C3C2C1C4F1PART 9ARules and Guidance

Annotations:
Amendments (Textual)
F1

Pt. 9A substituted for ss. 138-164 (24.1.2013 for specified purposes, 1.4.2013 in so far as not already in force) by Financial Services Act 2012 (c. 21), ss. 24(1), 122(3) (with Sch. 20); S.I. 2013/113, art. 2(1)(c), Sch. Pt. 3; S.I. 2013/423, art. 3, Sch.

Modifications etc. (not altering text)
C4

Pt. 9A applied (1.7.2021) by Regulation (EU) No. 600/2014, Art. 49A(12) (as inserted by Financial Services Act 2021 (c. 22), s. 49(5), Sch. 10 para. 9; S.I. 2021/739, reg. 3(o))

C4CHAPTER 1Rule-making powers

General rule-making powers of the FCA and the PRA

137JRules about recovery plans: duty to consult

1

Before either regulator prepares a draft of any general rules that require F3a relevant person (or F3a relevant person of a specified description) to prepare a recovery plan, the regulator must consult F5the Treasury.

F41A

The FCA must also consult the Bank of England.

F22

“Relevant person” means—

a

an institution authorised in the UK; or

b

a qualifying parent undertaking within the meaning given by section 192B.

3

A “recovery plan” is a document which provides for measures to be taken—

a

by an institution authorised in the UK which is not part of a group, following a significant deterioration of the financial position of the institution, in order to restore its financial position; or

b

in relation to a group, to achieve the stabilisation of the group as a whole, or of any institution within the group, where the group or institution is in a situation of financial stress, in order to address or remove the causes of the financial stress and restore the financial position of the group or institution.

4

For the purposes of subsection (3)(a) the definition of “group” in section 421 applies with the omission of subsection (1)(e) and (f) of that section.

6

In this section—

  • “authorised person”, in relation to the PRA, means PRA-authorised person;

  • F6“institution” means—

    1. a

      a credit institution, other than an entity mentioned in Article 2.5 of the capital requirements directive; or

    2. b

      F8a designated investment firm as defined in Article 4(1)(2AA) of the capital requirements regulation;

  • “institution authorised in the UK” means F7an authorised person who is—

    1. a

      a bank within the meaning given by section 2 of the Banking Act 2009;

    2. b

      a building society within the meaning given in section 119 of the Building Societies Act 1986; or

    3. c

      an investment firm within the meaning given by section 258A of the Banking Act 2009;

  • “specified” means specified in the rules.