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64.—(1) This Chapter applies where the Bank, after consulting the appropriate regulator and having made an assessment of resolvability in accordance with Chapter 1, determines that there are substantive impediments to the resolvability of an institution (“the impediments”).
(2) In this Chapter—
“determination” means a determination of a kind referred to in paragraph (1);
“pre-resolution powers” means the powers conferred on the Bank by section 3A of the Banking Act 2009 M1 (removal of impediments to the exercise of stabilisation powers etc); and
“relevant proposals” means proposals which—
[F3“response period” means—
in a case [F4where the institution does not, as applicable, meet the requirements referred to in Articles 92a and 494 of the capital requirements regulation or the minimum requirement for own funds and eligible liabilities in accordance with section 3A(4B) of the Banking Act], two weeks beginning with the date on which the institution received the notice; and
in any other case, four months beginning with that date.]
Textual Amendments
F1Words in art. 64(2) inserted (28.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 37(a)(i)
F2Words in art. 64(2) substituted (28.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 37(a)(ii)
F3Words in art. 64(2) inserted (28.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 37(b)
F4Words in art. 64 substituted (31.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(3), 74(3)
Marginal Citations
M1Section 3A was inserted by S.I. 2014/3329.
65.—(1) The Bank must give notice of a determination to—
(a)the institution concerned; [F5and]
(b)the appropriate regulatorF6...
F7(c). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
(2) The notice must—
(a)be in writing;
(b)set out the impediments; and
(c)give reasons for the determination.
Textual Amendments
F5Word in art. 65(1)(a) added (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 39(2)(a); 2020 c. 1, Sch. 5 para. 1(1)
F6Word in art. 65(1)(b) omitted (31.12.2020) by virtue of The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 39(2)(b); 2020 c. 1, Sch. 5 para. 1(1)
66.—(1) A notice under article 65 has the effect of suspending the Bank's duty to draw up a resolution plan for the institution (or review the resolution plan adopted for the institution) until the Bank has approved relevant proposals or exercised pre-resolution powers.
(2) The Bank, after consulting the appropriate regulator, must assess whether the measures set out in relevant proposals would adequately address or effectively remove the impediments.
(3) Where the institution—
(a)fails to submit relevant proposals within the [F8response] period, or
(b)the Bank concludes that the measures set out in relevant proposals would not adequately address or effectively remove the impediments,
the Bank must exercise pre-resolution powers with the object of requiring the institution to take specified measures to address or remove the impediments (“remedial measures”).
(4) In a direction given by the Bank for that purpose the Bank must—
(a)demonstrate how the measures set out in relevant proposals would not adequately address or effectively remove the impediments;
(b)demonstrate how the remedial measures will adequately address or effectively remove the impediments in a manner proportionate to the burden or restriction imposed by the direction; and
(c)require the institution to—
(i)prepare a plan showing how it will comply with the remedial measures; and
(ii)submit that plan within one month beginning on the date of the direction.
(5) [F9Where the consent of the appropriate regulator is not required under section 3A(5) of the Banking Act 2009,] the Bank must consult the appropriate regulator and, where appropriate, the Financial Policy Committee before determining remedial measures.
(6) For the purpose of assessing relevant proposals and determining remedial measures the Bank must take account of—
(a)the threat to financial stability posed by the impediments; and
(b)the effect of the remedial measures on—
(i)the business and financial stability of the institution and its ability to contribute to the economy of the United Kingdom F10...;
(ii)the [F11market in the United Kingdom] for financial services;
(iii)the financial stability of [F12the United Kingdom].
(7) The Bank must give the institution written notice of the remedial measures, including a reasoned account of its decision to require the institution to take those measures.
Textual Amendments
F8Word in art. 66(3)(a) substituted (28.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 38(a)
F9Words in art. 66(5) inserted (28.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 38(b)
F10Words in art. 66(6)(b)(i) omitted (31.12.2020) by virtue of The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 40(2)(a); 2020 c. 1, Sch. 5 para. 1(1)
67.—(1) A person who is aggrieved by—
(a)a determination,
(b)the Bank's conclusion that the measures set out in relevant proposals would not adequately address or effectively remove the impediments, or
(c)the exercise of pre-resolution powers,
may refer the matter to the Tribunal (within the meaning given in section 417(1) of FSMA M2).
(2) Part 9 of FSMA (hearings and appeals) has effect in relation to a reference to the Tribunal under paragraph (1) as if it were a reference of a decision of the Bank under FSMA.
Marginal Citations
M2This definition was inserted by S.I. 2010/22.
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