There are currently no known outstanding effects for the Financial Services and Markets Act 2023, Paragraph 36.
36(1)This paragraph applies to a relevant provision in a write-down instrument.
(2)The Bank must report to the Chancellor of the Exchequer stating the reasons why that provision has been made in the case of the securities or liabilities concerned.
(3)If the provision departs from the insolvency treatment principles, the report must state the reasons why it does so.
(4)The insolvency treatment principles are that where an instrument includes a relevant provision—
(a)the provision made by the instrument must be consistent with treating existing claims in respect of the CCP’s shares and all the liabilities of the CCP in accordance with the priority they would enjoy on a liquidation, and
(b)any creditors who would have equal priority on a liquidation are to bear losses on an equal footing with each other.
(5)A report must comply with any other requirements as to content that may be specified by the Treasury.
(6)A report must be made as soon as reasonably practicable after the making of the instrument to which it relates.
(7)The Chancellor of the Exchequer must lay a copy of each report under sub-paragraph (2) before Parliament.
(8)In this paragraph a “relevant provision” means a provision falling within paragraph 34(2).
Commencement Information
I1Sch. 11 para. 36 not in force at Royal Assent, see s. 86(3)
I2Sch. 11 para. 36 in force at 31.12.2023 by S.I. 2023/1382, reg. 8(b)
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