The Bank Recovery and Resolution (No. 2) Order 2014 establishes a framework for managing the failure of credit institutions and investment firms in the UK, aligning with the European recovery and resolution directive. It designates the Bank of England as the resolution authority, responsible for implementing resolution tools and powers, while also empowering the Treasury to oversee legal compliance. The Order outlines procedural requirements for developing recovery and resolution plans to ensure financial stability and continuity of critical functions in the event of a crisis.

Furthermore, the Order stipulates the responsibilities of the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA) regarding assessment and approval of recovery plans, and mandates cooperation among relevant authorities across EEA states to efficiently execute resolution strategies. Specific provisions address intra-group financial support and early intervention measures, underpinning proactive management of financial distress within regulated entities.