LegalizeThe Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020
Made: 2nd December 2020
Coming into force in accordance with regulation 1(2) to (4)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART 1 — General
Citation and commencement
1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART 2 — Amendment of Primary Legislation made under the European Communities Act 1972
CHAPTER 1 — Amendment of the Financial Services and Markets Act 2000
Amendment of the Financial Services and Markets Act 2000
2
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CHAPTER 2 — Amendment of the Banking Act 2009
Introduction
3
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interpretation
4
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Removal of impediments to the exercise of stabilisation powers etc.
5
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Mandatory write-down, conversion etc.
6
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
7
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
8
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bail-in: sequence of write-down and conversion of capital instruments and liabilities
9
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Special bail-in provision
10
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
General interpretation of section 48B
11
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Pre-conditions for financial assistance: duty of Bank to give information
12
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Cases where mandatory write-down, conversion etc. applies: banking group companies
13
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Groups: sale to commercial purchaser and transfer to bridge bank: holding companies
14
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Groups: transfer to asset management vehicle: holding companies
15
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Groups: bail-in option: holding companies
16
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
17
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
18
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
19
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
20
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Resolution of banks not regulated by the PRA
21
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Resolution of recognised central counterparties
22
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Recognition of third-country resolution actions
23
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Resolution of UK branches of third-country institutions
24
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Index of defined terms
25
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART 3 — Amendment of Secondary legislation made under the European Communities Act 1972
Amendment of the Financial Markets and Insolvency (Settlement Finality) Regulations 1999
26
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendment of the Credit Institutions (Reorganisation and Winding up) Regulations 2004
27
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendment of the Banking Act 2009 (Restriction of Special Bail-in Provisions, etc) Order 2014
28
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendment of the Bank Recovery and Resolution (No.2) Order 2014
29
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
30
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
31
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
32
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
33
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
34
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
35
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
36
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
38
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
39
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
40
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
41
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
42
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
43
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
44
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
45
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
46
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
47
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
48
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
49
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
50
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
51
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
52
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
53
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
54
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
55
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
56
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
57
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
58
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
59
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
60
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART 4 — Amendment of legislation made under the European Union (Withdrawal) Act 2018
CHAPTER 1 — Amendment of Primary Legislation
Amendment of the Banking Act 2009
61
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
62
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
63
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
64
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
65
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
66
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
67
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
68
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
69
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
70
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
71
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
72
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CHAPTER 2 — Amendment of Secondary Legislation
Amendment of the Credit Institutions (Reorganisation and Winding up) Regulations 2004
73
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendment of the Bank Recovery and Resolution (No.2) Order 2014
74
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CHAPTER 3 — Amendment of EU Exit Legislation
Amendment of the Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018
75
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendment of Schedule 1
76
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendment of Schedule 3
77
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendment of Schedule 4
78
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendment of the Financial Services and Markets Act 2000 (Amendment) (EU Exit) Regulations 2019
79
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CHAPTER 4 — Revocation of technical standards under the Recovery and Resolution Directive
Revocation of technical standards under the Recovery and Resolution Directive
80
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
PART 5 — Other Provision made under the European Communities Act 1972
CHAPTER 1 — Suspension of obligations, interests and rights
Interpretation
81
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
82
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Suspension of obligations prior to exercise of stabilisation powers
83
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Suspension of security interests prior to exercise of stabilisation powers
84
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Suspension of termination rights prior to exercise of stabilisation powers
85
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Suspension prior to exercise of stabilisation powers: procedure
86
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Restriction on subsequent suspension
87
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Groups
88
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Suspension of obligations when Bank is exercising a stabilisation power
89
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Modification of Part for banks not regulated by the PRA
90
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CHAPTER 2 — Power to prohibit distributions
Power to prohibit distributions
91
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CHAPTER 3 — Transfer of losses or capital between members of a group
Transfer of losses or capital between members of a group
92
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CHAPTER 4 — Contractual recognition of bail-in
Interpretation
93
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Requirement to include a contractual term recognising bail-in
94
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Undertakings required to include a contractual term
95
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Contracts for which a contractual term is required
96
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Content of required term
97
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Evidence to demonstrate compliance with regulation 94 obligation
98
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exclusions
99
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Determination of impracticality
100
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Suspension of the regulation 94 obligation
101
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assessment of the determination of impracticability
102
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Determination that term is not impracticable
103
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Assessment of resolvability
104
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercise of power to remove impediments to resolvability
105
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exclusion of liabilities from the minimum requirement for own funds and eligible liabilities
106
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Exercise of resolution powers where contractual term not included
107
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
CHAPTER 5 — Amendments to priority of debts in insolvency
Transitional provision
108
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendment of the Insolvency Act 1986
Introduction
109
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-preferential debts in company voluntary arrangements
110
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-preferential debts in winding up of companies
111
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-preferential debts in bankruptcy proceedings
112
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interpretation
113
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Administration
114
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendment of the Insolvency (Northern Ireland) Order 1989
Introduction
115
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-preferential debts in company voluntary arrangements
116
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-preferential debts in winding up of companies
117
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Non-preferential debts in bankruptcy proceedings
118
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Interpretation
119
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Administration
120
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Further Amendment of Insolvency Legislation
Amendments of the Insolvent Partnerships Order 1994
121
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Amendments of the Insolvent Partnerships Order (Northern Ireland) 1995
122
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Housing Act 1996
123
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Housing and Regeneration Act 2008
124
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Housing (Scotland) Act 2010
125
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Bankruptcy (Scotland) Act 2016
126
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
127
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
128
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Signed
Maggie Throup — James Morris — Two of the Lords Commissioners of Her Majesty's Treasury — 2020-12-02
Explanatory note
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Footnotes
[^f00001]: 1972 c. 68. The European Communities Act 1972 was repealed by section 1 of the European Union (Withdrawal) Act 2018 (c. 16) with effect from exit day, but saved with modifications until IP completion day by section 1A of that Act (as inserted by section 1 of the European Union (Withdrawal Agreement) Act 2020 (c.1)). Section 2(2) of the European Communities Act 1972 was amended by section 27(1) of the Legislative and Regulatory Reform Act 2006 (c. 51) and by section 3(3) of, and Part 1 of the Schedule to, the European Union (Amendment) Act 2008 (c. 7). By virtue of the amendment of section 1(2) by section 1 of the European Economic Area Act 1993 (c. 51), regulations may be made under section 2(2) of the European Communities Act 1972 to implement obligations of the United Kingdom created or arising by or under the Agreement on the European Economic Area signed at Oporto on 2nd May 1992 (Cm 2073) and the Protocol adjusting that Agreement signed at Brussels on 17th March 1993 (Cm 2183). Paragraph 1A was inserted into Schedule 2 by section 28 of the Legislative and Regulatory Reform Act 2006.
[^f00002]: 2018 c.16.
[^f00003]: S.I. 2012/1759 section 4.
[^f00004]: 2000 c.8.
[^f00005]: Section 137R was amended by S.I. 2017/701, S.I. 2018/546 and S.I. 2015/910; there are other amendments but none is relevant.
[^f00006]: 2009 c.1.
[^f00007]: Section 6B was inserted by S.I. 2014/3329.
[^f00008]: Section 6C was inserted by S.I. 2014/3329.
[^f00009]: Section 12AA was inserted by S.I. 2014/3329.
[^f00010]: Section 48B was inserted by S.I. 2014/3329.
[^f00011]: Section 48D was inserted by paragraph 4 of Schedule 2 of the Financial Services (Banking Reform) Act 2013 (c. 33).
[^f00012]: Section 81AA was inserted by S.I. 2014/3329.
[^f00013]: Section 81C was inserted by S.I. 2014/3329.
Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.