The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020

Resolution of UK branches of third-country institutions

24.  In section 89JA (resolution of UK branches of third-country institutions)(1)—

(a) in subsection (8), in substituted section 48B(10)—

(i) after paragraph (e) insert—

“(ea) liabilities with a remaining maturity of less than 7 days owed by the relevant institution to a recognised central counterparty, an EEA central counterparty or a third country central counterparty;”;

(ii) after paragraph (i) insert—

“(j) liabilities owed by the relevant institution to another institution or a banking group company which (in either case)—

(i) is part of the same resolution group as the relevant institution, and

(ii) is not itself a resolution entity,

where the liabilities do not rank below ordinary non-preferential debts under the hierarchy of claims in normal insolvency proceedings.”;

(b) in the same subsection in substituted section 48B(12) for “eligible” in both places it occurs substitute “bail-in”;

(c) in the same subsection in substituted section 48B(13)—

(i) for “an eligible liability” in each place it occurs substitute “a bail-in liability”;

(ii) for “the eligible liabilities” substitute “the bail-in liabilities”.

(1)

Section 81B was inserted by S.I. 2016/1239.