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

CHAPTER 1 Amendment of Primary Legislation

Amendment of the Banking Act 2009

61.  The Banking Act 2009 is amended in accordance with regulations 62 to 72.

62.  In section 3—

(a) in the definition of “resolution entity”—

(i) at the end of paragraph (a) insert “or”;

(ii) omit paragraph (b);

(iii) in the words after paragraph (c) omit the words ““EU resolution authority” has the meaning given by section 81AA(14),” and “, “EU resolution action” has the meaning given to “resolution action” in Article 2.1(40) of the recovery and resolution directive”;

(b) in the definition of “resolution group” for “third-country” substitute “country or territory other than the United Kingdom”.

63.  In section 48B (special bail-in provision), in subsection (8)(ea), omit “, an EEA central counterparty”.

64.  In section 48D (general interpretation of section 48B), in subsection (1), omit the definitions of “EEA central counterparty” and “normal insolvency proceedings”.

65.  In section 81ZZBA (sale to commercial purchaser and transfer to bridge bank: supplemental powers in relation to certain holding companies), in subsection (3), for “Article 1.1(c) or (d) of the recovery and resolution directive” substitute “subsection (2A) of section 81AA”.

66.  In section 81ZZBB (assessment of conditions for section 81ZZBA)—

(a) in subsection (5)(a), for “central banks” substitute “the Bank of England”;

(b) in subsection (10)—

(i) in paragraph (b), at the end insert “including any retained EU law that was originally made under Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26th June 2013 on prudential requirements for credit institutions and investment firms”;

(ii) in paragraph (c), for the words “gives effect to the capital requirements directive or its implementing measures or any directly applicable regulation” substitute “was relied on by the United Kingdom immediately before IP completion day to implement the capital requirements directive and its implementing measures or any retained EU law originally”.

67.  In section 81ZBB (transfer to asset management vehicle: supplemental powers in relation to certain holding companies)—

(a) in subsection (3) for “Article 1.1(c) or (d) of the recovery and resolution directive” substitute “subsection (2A) of section 81AA”;

(b) in subsection (11)—

(i) omit the “and” at the end of the definition of “financial assistance case”;

(ii) omit the definition of “normal insolvency proceedings”.

68.  In section 81ZBC (assessment of conditions for section 81ZBB)—

(a) in subsection (5)(a), for “central banks” substitute “the Bank of England”;

(b) in subsection (10)—

(i) in paragraph (b), at the end insert “including any retained EU law that was originally made under Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26th June 2013 on prudential requirements for credit institutions and investment firms”;

(ii) in paragraph (c), for the words “gives effect to the capital requirements directive or its implementing measures or any directly applicable regulation” substitute “was relied on by the United Kingdom immediately before IP completion day to implement the capital requirements directive and its implementing measures or any retained EU law originally”.

69.  In section 81BB (bail-in option: supplemental powers in relation to certain holding companies), in subsection (3), for “Article 1.1(c) or (d) of the recovery and resolution directive” substitute “subsection (2A) of section 81AA”.

70.  In section 81BC (assessment of conditions for section 81BB)—

(a) in subsection (5)(a), for “central banks” substitute “the Bank of England”;

(b) in subsection (10)—

(i) in paragraph (b), at the end insert “including any retained EU law that was originally made under Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26th June 2013 on prudential requirements for credit institutions and investment firms”;

(ii) in paragraph (c), for the words “gives effect to the capital requirements directive or its implementing measures or any directly applicable regulation” substitute “was relied on by the United Kingdom immediately before IP completion day to implement the capital requirements directive and its implementing measures or any retained EU law originally”.

71.  In section 89A (application to investment firms), in the Table of modifications in subsection (1), after the entry for section 1, insert—

“Section 3

In subsection (1), in the definition of “normal insolvency proceedings” ignore the reference to the bank insolvency procedure.”

72.  In section 89JA (resolution of UK branches of third-country institutions), in subsection (8), in substituted section 48B(10)(ea), omit “, an EEA central counterparty”.