Financial Services and Markets Act 2023

Resolution instruments: effect and supplementary matters U.K.

79 (1) In this Schedule “resolution instrument” means—

(a) a cash call instrument;

(b) a tear-up instrument;

(c) a variation instrument;

(d) a write-down instrument;

(e) an instrument of control.

(2) A resolution instrument must be made in writing.

(3) A resolution instrument in respect of a CCP ceases to have effect on whichever of the following occurs first—

(a) such date as may be specified in the instrument,

(b) the making of a share transfer instrument or a property transfer instrument in relation to the CCP, or

(c) any of the conditions under paragraph 17 ceasing to be met in relation to the CCP.

(4) The Bank may at any time amend a resolution instrument to specify or amend a date for the purposes of sub-paragraph (3)(a).

(5) Before amending a resolution instrument in accordance with sub-paragraph (4) the Bank must consult the Treasury.

(6) Provision made in a resolution instrument takes effect despite any restriction arising by virtue of contract or legislation or in any other way.

(7) A resolution instrument may provide for anything (including legal proceedings) that relates to anything affected by the instrument and is in the process of being done immediately before the instrument takes effect to be continued from the time the instrument takes effect.

(8) A resolution instrument may modify references (express or implied) in an instrument or document.

(9) A resolution instrument may require or permit any person to provide information and assistance to the Bank or another person, for the purposes of or in connection with provision made or to be made in that or another resolution instrument.

(10) A resolution instrument—

(a) may include supplemental, incidental, consequential or transitional provision,

(b) may make provision generally or only for specified purposes, cases or circumstances,

(c) may make different provision for different purposes, cases or circumstances, and

(d) may make provision for exemptions.

(11) A resolution instrument ceasing to have effect does not affect the validity of anything previously done in accordance with it.

Commencement Information

I1 Sch. 11 para. 79 not in force at Royal Assent, see s. 86(3)

I2 Sch. 11 para. 79 in force at 31.12.2023 by S.I. 2023/1382, reg. 8(b)