UK Statutory Instrument
2014
United Kingdom
Bank Recovery and Resolution (No. 2) Order 2014
At a glance
Enforced by
What this Act requires
Sections that create concrete duties on businesses or carry penalties. Procedural and definitional sections are folded into the “Browse other sections” expander at the bottom of each group. Click any section title to read the source text on legislation.gov.uk.
Schedules
Browse 76 other Schedules — structural / supplementary
The context for resolution action
Application for the use of the Bank's facilities
Options for applying the resolution tools and exercising the resolution powers
The context for resolution action
Contents of group resolution plan
. . . . . . . . . ....
In this Schedule, “ group resolution ” means—
In this Schedule, “ entity ” means in relation to...
The additional information referred to in article 8(3)(a) is as...
In this Schedule— (a) “ back-to-back transaction ” means a...
The matters referred to in articles 60(2)(a) and 62(3)(a) are—...
Amendments of FSMA
Credit Institutions (Reorganisation and Winding up) Regulations 2004
Financial Services and Markets Act 2000 (Prescribed Financial Institutions) Order 2013
Financial Services and Markets Act 2000 (Qualifying EU Provisions) Order 2013
Capital Requirements Regulations 2013
Recovery plans
Rules about resolution packs: duty to consult
Special provision relating to adequacy of resolution plans
Recovery plans and resolution packs: restriction on duty of confidence
Amendment of the Financial Services (Banking Reform) Act 2013
Financial Markets and Insolvency (Settlement Finality) Regulations 1999
Financial Services and Markets Act 2000 (Disclosure of Confidential Information) Regulations 2001
Financial Collateral Arrangements (No 2) Regulations 2003
In relation to a company under resolution, this Part modifies...
Section 311 (contents of notices of meetings) has effect as...
Part 13 has effect as if the following sections were...
Section 327 (notice required of appointment of proxy etc) has...
Section 330 (notice required of termination of proxy's authority) has...
Part 13 has effect as if section 333A (traded company:...
Section 334 (application to class meetings) has effect as if—...
Section 336 (public companies and traded companies: annual general meeting)...
Section 337 (public companies and traded companies: notice of AGM)...
Part 13 has effect as if the following sections were...
Section 341 (results of poll to be made available on...
Section 145 (effect of provisions of articles as to enjoyment...
Section 352 (application of provisions to class meetings) has effect...
Section 360 (computation of periods of notice etc: clear day...
Section 360A (electronic meetings and voting) has effect as if...
Part 13 has effect as if the following sections were...
In relation to a company under resolution, Part 27 of...
In relation to a company under resolution, this Part modifies...
Section 550 (power of directors to allot shares etc: private...
Section 551 (power of directors to allot shares etc: authorisation...
Part 17 (a company's share capital) has effect as if...
Section 569 (disapplication of pre-emption rights: private company with only...
Section 153 (exercise of rights where shares held on behalf...
Section 570 (disapplication of pre-emption rights: directors acting under general...
Section 571 (disapplication of pre-emption rights by special resolution) has...
Section 586 (public companies: shares must be at least one-quarter...
Section 593 (public company: valuation of non-cash consideration for shares)...
Section 617 (alteration of share capital of limited company) has...
Section 618 (sub-division or consolidation of shares) has effect—
Section 656 (public companies: duty of directors to call meeting...
Section 282 (ordinary resolutions) has effect as if, in subsection...
Section 283 (special resolutions) has effect as if, in subsection...
Section 284 (votes: general rules) has effect as if, in...
Section 303 (members' power to require directors to call general...
Section 307 (notice required of general meeting) has effect as...
Part 13 (resolutions and meetings) has effect as if section...
In this Schedule— (a) “ entity ” means, in relation...
The plan must provide evidence that the management body of...
The plan must include an appropriate framework of indicators established...
The indicators may be of a qualitative or quantitative nature...
The plan must provide details of appropriate arrangements which the...
An entity may— (a) take action under its plan where...
The entity must without delay notify the appropriate regulator of...
A plan must include— (a) a summary of its key...
The plan must provide for measures to be taken by...
In drawing up the plan the entity must not assume...
The plan must include, where applicable, an analysis of the...
The analysis must identify the assets of the entity which...
The plan must include possible measures which could be taken...
The plan must include appropriate conditions and procedures to ensure...
The plan must contemplate a range of scenarios of severe...
Interpretation of Chapter 4
Amended 4 timesRelevant notice from UK group entity: decision by the PRA or FCA
Amended 3 timesDuties of consolidating supervisor where financial support agreed, prohibited or restricted
Amended 2 timesRe-assessment of recovery plans by the PRA or FCA where it is not the consolidating supervisor
Amended 1 timeRequesting the assistance of EBA
Amended 1 timeInterpretation of Chapter 1
Amended 7 timesNotice that institution meets the conditions for early intervention
Amended 3 timesApplication and interpretation of Chapter 2
Amended 7 timesProcedure for early intervention in respect of a UK group entity
Amended 9 timesProcedure for early intervention in respect of a non-UK group entity
Amended 3 timesJoint decisions about early intervention
Amended 3 timesReferences to EBA
Amended 2 timesRequesting the assistance of EBA
Amended 2 timesApplication and interpretation of Chapter 3
Amended 1 timeProcedure for early intervention in respect of a UK group entity
Amended 6 timesJoint decisions about early intervention
Amended 2 timesRequesting the assistance of EBA
Amended 1 timeInterpretation of Chapter 1
Amended 4 timesDuties of the Bank in relation to minimum requirement
Amended 2 timesDetermination of minimum requirement
Amended 11 timesApplication and interpretation of Chapter 2
Amended 11 timesDetermination of minimum consolidated requirement
Amended 15 timesJoint determination
Amended 2 timesReferences to EBA: determination of minimum consolidated requirement
Amended 2 timesReview of minimum consolidated requirement
Amended 2 timesJoint determination of minimum consolidated requirement
Amended 1 timeApplication and interpretation of Chapter 4
Amended 3 timesDuties of the Bank in relation to minimum requirement
Amended 3 timesDetermination of minimum requirement
Amended 5 timesJoint determination of minimum requirements
Amended 1 timeReferences to EBA: determination of minimum requirement
Amended 1 timeReview of minimum requirements
Amended 1 timeMinimum requirement for other group entities set up in the United Kingdom
Amended 4 timesDetermination of minimum requirement
Amended 3 timesMinimum requirement for other group entities set up in the United Kingdom
Amended 1 timeWaiver of application of Chapter 4 ...
Amended 10 timesMeeting minimum requirement through contractual bail-in instruments etc
Amended 3 timesApplication and interpretation of Part
Amended 4 timesDeterminations under section 6A and 81AA of the Banking Act 2009: preliminary steps for UK group entities
Amended 6 timesDetermination that Case 2, 3, 4 or 5 is satisfied
Amended 3 timesJoint determination under Article 59(3)(c) of the recovery and resolution directive in relation to a non-UK group entity
Amended 1 timeInterpretation of Part
Amended 3 timesRequirement to increase or remove limit on share capital
Amended 4 timesLiabilities arising from derivative contracts
Amended 2 timesApplication and interpretation of Chapter 1
Amended 5 timesPurpose of assessment
Amended 3 timesApplication and interpretation of Chapter 2
Amended 5 timesAssessment etc of business reorganisation plan
Amended 1 timeApplication and interpretation of Chapter 3
Amended 6 timesDuty to transmit a copy of business reorganisation plan
Amended 1 timeAssessment of business reorganisation plan
Amended 3 timesPurpose of assessment
Amended 3 timesJoint assessment of plan
Amended 1 timeRevision of plan
Amended 1 timeReferences to EBA
Amended 1 timeRequesting the assistance of EBA
Amended 1 timeInterpretation of Part
Amended 5 timesMatters to be notified by the regulator to the Bank
Amended 2 timesNotification that an undertaking is failing or likely to fail
Amended 6 timesApplication of Chapter 3
Amended 1 timeEstablishment and functioning of a European resolution college
Amended 3 timesInterpretation of Part
Amended 4 timesShadow directorship
Amended 3 timesModified application of legislation on cross-border mergers
Amended 2 timesModified application of the Companies Act 2006 (disapplication of Takeover Rules)
Amended 3 timesModified application of the Companies Act 2006 (disapplication of other requirements)
Amended 4 timesModified application of the Companies Act 2006 (shareholders’ rights)
Amended 4 timesContinuity
Amended 1 timeDuty to co-operate
Amended 1 timeNon-binding co-operation arrangements in line with EBA framework arrangements
Amended 1 timeDuty to inform EBA of imposition of penalties
Amended 1 timeReview
Amended 1 timeBrowse 160 other sections — procedural / definitional / commencement
Citation and commencement
Interpretation
Application of Order
Designation of the Bank as resolution authority
Designation for the purposes of Article 59 of the recovery and resolution directive
Designation of the Treasury as the ministry responsible for exercising the functions of the competent ministry
Recovery planning: preparatory steps and simplified obligations
Resolution planning: preparatory steps and simplified obligations
Consultation with the Financial Policy Committee
Provision of information to EBA
Application and interpretation of Chapter 1
Assessment of plan
Criteria for assessment
Revision of plan
Business changes and relevant measures
Application and interpretation of Chapter 2
Duty to transmit a copy of group recovery plan
Assessment of group recovery plan
Purpose of assessment
Timing of assessment of plan
Joint assessment of plan
Revision of plan
Business changes and relevant measures
Recovery plan for group institution
References to EBA
Requesting the assistance of EBA
Application and interpretation of Chapter 3
Purpose of assessment
Joint assessment of plan
Assessment of recovery plans drawn up on an individual basis
References to EBA
Requesting the assistance of EBA
Review of recovery plan
Review of group recovery plan assessed under Chapter 2
Review of group recovery plan assessed under Chapter 3
Interpretation of Chapter 1
The Bank's duty to draw up resolution plans
Duty to transmit a copy of the resolution plan
Application of Chapter 2
The Bank's duty to draw up group resolution plans
Information to be transmitted for the purpose of drawing up group resolution plans
Joint decision on adoption of group resolution plan
References to EBA
Requesting the assistance of EBA
Duty to transmit a copy of the group resolution plan
Application and interpretation of Chapter 3
Joint decision on adoption of group resolution plan
Failure to reach joint decision: disagreement by the Bank with a joint proposal
Failure to reach joint decision: agreement by the Bank with a joint proposal
Resolution plan for group entity
References to EBA
Requesting the assistance of EBA
Review of resolution plan
Review of group resolution plan drawn up by the Bank
Review of group resolution plan drawn up by another resolution authority
Information required for resolution planning
Notice of matters which could necessitate an amendment of a plan
Records of financial contracts
Application and interpretation of Chapter 1
Assessment of resolvability
Application and interpretation of Chapter 2
Assessment of group resolvability where the PRA or FCA is the consolidating supervisor
Assessment of group resolvability where neither the PRA nor the FCA is the consolidating supervisor
Application and interpretation of Chapter 3
Notice of determination
Effect of notice of determination
Right of appeal
Application and interpretation of Chapter 4
Report on substantive impediments to the resolvability of group entities
Suspension of requirement to draw up or review group resolution plan
Determining remedial measures
Joint decision on impediments to group resolvability and remedial measures
References to EBA
Requesting the assistance of EBA
Application and interpretation of Chapter 5
Report on substantive impediments to the resolvability of group entities
Suspension of requirement to draw up or review group resolution plan
Determining remedial measures
Joint decision on impediments to group resolvability and remedial measures
Failure to reach joint decision: disagreement by the Bank with joint proposals
Failure to reach joint decision: agreement by the Bank with joint proposals
References to EBA
Requesting the assistance of EBA
Application and interpretation of Chapter 1
Review of group financial support agreement and decision on authorisation
Duty to transmit a copy of application
Joint decision with other competent authorities
References to EBA
Requesting the assistance of EBA
Duty to transmit a copy of authorised agreement
Amendment of authorised agreement
Application and interpretation of Chapter 2
Review of group financial support agreement and decision on authorisation
Joint decision with other competent authorities
References to EBA
Requesting the assistance of EBA
Amendment of authorised agreement
Interpretation of Chapter 3
Requirement for approval of authorised agreement
Publication of information concerning group financial support agreements
Revocation of authorised agreement
Obligation to provide annual report
Reciprocal support
Deadline for compliance with measure for early intervention
References to EBA
Review of minimum requirement
Application and interpretation of Chapter 3
Review of minimum consolidated requirement
Application and interpretation of Chapter 5
Duties of the Bank in relation to minimum requirement
Joint determination of minimum requirements
References to EBA: determination of minimum requirement
Review of minimum requirements
Regulator to take alternative measures
Removal of impediments to the conversion of liabilities into shares
Contractual recognition of bail-in: technical standards
Application and interpretation of Part
Assessment of business reorganisation plan
Revision of plan
Assessment of plan where every group entity is set up in the United Kingdom
Assessment of business reorganisation plans drawn up on an individual basis
Application and interpretation of Chapter 4
Purpose of assessment
Joint assessment of plan
Assessment of business reorganisation plans drawn up on an individual basis
References to EBA
Requesting the assistance of EBA
Duty to send copy of share transfer instrument etc to members and creditors of institution
Notifications under articles 182, 183 and 184
Stay of legal proceedings
Remedies on judicial review
Principles for reaching decisions which may have an impact in two or more EEA States
Information exchange
Requirements for group resolution schemes
Application of Chapter 2
Duty to establish a resolution college
Membership of resolution college
Functioning of resolution college
Use of an existing resolution college
Recognition of third-country resolution action
Use of an existing resolution college
Application and interpretation of Chapter 4
Assessment of impact of notified measures
Joint decision on adoption of group resolution scheme
Requesting the assistance of EBA
Application Chapter 5
Bank decision that group subsidiary meets the conditions for resolution
Joint decision on adoption of group resolution scheme
Failure to reach joint decision: disagreement by the Bank with joint proposals
Requesting the assistance of EBA
Application and interpretation of Chapter 6
Bank decision that EEA parent undertaking meets the conditions for resolution
Joint decision on adoption of group resolution scheme
Requesting the assistance of EBA
Application of Chapter 7
Joint decision on adoption of group resolution scheme
Failure to reach joint decision: disagreement by the Bank with joint proposals
Requesting the assistance of EBA
Investment firms to be treated as financial institutions
Amendments of primary and secondary legislation
Enforcement and responsible bodies
The regulators that administer or enforce this legislation.
Prudential Regulation Authority
Part of the Bank of England. Prudentially regulates and supervises around 1,292 banks, building societies, credit unions, insurers, and major investment firms. …
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