Part 1 Special Resolution Regime (ss. 1-89M)

AI Summary of Part 1 Special Resolution Regime (ss. 1-89M)

Version status: | Document consolidation status: Updated to reflect all known changes

Version date: 12 February 2009 - onwards

		Future version	Amendment requiring commencement	Draft proposed change
	Chapter 1 Introduction (ss. 1-3)
	1. Overview
	2. Interpretation: "bank"
	3. Interpretation: other expressions
	Chapter 2 Pre-resolution powers of the Bank of England (ss. 3A-3B)
	3A. Removal of impediments to the exercise of stabilisation powers etc
	3B. Safeguards relating to directions under section 3A
	Chapter 3 Special resolution action (ss. 4-83)
	Objectives and code (ss. 4-6)
	4. Special resolution objectives
	5. Code of practice
	6. Code of practice: procedure
	Mandatory write-down, conversion etc of capital instruments (ss. 6A-6D)
	6A. Cases where mandatory write-down, conversion, etc applies
	6B. Mandatory write-down, conversion, etc of capital instruments and liabilities
	6C. Mandatory reduction instruments: implementation of requirements of section 6B
	6D. Mandatory reduction instruments: supplementary matters
	Valuation before mandatory write-down of capital or stabilisation action (s. 6E)
	6E. Pre-resolution valuation
	Exercise of powers: general (ss. 7-10)
	7. General conditions
	7A. Effect on other group members, financial stability in UK etc
	8. Specific Condition: private sector purchaser, bridge bank or asset management vehicle
	8ZA. Specific conditions: asset management vehicle
	8A. Specific condition: bail-in
	9. Specific conditions: temporary public ownership
	10. Banking Liaison Panel
	The stabilisation options (ss. 11-13)
	11. Private sector purchaser
	11A. Private sector purchaser: marketing
	12. Bridge bank
	12ZA. Asset management vehicle
	12A. Bail-in option
	12AA. Bail-in: sequence of write-down and conversion of capital instruments and liabilities
	12B. Bail-in administrators
	13. Temporary public ownership
	Transfer of securities (ss. 14-32)
	14. Interpretation: "securities"
	15. Share transfer instrument
	16. Share transfer order
	17. Effect
	18. Continuity
	19. Conversion and delisting
	20. Directors and senior managers
	21. Ancillary instruments: production, registration, &c.
	22. Termination rights, &c.
	23. Incidental provision
	24. Procedure: instruments
	25. Procedure: orders
	26. Supplemental instruments
	26ZA. Onward share transfer instruments
	26A. Reverse share transfer instruments
	27. Supplemental orders
	28. Onward transfer
	29. Reverse share transfer orders
	29A. Interpretation: "resolution company"
	30. Resolution company: share transfers
	31. Resolution company: reverse share transfer
	32. Interpretation: general
	Transfer of property (ss. 33-48)
	33. Property transfer instrument
	34. Effect
	35. Transferable property
	36. Continuity
	36A. Directors and senior managers
	37. Licences
	38. Termination rights, &c.
	39. Foreign property
	39A. Banks which are clearing houses
	39B. Property transfer instrument: delisting
	40. Incidental provision
	41. Procedure
	41A. Transfer of property subsequent to resolution instrument
	42. Supplemental instruments
	42A. Private sector purchaser: reverse property transfer
	43. Onward transfer
	44. Resolution company: reverse property transfer
	44A. Bail in: reverse property transfer
	44B. Property transfer instruments: special bail-in provision
	44BA. Property transfer instruments and special bail-in provision: supplementary matters
	44C. Report on special bail-in provision
	44D. Bridge bank: supplemental property transfer powers
	44E. Bridge bank: supplemental reverse property transfer powers
	45. Temporary public ownership: property transfer
	46. Temporary public ownership: reverse property transfer
	47. Restriction of partial transfers
	48. Power to protect certain interests
	48A. Creation of liabilities
	Bail-in option (ss. 48B-48W)
	48B. Special bail-in provision
	48C. Meaning of "protected deposit"
	48D. General interpretation of section 48B
	48E. Report on special bail-in provision
	48F. Power to amend definition of "excluded liabilities"
	48G. Priority between creditors
	48H. Business reorganisation plans
	48I. Bail-in administrator: further functions
	48J. Bail-in administrator: supplementary
	48K. Bail-in administrator: money
	48L. Powers in relation to securities
	48M. Termination rights, etc
	48N. Directors and senior managers
	48O. Directions in or under resolution instrument
	48P. Orders for safeguarding certain financial arrangements
	48Q. Continuity
	48R. Execution and registration of instruments etc
	48S. Resolution instruments: general matters
	48T. Procedure
	48U. Supplemental resolution instruments
	48V. Onward transfer
	48W. Reverse transfer
	48WA. Bail-in option: recovery of expenses
	Replacement of provisional valuation (ss. 48X-48Y)
	48X. Replacement of Bank's provisional valuation
	48Y. Consequences of a replacement valuation
	Termination rights etc (s. 48Z)
	48Z. Termination rights etc
	Compensation (ss. 49-62)
	49. Orders
	50. Sale to private sector purchaser
	51. Transfer to temporary public ownership
	52. Transfer to resolution company
	52A. Bail-in option
	53. Onward and reverse transfers etc
	54. Independent valuer: compensation scheme order or bail-in compensation order
	55. Independent valuer: supplemental
	56. Independent valuer: money
	57. Valuation principles
	58. Resolution fund
	59. Third party compensation: discretionary provision
	60. Third party compensation: mandatory provision
	60A. Further mandatory provision: bail-in provision
	60B. Principle of no less favourable treatment
	61. Sources of compensation
	62. Procedure
	Independent valuer: valuation under section 6E or 48X (s. 62A)
	62A. Independent valuer: sections 6E and 48X
	Resolution administrator (ss. 62B-62E)
	62B. Resolution administrator
	62C. Resolution administrator: further functions
	62D. Resolution administrator: supplementary
	62E. Resolution administrator: money
	Incidental functions (ss. 63-75)
	63. General continuity obligation: property transfers
	64. Special continuity obligations: property transfers
	65. Continuity obligations: onward property transfers
	66. General continuity obligation: share transfers
	67. Special continuity obligations: share transfers
	68. Continuity obligations: onward share transfers
	69. Continuity obligations: consideration and terms
	70. Continuity obligations: termination
	70A. Suspension of obligations
	70B. Restriction of security interests
	70C. Suspension of termination rights
	70D. Suspension: general provisions
	71. Pensions
	72. Enforcement
	73. Disputes
	74. Tax
	75. Power to change law
	Treasury (ss. 76-81)
	76. International obligation notice: general
	77. International obligation notice: resolution company
	78. Public funds: general
	78A. Pre-conditions for financial assistance: duty of Bank to give information
	79. Public funds: resolution company
	79A. Private sector purchaser: report
	80. Resolution company: report
	80A. Transfer for bail-in purposes: report
	81. Temporary public ownership: report
	81A. Accounting information to be included in reports under sections 80, 80A(2)(b) and 81
	Groups (ss. 81AA-83)
	81AA. Cases where mandatory write-down, conversion etc applies: banking group companies
	81B. Sale to commercial purchaser and transfer to bridge bank
	81ZZBA. Sale to commercial purchaser and transfer to bridge bank: supplemental powers in relation to certain holding companies
	81ZZBB. Assessment of conditions for section 81ZZBA
	81ZBA. Transfer to asset management vehicle
	81ZBB. Transfer to asset management vehicle: supplemental powers in relation to certain holding companies
	81ZBC. Assessment of conditions for section 81ZBB
	81BA. Bail-in option
	81BB. Bail-in option: supplemental powers in relation to certain holding companies
	81BC. Assessment of conditions for section 81BB
	81C. Sections 81AA to 81ZBB: supplemental
	81CA. Section 81BA and Section 81BB: supplemental
	81D. Interpretation: "banking group company" &c.
	82. Temporary public ownership
	83. Supplemental
	Chapter 4 Information, investigation and enforcement (ss. 83ZA-83Z2)
	Powers to gather information (ss. 83ZA-83ZB)
	83ZA. Information
	83ZB. Reports by skilled persons
	Appointment of investigators (ss. 83ZC-83ZE)
	83ZC. Appointment of persons to carry out general investigations
	83ZD. Appointment of person to carry out investigations in particular cases
	83ZE. Investigations etc in support of foreign resolution authorities
	Conduct of investigations (ss. 83ZF-83ZI)
	83ZF. Investigations: general
	83ZG. Powers of persons appointed under section 83ZC
	83ZH. Powers of persons appointed as a result of section 83ZD
	83ZI. Admissibility of statements made to investigators
	Information and documents: supplemental provision (ss. 83ZJ-83ZP)
	83ZJ. Information and documents: supplemental provision
	83ZK. Protected items
	83ZL. Entry of premises under warrant
	83ZM. Retention of documents obtained under section 83ZL
	83ZN. Offences etc
	83ZO. Prosecution of offences under section 83ZN
	83ZP. Offences under section 83ZN by bodies corporate etc
	Enforcement of relevant requirements (ss. 83ZQ-83Z1)
	83ZQ. Injunctions: prevent failure to comply with relevant requirement
	83ZR. Regulatory sanctions
	83ZS. Determination of sanctions
	83ZT. Procedure: warning notice
	83ZU. Procedure: decision notice
	83ZV. Procedure: general
	83ZW. Appeal
	83ZX. Injunctions: failure to comply with certain section 83ZR sanctions
	83ZY. Publication
	83ZZ. Co-operation
	83Z1. Delegation of enforcement functions
	Enforcement of share transfer orders (s. 83Z2)
	83Z2. Enforcement: share transfer orders
	Chapter 5 Special cases (ss. 83A-89G)
	Banks not regulated by PRA (s. 83A)
	83A. Modifications of Part
	Building societies, &c. (ss. 84-89)
	84. Application of Part 1: general
	84ZA. Bridge bank: share transfer instruments
	84A. Bail-in option: building societies
	84B. Further provision: conversion of building society into company.
	84C. Further provision: transfer of business of building society to company
	84D. Transfer to a bridge bank or bail-in option: modifications of this Act and other legislation
	85. Temporary public ownership
	86. Distribution of assets on dissolution or winding up
	87. Interpretation
	88. Consequential provision
	89. Credit unions
	Investment firms (s. 89A)
	89A. Application to investment firms
	Recognised central counterparties (ss. 89B-89G)
	89B. Application to recognised central counterparties
	89C. Recognised central counterparty rules
	89D. Recognised central counterparty membership
	89E. Recognition of transferee company
	89F. Recognised central counterparty compensation orders
	89G. Interpretation: "Recognised central counterparty" &c.
	Chapter 6 Third-country resolution actions (ss. 89H-89J)
	Third-country resolution actions (ss. 89H-89J)
	89H. Recognition of third-country resolution actions
	89I. Effect of recognition of third-country resolution action by Bank of England
	89J. Third-country instruments: supplementary provision
	Chapter 6A Resolution of UK branches of third-country institutions (s. 89JA.)
	89JA. Resolution of UK branches of third-country institutions
	Chapter 7 General provisions (ss. 89K-89M)
	89K. Insolvency Proceedings
	89L. Restrictions on disclosure of confidential information
	89M. Giving of notices, documents etc under Part 1

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AI Summary of Part 1 Special Resolution Regime (ss. 1-89M)

Part 1 Special Resolution Regime (ss. 1-89M)