Modifications etc. (not altering text)
C1Pt. 1 restricted (7.1.2010) by Banking Act 2009 (Exclusion of Insurers) Order 2010 (S.I. 2010/35), arts. 1, 2
C2Pt. 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
Textual Amendments
F1Pt. 1 Ch. 3 formed from ss. 4-83 (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 7
(1)The [F3fourth] stabilisation option is exercised by the use of the power in subsection (2).
[F4(2)The Bank of England may make one or more resolution instruments.
(2A)A resolution instrument may contain provision or proposals of any kind mentioned in subsections (3) to (6).
(2B)The power in subsection (2) must be exercised in accordance with section 12AA.
(2C)When the Bank of England exercise that power, at least one resolution instrument must include provision under section 48H(1) (business reorganisation plan).]
(3)A resolution instrument may—
(a)make special bail-in provision with respect to a specified bank;
(b)make other provision for the purposes of, or in connection with, any special bail-in provision made by that or another instrument.
(4)A resolution instrument may—
(a)provide for securities issued by a specified bank to be transferred to a [F5resolution administrator (see section 62B)] or another person;
(b)make other provision for the purposes of, or in connection with, the transfer of securities issued by a specified bank (whether or not the transfer has been or is to be effected by that instrument, by another resolution instrument or otherwise).
(5)A resolution instrument may set out proposals with regard to the future ownership of a specified bank or of the business of a specified bank, and any other proposals (for example, proposals about making special bail-in provision) that the Bank of England may think appropriate.
(6)A resolution instrument may make any other provision the Bank of England may think it appropriate to make in exercise of specific powers under this Part.
(7)Provision made in accordance with subsection (4) may relate to—
(a)specified securities, or
(b)securities of a specified description.
(8)Where the Bank of England has exercised the power in subsection (4) to transfer securities to a [F6resolution administrator], the Bank of England must exercise its functions under this Part (see, in particular, section 48V) with a view to ensuring that any securities held by a person in the capacity of a [F6resolution administrator] are so held only for so long as is, in the Bank of England's opinion, appropriate having regard to the special resolution objectives.
(9)References in this Part to “special bail-in provision” are to provision made in reliance on section 48B.]
Textual Amendments
F2Ss. 12A, 12B inserted (31.12.2014) by Financial Services (Banking Reform) Act 2013 (c. 33), s. 148(5), Sch. 2 para. 2; S.I. 2014/3160, art. 2(1)(b)
F3Word in s. 12A(1) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 20(2)
F4Ss. 12A(2)-(2C) substituted for s. 12A(2) (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 20(3)
F5Words in s. 12A(4)(a) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 20(4)
F6Words in s. 12A(8) substituted (1.1.2015) by The Bank Recovery and Resolution Order 2014 (S.I. 2014/3329), arts. 1(2), 20(5)