Part 1Special Resolution Regime
Chapter 1 Introduction
1Overview
(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 F1five stabilisation options,
(b)
the bank insolvency procedure (provided by Part 2), and
(c)
the bank administration procedure (provided by Part 3).
F2(3)
The F3five “stabilisation options” are—
(a)
transfer to a private sector purchaser (section 11),
(b)
transfer to a bridge bank (section 12),
F4(ba)
transfer to an asset management vehicle (section 12ZA),
(c)
the bail-in option (section 12A), and
(d)
transfer to temporary public ownership (section 13).
(4)
Each of the F5five stabilisation options is achieved through the exercise of one or more of the “stabilisation powers”, which are—
F6(za)
the resolution instrument powers (sections 12A(2) and 48U to 48W),
(a)
the share transfer powers (sections 15, 16, 26 to 31 and 85), and
(b)
the property transfer powers (sections 33F7, 41A and 42 to 46).
F8(c)
the third country instrument powers (sections 89H to 89J).
(5)
Each of the following has a role in the operation of the special resolution regime—
(a)
the Bank of England,
(b)
the Treasury,
F9(c)
the Prudential Regulation Authority, and
(d)
the Financial Conduct Authority.
(6)
The Table describes the provisions of this Part.
Sections | Topic |
|---|---|
Sections 1 to 3 | Introduction |
F10Sections 3A and 3B | F10Pre-resolution powers |
Sections 4 to 6 | Objectives and code |
F10Sections 6A to 6D | F10Mandatory write-down, conversion etc of capital instruments |
F10Section 6E | F10Valuation before mandatory write-down or stabilisation action |
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 F1148A | Transfer of property |
F10Bail-in option | |
F10Sections 48X and 48Y | F10Replacement of provisional valuation |
F10Section 48Z | F10Termination rights etc |
Sections 49 to 62 | Compensation |
F10Section 62A | F10Independent valuer |
F10Sections 62B to 62E | F10Resolution administrator |
Sections 63 to 75 | Incidental functions |
Sections 76 to F1381A | Treasury |
F14Sections 81B to 83 | F14Groups |
F10Sections 83ZA to 83Z2 | F10Information and enforcement |
F15Section 83A | F15Banks not regulated by the PRA |
Sections 84 to 89 | Building societies, &c. |
F16Section 89A | F16Investment firms |
F17Sections 89B to 89G | F18Recognised central counterparties |
F10Sections 89H to 89J | F10Third-country resolution actions |
F19Section 89JA | Resolution of UK branches of third-country institutions |