The Bank Recovery and Resolution (No. 2) Order 2014

Purpose of assessment U.K.

168.—(1) The purpose of the assessment of the business reorganisation plan is to determine whether the plan meets the criteria for assessment and decide other relevant matters.

(2) The Bank must approve the plan when the Bank and the regulator F1 ... are satisfied that the plan meets the criteria for assessment.

(3) The criteria for assessment are that—

[F2 (a) the plan must include the details specified in section 48H(2) of the Banking Act 2009;]

F3 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(c) the arrangements proposed in the plan would, if implemented, be reasonably likely to restore the long-term viability of the group entities, or parts of the business of the group entities, in respect of which a relevant bail-in power has been exercised and of the whole or part of the relevant group.

[F4 (d) the arrangements proposed in the plan must be based on realistic assumptions as to the economic and financial market conditions under which the group entities will operate;

(e) the plan must take account of the current state of the financial markets and their future prospects, reflecting best-case and worst-case assumptions, including a combination of events allowing the identification of the group entities' main vulnerabilities; and

(f) the assumptions made in the plan must be compared with appropriate sector-wide benchmarks.]

Textual Amendments

F1 Words in art. 168(2) omitted (31.12.2020) by virtue of The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 98(2); 2020 c. 1, Sch. 5 para. 1(1)

F2 Art. 168(3)(a) substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 98(3)(a); 2020 c. 1, Sch. 5 para. 1(1)

F3 Art. 168(3)(b) omitted (31.12.2020) by virtue of The State Aid (Revocations and Amendments) (EU Exit) Regulations 2020 (S.I. 2020/1470), reg. 1(2), Sch. 2 para. 15(3) (with Sch. 3)

F4 Art. 168(3)(d)-(f) inserted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 98(3)(b); 2020 c. 1, Sch. 5 para. 1(1)