The Bank Recovery and Resolution (No. 2) Order 2014

Notification that an undertaking is failing or likely to fail U.K.

183.—(1) Where the regulator is satisfied that an undertaking is failing or likely to fail, it must give notice of that fact to the Bank.

(2) Where the Bank is satisfied, having regard to timing and other relevant circumstances, that it is not reasonably likely that (ignoring the stabilisation powers) action will be taken by or in respect of the undertaking that will prevent the failure of the undertaking, the Bank must give notice of that fact to the regulator.

(3) The Bank must also give notice of that fact—

(a) where the undertaking is a group entity and the regulator is not the consolidating supervisor for the relevant group concerned, to the consolidating supervisor and the group-level resolution authority;

(b) to the resolution authority and competent authority established in any other EEA State in which the undertaking has a significant branch or operates a place of business;

(c) to the scheme manager of the Financial Services Compensation Scheme (established under Part 15 of FSMA);

(d) to the Treasury in their capacity of—

(i) the person in charge of financing arrangements made in accordance with Article 100 of the recovery and resolution directive for the purpose of ensuring the effectiveness of resolution action by the Bank; and

(ii) competent ministry;

(e) to the Financial Policy Committee; and

(f) to the European Systemic Risk Board established by Regulation (EU) No. 1092/2010 of the European Parliament and of the Council of 24th November 2010 on European Union macro-prudential oversight of the financial system and establishing a European Systemic Risk Board M1 .

(4) Where the undertaking is part of a group subject to supervision on a consolidated basis in accordance with Article 111 of the capital requirements directive, the Bank is not required to give notice under paragraph (3) to any person referred to in that paragraph who is also a member of the college.

(5) This article does not require any information to be disclosed if its disclosure would be contrary to section 348 of FSMA.

Marginal Citations

M1 OJ No. L 331, 15.12.2010, p. 1.