The Bank Recovery and Resolution Order 2014

Sections 81B and 81ZBA: supplemental

93.—(1) Section 81C (section 81B: supplemental)(1) is amended as follows.

(2) In subsection (1)—

(a) omit the “and” at the end of paragraph (a);

(b) after paragraph (a) insert—

“(aa) section 48Z, and”.

(3) After subsection (1) insert—

“(1A) Where section 6B applies to a banking group company by virtue of section 81AA, sections 6B to 6D apply with the following modifications—

(a) references to the bank are to be read as references to the banking group company,

(b) in section 6B, in subsection (8) the reference to section 6A is to be read as a reference to section 81AA and subsection (9) is to be ignored,

(c) in sections 6B and 6C references, which (by virtue of paragraph (a)) are read as references to a UK parent undertaking of a banking group company, include, where the banking group company satisfied section 81D(1)(a) by reference to a bank which is not a UK parent undertaking of the banking group company, a reference to that bank,

(d) for the purposes of section 6D, references to a bank in sections 48L(3), 48O and 48T are to be read as references to the banking group company, and, where the banking group company satisfied section 81D(1)(a) by reference to a bank (“the failing bank”), those references to a bank (except the first reference in section 48T(1)) are also to be read as including a reference to the failing bank.

(1B) Where the Bank of England makes a mandatory reduction instrument in respect of a banking group company, section 6E applies (with any necessary modifications) as if the banking group company were a bank.”.

(4) In subsection (2)—

(a) after “81B” insert “or 81ZBA”, and

(b) for “and 8” substitute “, 8 and 8ZA”.

(5) Accordingly, in the heading for that section after “81B” insert “or 81ZBA”.

(1)

Section 81C was inserted by section 100 of the Financial Services Act 2012 (c.21).