1OverviewU.K.
(1)The purpose of the special resolution regime for banks is to address the situation where all or part of the business of a bank has encountered, or is likely to encounter, financial difficulties.
(2)The special resolution regime consists of—
(a)the three stabilisation options,
(b)the bank insolvency procedure (provided by Part 2), and
(c)the bank administration procedure (provided by Part 3).
(3)The three “stabilisation options” are—
(a)transfer to a private sector purchaser (section 11),
(b)transfer to a bridge bank (section 12), and
(c)transfer to temporary public ownership (section 13).
(4)Each of the three stabilisation options is achieved through the exercise of one or more of the “stabilisation powers”, which are—
(a)the share transfer powers (sections 15, 16, 26 to 31 and 85), and
(b)the property transfer powers (sections 33 and 42 to 46).
(5)Each of the following has a role in the operation of the special resolution regime—
(a)the Bank of England,
(b)the Treasury, and
(c)the Financial Services Authority.
(6)The Table describes the provisions of this Part.
| Sections | Topic |
|---|---|
| Sections 1 to 3 | Introduction |
| Sections 4 to 6 | Objectives and code |
| Sections 7 to 10 | Exercise of powers: general |
| Sections 11 to 13 | The stabilisation options |
| Sections 14 to 32 | Transfer of securities |
| Sections 33 to [F148A] | Transfer of property |
| Sections 49 to 62 | Compensation |
| Sections 63 to 75 | Incidental functions |
| Sections 76 to 81 | Treasury |
| Sections 82 and 83 | Holding companies |
| Sections 84 to 89 | Building societies, &c. |
Textual Amendments
F1Word in s. 1(6) substituted (8.4.2010) by Financial Services Act 2010 (c. 28), s. 26(1)(l), Sch. 2 para. 40
Commencement Information
I1S. 1 in force at 21.2.2009 by S.I. 2009/296, art. 3, Sch. para. 1