C1C2Part 1Special Resolution Regime
Pt. 1: power to amend conferred (1.3.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), ss. 17(3)(f), 148(5); S.I. 2014/377, art. 2(1)(b), Sch. Pt. 2
The stabilisation options
I2I112Bridge bank
1
The second stabilisation option is to transfer all or part of the business of the bank to a company which is wholly owned by the Bank of England (a “bridge bank”).
2
For that purpose the Bank of England may make one or more property transfer instruments.
3
The code of practice under section 5 must include provision about the management and control of bridge banks including, in particular, provision about—
a
setting objectives,
b
the content of the articles of association,
c
the content of reports under section 80(1),
d
different arrangements for management and control at different stages, and
e
eventual disposal.
4
Where property, rights or liabilities are first transferred by property transfer instrument to a bridge bank and later transferred (whether or not by the exercise of a power under this Part) to another company which is wholly owned by the Bank of England, that other company is an “onward bridge bank”.
5
An onward bridge bank—
a
is a bridge bank for the purposes of—
i
subsection (3),
ii
section 77,
iii
section 79, and
iv
section 80(5), but
b
is not a bridge bank for the purposes of—
i
section 30(1),
ii
section 43(1), or
iii
section 80(1).
Pt. 1 restricted (7.1.2010) by Banking Act 2009 (Exclusion of Insurers) Order 2010 (S.I. 2010/35), arts. 1, 2