

Overview

Interpretation: other expressions

26A

• (1) This section applies where the Bank of England has made a share transfer instrument in accordance with section 11(2) (“the original instrument”) or 12(2) providing for the transfer of securities issued by a bank to a person (“the original transferee”).

• (2) The Bank of England may make one or more ... reverse share transfer instruments in respect of securities issued by the bank and held by the original transferee.

• (2A) If the Bank of England makes an onward share transfer instrument in respect of securities transferred by the original instrument, the Bank may make one or more reverse share transfer instruments in respect of securities issued by the bank and held by a transferee under the onward share transfer instrument (“the onward transferee”).

• (3) A ... reverse share transfer instrument is a share transfer instrument which—

• (a) provides for transfer to the transferor under the original instrument (where subsection (2) applies);

• (ab) provides for transfer to the original transferee (where subsection (2A) applies);

• (b) makes other provision for the purposes of, or in connection with, the transfer of securities which are, could be or could have been transferred under paragraph (a) or (ab).

• (4) The Bank of England must not make a ... reverse share transfer instrument under subsection (2) without the written consent of the original transferee.

• (4A) The Bank of England must not make a reverse share transfer instrument under subsection (2A) unless—

• (a) the onward transferee is—

• (i) a company wholly owned by the Bank of England,

• (ii) a company wholly owned by the Treasury, or

• (iii) a nominee of the Bank of England or the Treasury, or

• (b) the reverse share transfer instrument is made with the written consent of the onward transferee.

• (5) Sections 7, 8 and 50 do not apply to a ... reverse share transfer instrument (but it is to be treated in the same way as any other share transfer instrument for all other purposes including for the purposes of the application of a power under this Part).

• (6) Before making a ... reverse share transfer instrument the Bank of England must consult—

• (a) the PRA,

• (b) the FCA, and

• (c) the Treasury.

• (7) Section 26 applies where the Bank of England has made a ... reverse share transfer instrument.

Reverse share transfer orders

42A

• (1) This section applies where the Bank of England has made a property transfer instrument in accordance with section 11(2) (“the original instrument”) providing for the transfer of property, rights or liabilities of a bank to a person (“the original transferee”).

• (2) The Bank of England may make one or more private sector reverse property transfer instruments in respect of property, rights or liabilities of the original transferee.

• (3) A private sector reverse property transfer instrument is a property transfer instrument which—

• (a) provides for transfer to the transferor under the original instrument;

• (b) makes other provision for the purposes of, or in connection with, the transfer of property, rights or liabilities that are, could be or could have been transferred under paragraph (a) (whether the transfer has been or is to be effected by that instrument or otherwise).

• (4) The Bank of England must not make a private sector reverse property transfer instrument without the written consent of the original transferee.

• (5) Sections 7, 8 and 50 do not apply to a private sector reverse property transfer instrument (but it is to be treated in the same way as any other property transfer instrument for all other purposes including for the purposes of the application of a power under this Part).

• (6) Before making a private sector reverse property transfer instrument the Bank of England must consult—

• (a) the PRA,

• (b) the FCA, and

• (c) the Treasury.

• (7) Section 42 applies where the Bank of England has made a private sector reverse property transfer instrument.

Banks not regulated by PRA

83A

• (1) In the application of this Part to an FCA-regulated bank the modifications specified in the Table apply.

• (2) In this section—

• “ FCA-regulated bank ” means a bank which does not carry on any activity which is a PRA-regulated activity for the purposes of the Financial Services and Markets Act 2000;

• “ immediate group ” has the meaning given by section 421ZA of the Financial Services and Markets Act 2000;

• “ PRA-authorised person ” has the meaning given by section 2B(5) of that Act.

Provision	Modification
Section 3	Treat the definition of “normal insolvency proceedings” in subsection (1) as including investment bank special administration established by the Investment Bank Special Administration Regulations 2011 (S.I. 2011/245).
Section 6A	Treat the reference to the PRA in subsections (3)(a) and (7) as references to the FCA.
Section 6C	Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 7	(a) Treat the references to the PRA in subsections (1), (5A), (5C), (5D) and (5F) as references to the FCA.(b) . . .(c) If the bank has as a member of its immediate group a PRA-authorised person the FCA must consult the PRA before determining whether or not Condition 2 is met.(d) Subsections (5G)(a) and (5H)(a) do not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 7A	In subsection (1), the reference to the PRA does not apply unless the bank has as a member of its immediate group a PRA-authorised person
. . .	. . .
. . .	. . .
Section 8ZA	(a) Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.. . .
Section 9	Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
. . .	. . .
Section 24	Ignore subsection (1)(c).
Section 25	Ignore subsection (2)(c).
Section 26	Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 26ZA	Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 26A	Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 27	Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 28	Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 29	Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 30	Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 31	Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 41	Ignore subsection (1)(c).
Section 41A	Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 42	Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 42A	Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 43	Subsection (7)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 44	Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 44A	Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 44D	Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 44E	Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 45	Subsection (8)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 46	Subsection (7)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 48H	Subsection (5)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 48U	Subsection (4)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 48V	Subsection (6)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 48W	Subsection (9)(a) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 63	Treat the reference to insolvency in subsection (1A), as including investment bank special administration, established by the Investment Bank Special Administration Regulations 2011
Section 66	Treat the reference to insolvency in subsection (1ZA), as including investment bank special administration, established by the Investment Bank Special Administration Regulations 2011
Section 81AA	Treat the references to the PRA in subsections (3)(b) and (5)(a) as references to the FCA.
Section 81B	(a) Treat the references to the PRA in subsections (2) and (2A) as references to the FCA. (b) Ignore subsection (6)(b) unless the bank has as a member of its immediate group a PRA-authorised person.
Section 81ZZBA	Treat the reference to the PRA in subsection (4) as a reference to the FCA.
Section 81ZZBB	(a) Treat the references to the PRA in subsections (2) and (6) as references to the FCA.(b) Subsections (7)(b) and (8)(b) do not apply unless the banking group company has as a member of its immediate group a PRA-authorised person.
Section 81ZBA	(a) Treat the references to the PRA in subsections (2)(a) and (2A) as references to the FCA.(b) Ignore subsection (8)(a) unless the bank has as a member of its immediate group a PRA-authorised person.. . .
Section 81ZBB	Treat the reference to the PRA in subsection (4) as a reference to the FCA.
Section 81ZBC	(a) Treat the references to the PRA in subsections (2) and (6) as references to the FCA.(b) Subsections (7)(b) and (8)(b) do not apply unless the banking group company has as a member of its immediate group a PRA-authorised person.
Section 81BA	(a) Treat the references to the PRA in subsections (2)(a) and (2A) as references to the FCA.(b) Subsection (5)(b) does not apply unless the bank has as a member of its immediate group a PRA-authorised person.
Section 81BB	Treat the reference to the PRA in subsection (4) as a reference to the FCA.
Section 81BC	(a) Treat the references to the PRA in subsections (2) and (6) as references to the FCA.(b) Subsections (7)(b) and (8)(b) do not apply unless the banking group company has as a member of its immediate group a PRA-authorised person.
Section 82	(a) Treat the reference to the PRA in subsection (2) as a reference to the FCA.(b) Ignore subsection (5)(a).
. . .	. . .

Application to recognised central counterparties

Dissolution

Disqualification of directors

Interpretation: “the court”

Insolvency Services Account

129A

• (1) In the application of this Part to an FCA-regulated bank the modifications specified in the Table apply.

• (2) In this section—

• “FCA-regulated bank” means a bank which does not carry on any activity which is a PRA-regulated activity for the purposes of the Financial Services and Markets Act 2000;

• “immediate group” has the meaning given by section 421ZA of the Financial Services and Markets Act 2000;

• “PRA-authorised person” has the meaning given by section 2B(5) of that Act.

Status of bank administrator

145A

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

157A

• (1) In the application of this Part to an FCA-regulated bank the modifications specified in the Table apply.

• (2) In this section “FCA-regulated bank” means a bank which does not carry on any activity which is a PRA-regulated activity for the purposes of the Financial Services and Markets Act 2000.

186A

• (1) The Treasury may amend a recognition order.

• (2) Before amending a recognition order the Treasury must—

• (a) consult the Bank of England and the Payment Systems Regulator,

• (aa) in the case of a recognition order in respect of a DSA service provider, consult the FCA,

• (b) notify the operator of the recognised ... payment system or the recognised DSA service provider (as appropriate), and

• (c) consider any representations made.

(See section 206A(4) for the procedure to be followed before amending a recognition order so as to specify a person under section 206A(2)(b) (service providers in relation to recognised payment systems) in the order.)

• (2A) Before amending a recognition order so as to revoke or amend the specification of a person under section 206A(2)(b), the Treasury must also—

• (a) consult the FCA and the PRA,

• (b) notify the specified person, and

• (c) consider any representations made.

• (3) In addition, the Treasury—

• (a) must consult the FCA before amending a recognition order in respect of a payment system or a DSA service provider, where the operator of the system or the provider—

• (i) is, or has applied to become, a recognised investment exchange, or

• (ii) has, or has applied for, a Part 4A permission, and

• (b) if the operator or provider has, or has applied for, a Part 4A permission for the carrying on of a PRA-regulated activity, must also consult the PRA.

• (4) The Treasury must consider any request by the operator of a recognised ... payment system or by a recognised DSA service provider for the amendment of its recognition order or any request by a service provider in relation to such a system or provider, for the amendment or revocation of its specification.

202A

• (1) If, on the application of the Bank of England, the court is satisfied—

• (a) that there is a reasonable likelihood that there will be a compliance failure, or

• (b) that there has been a compliance failure and there is a reasonable likelihood that it will continue or be repeated,

the court may make an order restraining the conduct constituting the failure.

• (2) If, on the application of the Bank of England, the court is satisfied—

• (a) that there has been a compliance failure by the operator of a recognised ... payment system , a recognised DSA service provider, or a service provider in relation to such a system or such a DSA service provider, and

• (b) that there are steps which could be taken for remedying the failure,

the court may make an order requiring the operator , DSA service provider or service provider, and anyone else who appears to have been knowingly concerned in the failure, to take such steps as the court may direct to remedy it.

• (3) If, on the application of the Bank of England, the court is satisfied—

• (a) that there may have been a compliance failure by the operator of a recognised ... payment system , a recognised DSA service provider, or a service provider in relation to such a system or such a DSA service provider, or

• (b) that a person may have been knowingly concerned in a compliance failure,

the court may make an order restraining the operator , DSA service provider, , service provider or person from dealing with any assets which it is satisfied the operator , service provider or person is reasonably likely to deal with.

• (4) The jurisdiction conferred by this section is exercisable—

• (a) in England and Wales and Northern Ireland, by the High Court, and

• (b) in Scotland, by the Court of Session.

• (5) In this section—

• (a) references to an order restraining anything are, in Scotland, to be read as references to an interdict prohibiting that thing,

• (b) references to remedying a failure include mitigating its effect, and

• (c) references to dealing with assets include disposing of them.

203A

• (1) The Bank of England must maintain satisfactory arrangements for—

• (a) recording decisions made in the exercise of its functions under this Part, and

• (b) the safe-keeping of those records which it considers ought to be preserved.

• (2) The duty in subsection (1) does not apply to a decision to issue a notice under section 204(1).

203B

• (1) At least once a year the Bank of England must make a report to the Treasury on—

• (a) the discharge of its functions under this Part,

• (b) the extent to which, in its opinion, in discharging those functions its financial stability objective has been met, and

• (c) such other matters as the Treasury may from time to time direct.

• (2) Subsection (1) does not require the inclusion in the report of any information whose publication would in the opinion of the Bank of England be against the public interest.

• (3) The Treasury must lay before Parliament a copy of each report received by them under this section.

206B

• (1) If it appears to the Treasury that any action proposed to be taken by the Bank of England in exercising its powers under this Part would be incompatible with any international obligations of the United Kingdom, the Treasury may direct the Bank not to take that action.

• (2) If it appears to the Treasury that any action which the Bank of England has power under this Part to take is required for the purpose of implementing any such obligation, the Treasury may direct the Bank to take that action.

• (3) A direction under this section—

• (a) may include such supplemental or incidental requirements as the Treasury consider necessary or expedient, and

• (b) is enforceable on an application by the Treasury, by injunction or, in Scotland, by an order for specific performance under section 45 of the Court of Session Act 1988.

Bail-in option

48B

• (1) “Special bail-in provision”, in relation to a bank, means any of the following (or any combination of the following)—

• (a) provision cancelling a liability owed by the bank;

• (b) provision modifying, or changing the form of, a liability owed by the bank;

• (c) provision that a contract under which the bank has a liability is to have effect as if a specified right had been exercised under it.

• (2) “Special bail-in provision”, in relation to a bank, also includes any associated provision (see subsection (3)) that the Bank of England may think it appropriate to make in consequence of any provision under subsection (1) that—

• (a) is made in the same resolution instrument, or

• (b) has been made in another resolution instrument in respect of the bank.

• (3) “Associated provision” means provision cancelling or modifying a contract under which a banking group company has a liability.

• (4) A power to make special bail-in provision—

• (a) may be exercised only for the purpose of, or in connection with, reducing, deferring or cancelling a liability of the bank;

• (b) may not be exercised so as to affect any excluded liability.

• (5) The following rules apply to the interpretation of subsection (1).

• (1) The reference to cancelling a liability owed by the bank includes a reference to cancelling a contract under which the bank has a liability.

• (2) The reference to modifying a liability owed by the bank includes a reference to modifying the terms (or the effect of the terms) of a contract under which the bank has a liability.

• (3) The reference to changing the form of a liability owed by the bank, includes, for example—

• (a) converting an instrument under which the bank owes a liability from one form or class to another,

• (b) replacing such an instrument with another instrument of a different form or class, ...

• (c) creating a new security (of any form or class) in connection with the modification of such an instrument, or

• (d) converting those liabilities into securities issued by a bridge bank or a UK parent undertaking (within the meaning of section 6C(7)).

• (6) Examples of special bail-in provision include—

• (a) provision that transactions or events of any specified kind have or do not have (directly or indirectly) specified consequences or are to be treated in a specified manner for specified purposes;

• (b) provision discharging persons from further performance of obligations under a contract and dealing with the consequences of persons being so discharged.

• (7) The form and class of the instrument (“the resulting instrument”) into which an instrument is converted, or with which it is replaced, do not matter for the purposes of paragraphs (a) and (b) of rule 3 in subsection (5); for instance, the resulting instrument may (if it is a security) fall within Class 1 or any other Class in section 14.

• (7A) Liabilities of the bank are “excluded liabilities” if they are—

• (a) liabilities listed in subsection (8), or

• (b) liabilities which the Bank of England has excluded under subsection (10) from the application of special bail-in provision.

• (8) The following liabilities of the bank are the excluded liabilities referred to in subsection (7A)(a) —

• (a) liabilities representing protected deposits;

• (b) any liability, so far as it is secured;

• (c) liabilities that the bank has by virtue of holding client assets;

• (d) liabilities with an original maturity of less than 7 days owed by the bank to a credit institution or investment firm;

• (e) liabilities with a remaining maturity of less than 7 days arising from participation in designated settlement systems and owed to such systems or to operators of, or participants in, such systems;

• (ea) liabilities with a remaining maturity of less than 7 days owed by the bank to a recognised central counterparty ... or a third country central counterparty;

• (f) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (g) liabilities owed to an employee or former employee in relation to salary or other remuneration, except —

• (i) variable remuneration that is not regulated by a collective bargaining agreement, and

• (ii) variable remuneration of material risk takers within the meaning of rule 3 of Part 152 (remuneration) of the PRA rulebook (other than persons deemed by virtue of rule 3.2 not to be material risk takers and notified to the PRA in accordance with rule 3.2);

• (h) liabilities owed to a pension scheme, except for liabilities owed in connection with variable remuneration of the kind mentioned in paragraph (g)(i) or (ii),

• (i) liabilities owed to creditors arising from the provision to the bank of goods or services (other than financial services) that are critical to the daily functioning of the bank's operations.

• (j) liabilities owed by the bank to the scheme manager of the FSCS in relation to levies imposed by the scheme manager under section 213(3)(b) of the Financial Services and Markets Act 2000;

• (k) liabilities owed by the bank to another bank or a banking group company which (in either case)—

• (i) is part of the same resolution group as the bank, and

• (ii) is not itself a resolution entity,

where the liabilities do not rank below ordinary non-preferential debts under the hierarchy of claims in normal insolvency proceedings.

• (9) The following special rules apply in cases involving banking group companies—

• (a) a liability is not within subsection (8)(d) if the credit institution or investment firm to which the liability is owed is a banking group company in relation to the bank (see section 81D);

• (b) in subsection (8)(i) the reference to creditors does not include companies which are banking group companies in relation to the bank.

• (10) The Bank of England may, in a resolution instrument, exclude any bail-in liability or class of bail-in liabilities from the application of any special bail-in provision in relation to the bank if, and only if, the Bank of England—

• (a) thinks the exclusion is justified on one or more of the grounds set out in subsection (12), ...

• (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• (11) The power conferred by subsection (10) may be exercised to exclude only part of a bail-in liability, or part of each of the bail-in liabilities of a particular class; and where it is so exercised that part is treated as a bail-in liability excluded under that subsection and the remainder is treated as an a bail-in liability which has not been so excluded.

• (12) The grounds are—

• (a) that it is not reasonably possible to give effect to special bail-in provision in relation to the liability or class within a reasonable time;

• (b) that the exclusion is necessary and proportionate to achieve the continuity of critical functions and core business lines in a manner that maintains the ability of the bank to continue key operations, services and transactions;

• (c) that the exclusion is necessary and proportionate to avoid giving rise to widespread contagion, in particular as regards protected deposits held by natural persons or micro, small and medium-sized enterprises, which would severely disrupt the functioning of financial markets, including financial market infrastructures, in a manner that could cause a serious disturbance to the economy of the United Kingdom;

• (d) that the making of special bail-in provision in relation to the liability would cause a reduction in value such that the losses borne by other creditors would be higher than if the liability were excluded.

• (13) When deciding whether to exclude liabilities under subsection (10) or (11), the Bank of England must give due consideration to—

• (a) the principle that all the liabilities of the bank ought to be treated in accordance with the priority they would enjoy on a liquidation,

• (b) the principle that any creditors who would have equal priority on a liquidation ought to bear losses on an equal footing with each other,

• (c) the level of loss absorbing capacity that would remain in the bank if the liability or liabilities of a class were wholly or partly excluded, and

• (d) the need to maintain adequate resources to deal with the implications for public funds of anything done, in future, in connection with the exercise of one or more of the stabilisation powers.

• (13A) The Treasury may by regulations made by statutory instrument make further provision in connection with the exercise of functions under subsection (10) (including provision about further circumstances in which functions under that subsection may or must be exercised).

• (13B) Regulations under subsection (13A) may—

• (a) amend subsections (12) and (13) by adding any provision;

• (b) amend or revoke Commission Delegated Regulation (EU) 2016/860;

• (c) amend that Regulation by adding, omitting or varying any provision (pending the revocation of the whole Regulation under paragraph (b).

• (13C) A statutory instrument containing regulations under subsection (13A) may not be made unless a draft of the instrument has been laid before and approved by resolution of each House of Parliament.

• (14) For the purposes of subsection (12)—

• “core business lines” means business lines and associated services which represent material sources of revenue, profit or franchise value for the bank or a group which includes the bank (or in the case of an instrument made in relation to a resolution company, of the resolution company);

• “protected deposit” has the meaning given by section 48C, and

• “micro, small and medium-sized enterprises” means micro, small and medium-sized enterprises as defined with regard to the annual turnover criterion referred to in Article 2(1) of the Annex to Commission Recommendation 2003/361/EC.

• (15) For the purposes of the definition of “core business lines”—

• (a) Article 7 of Commission Delegated Regulation (EU) 2016/778 (criteria relating to the determination of core business lines) applies, and

• (b) “group” has the meaning given by section 3(2)(b).

• (16) The Treasury may by regulations made by statutory instrument specify criteria for the determination of the business lines and associated services referred to in the definition of “core business lines”.

• (17) The power conferred by subsection (16) includes—

• (a) power to amend or revoke Article 7 of Commission Delegated Regulation (EU) 2016/778; and

• (b) power to amend or repeal subsection (15)(a).

• (18) A statutory instrument containing regulations under subsection (16) is subject to annulment in pursuance of a resolution of either House of Parliament.

48C

• (1) A deposit is “protected” so far as it is covered by the FSCS.

• (4) In subsection (1) and section 48B(8)(a), “deposit” has the meaning given by article 5(2) of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 (S.I. 2001/544), but ignoring the exclusions in article 6.

48D

• (1) In section 48B—

• “client assets” means assets which the bank has undertaken to hold on trust for, or on behalf of, a client;

• “contract” includes any instrument;

• “credit institution” means any credit institution as defined in Article 4.1(1) of Regulation (EU) No 575/2013 of the European Parliament and of the Council, other than an entity mentioned in Article 2.5(2), (3) or (24) of Directive 2013/36/EU of the European Parliament and of the Council;

• “designated settlement system” means a system which is designated in accordance with the Financial Markets and Insolvency (Settlement Finality) Regulations 1999 (S.I. 1999/2979);

• ...

• “employee” includes the holder of an office;

• ...

• ...

• “pension scheme” includes any arrangement for the payment of pensions, allowances and gratuities;

• “recognised central counterparty” has the meaning given in section 285 of the Financial Services and Markets Act 2000;

• “secured” means secured against property or rights, or otherwise covered by collateral arrangements;

• “third country central counterparty” has the meaning given in section 285 of the Financial Services and Markets Act 2000.

• (2) In subsection (1)—

• “assets” has the same meaning as in section 232(4) (ignoring for these purposes section 232(5A)(b));

• “collateral arrangements” includes arrangements which are title transfer collateral arrangements for the purposes of section 48.

• (2A) The definition of “investment firm” in section 258A applies for the purposes of section 48B but for these purposes—

• (a) any exclusions made under the power conferred by subsection (2)(b) of section 258A are to be ignored; and

• (b) an institution is to be treated as falling within the definition only if it has permission to carry on the investment services and activities in point 3 or 6 of Part 3 of Schedule 2 to the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001.

• (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

48E

• (1) This section applies where the Bank of England makes a resolution instrument containing special bail-in provision (see section 48B).

• (2) The Bank of England must report to the Chancellor of the Exchequer stating the reasons why that provision has been made in the case of the liabilities concerned.

• (3) If the provision departs from the insolvency treatment principles, the report must state the reasons why it does so.

• (4) The insolvency treatment principles are that where an instrument includes special bail-in provision—

• (a) the provision made by the instrument must be consistent with treating all the liabilities of the bank in accordance with the priority they would enjoy on a liquidation, and

• (b) any creditors who would have equal priority on a liquidation are to bear losses on an equal footing with each other.

• (5) A report must comply with any other requirements as to content that may be specified by the Treasury.

• (6) A report must be made as soon as reasonably practicable after the making of the resolution instrument to which it relates.

• (7) The Chancellor of the Exchequer must lay a copy of each report under subsection (2) before Parliament.

48F

• (1) The Treasury may by order amend section 48B(8) by—

• (a) adding to the list of excluded liabilities;

• (b) amending or omitting any paragraph of that subsection, other than paragraphs (a) to (c).

• (2) The Treasury may by order amend section 48C or 48D.

• (3) The powers conferred by subsections (1) and (2) include power to make consequential and transitional provision.

• (4) An order under this section—

• (a) is to be made by statutory instrument, and

• (b) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.

• (5) The Treasury must consult before laying a draft order under this section before Parliament.

48G

• (1) The Treasury may, for the purpose of ensuring that the treatment of liabilities in any instrument that contains special bail-in provision is aligned to an appropriate degree with the treatment of liabilities on an insolvency, by order specify matters or principles to which the Bank of England is to be required to have regard in making any such instrument.

• (2) An order may, for example, specify the insolvency treatment principles (as defined in section 48E(4)) or alternative principles.

• (3) An order may specify the meaning of “insolvency” for one or more purposes of the order.

• (4) An order may amend sections 44C(4) and 48E(4).

• (5) An order—

• (a) is to be made by statutory instrument, and

• (b) may not be made unless a draft has been laid before and approved by resolution of each House of Parliament.

48H

• (1) A resolution instrument may require a resolution administrator, or one or more directors of the bank, to—

• (a) draw up a business reorganisation plan with respect to the bank, ...

• (b) submit it to the Bank of England within the period allowed by (or under) the instrument ; and

• (c) submit to the Bank of England progress reports on the implementation of the plan at such intervals as the instrument may require.

• (2) “Business reorganisation plan” means a plan that includes—

• (a) an assessment of the factors that caused Condition 1 in section 7 to be met in the case of the bank,

• (b) a description of the measures to be adopted with a view to restoring the viability of the bank, and

• (c) a timetable for the implementation of those measures.

• (3) Where a person has submitted a business reorganisation plan to the Bank of England under subsection (1) (or has re-submitted a plan under subsection (4)), the Bank of England—

• (a) must approve the plan if satisfied that the plan is appropriately designed for meeting the objective mentioned in subsection (2)(b);

• (b) must otherwise require the person to amend the plan in a specified manner.

• (4) Where the Bank of England has required a person to amend a business re-organisation plan, the person must re-submit the amended plan within the period allowed by (or under) the resolution instrument.

• (5) Before deciding what action to take under subsection (3) the Bank of England must (for each submission or re-submission of a plan) consult—

• (a) the PRA, and

• (b) the FCA.

• (6) A business reorganisation plan may include recommendations by the person submitting the plan as to the exercise by the Bank of England of any of its powers under this Part in relation to the bank.

• (7) Where a resolution instrument contains provision under subsection (1), the instrument may—

• (a) specify further matters (in addition to those mentioned in subsection (2)) that must be dealt with in the business reorganisation plan;