SCHEDULES

SCHEDULE 11Central counterparties

PART 5Special resolution action

I1I2102Restriction on remuneration

1

The Bank may restrict or prohibit for a specified period discretionary payments to specified employees or specified shareholders of a CCP.

2

The power under sub-paragraph (1) must be exercised by way of provision in a share transfer instrument, property transfer instrument or resolution instrument.

3

The specified period for the purposes of sub-paragraph (1) must not exceed 5 years (but this is subject to sub-paragraph (4)).

4

A provision under sub-paragraph (1) restricting or prohibiting discretionary payments in relation to a CCP ceases to have effect if—

a

any of the conditions under paragraph 17 cease to be met in relation to the CCP, and

b

the Bank is satisfied that following the exercise of any of the stabilisation powers in relation to the CCP, the CCP has sufficient resources to pay compensation and repay any public funds in connection with the exercise of those powers.

5

In this paragraph—

  • “discretionary payments” has the meaning given in paragraph 13;

  • “specified” means specified in the instrument under sub-paragraph (2).