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

Determining remedial measures U.K.

71.—(1) The [F1 UK] parent undertaking may, within [F2 the response period] beginning with the date on which it receives the Bank's report, submit to the Bank its observations on the report and a proposal to take alternative remedial measures (“alternative proposal”).

(2) The Bank must send such observations and any alternative proposal to [F3 the appropriate regulator].

(3) F4 ... The Bank must—

(a) confirm the impediments with or without modification;

(b) assess any alternative proposal; and

(c) determine remedial measures in the exercise of pre-resolution powers—

(i) where the Bank concludes that the measures set out in an alternative proposal would adequately address or effectively remove the impediments, by approving that proposal (with or without modification);

(ii) otherwise, by specifying the measures which are to be taken.

F5 (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(5) The Bank must consult the appropriate regulator and, where appropriate, the Financial Policy Committee before determining remedial measures under paragraph (3)(c).

(6) In considering any matter referred to in paragraph (3) or (4) the Bank must take account of—

(a) the threat to financial stability posed by the impediments; and

(b) the effect of the measures on—

(i) the business and financial stability of each group entity and its ability to contribute to the economy of the United Kingdom F6 ...

(ii) the [F7 market in the United Kingdom] for financial services;

(iii) the financial stability of [F8 the United Kingdom].

(7) Paragraphs (8) and (9) apply where remedial measures determined under paragraph (3) F9 ... are to be implemented by a group entity set up in the United Kingdom.

(8) The Bank must exercise pre-resolution powers with the object of requiring the entity to take the remedial measures.

(9) In a direction given for that purpose, the Bank—

(a) if it has specified the measures which are to be taken, must demonstrate how the measures set out in an alternative proposal would not adequately address or effectively remove the impediments;

(b) must demonstrate how the remedial measures will adequately address or effectively remove the impediments in a manner proportionate to the burden or restriction imposed by the direction; and

(c) must require the entity to—

(i) prepare a plan showing how it will comply with the remedial measures; and

(ii) submit that plan within one month beginning on the date of the direction.

Textual Amendments

F1 Word in art. 71(1) substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 44(2); 2020 c. 1, Sch. 5 para. 1(1)

F2 Words in art. 71(1) substituted (28.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 40

F3 Words in art. 71(2) substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 44(3); 2020 c. 1, Sch. 5 para. 1(1)

F4 Words in art. 71(3) omitted (31.12.2020) by virtue of The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 44(4); 2020 c. 1, Sch. 5 para. 1(1)

F5 Art. 71(4) omitted (31.12.2020) by virtue of The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 44(5); 2020 c. 1, Sch. 5 para. 1(1)

F6 Words in art. 71(6)(b)(i) omitted (31.12.2020) by virtue of The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 44(6)(a); 2020 c. 1, Sch. 5 para. 1(1)

F7 Words in art. 71(6)(b)(ii) substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 44(6)(b); 2020 c. 1, Sch. 5 para. 1(1)

F8 Words in art. 71(6)(b)(iii) substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 44(6)(c); 2020 c. 1, Sch. 5 para. 1(1)

F9 Words in art. 71(7) omitted (31.12.2020) by virtue of The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 44(7); 2020 c. 1, Sch. 5 para. 1(1)