- Latest available (Revised)
- Point in Time (21/12/2018)
- Original (As made)
Version Superseded: 31/12/2020
Point in time view as at 21/12/2018.
There are currently no known outstanding effects for the The Bank Recovery and Resolution (No. 2) Order 2014, PART 14.
Revised legislation carried on this site may not be fully up to date. At the current time any known changes or effects made by subsequent legislation have been applied to the text of the legislation you are viewing by the editorial team. Please see ‘Frequently Asked Questions’ for details regarding the timescales for which new effects are identified and recorded on this site.
181. In this Part—
“the regulator”—
in relation to an undertaking which is a PRA-authorised person, means the PRA; and
in relation to any other undertaking, means the FCA.
“undertaking” means—
an institution which is authorised by the PRA or FCA and is not part of a group subject to supervision on a consolidated basis in accordance with Article 111 of the capital requirements directive;
in relation to a relevant group, a group entity set up in the United Kingdom; or
a mixed activity holding company set up in the United Kingdom.
182. The regulator must notify the Bank if—
(a)an undertaking notifies the regulator that the undertaking is failing or likely to fail (within the meaning given in Article 32.4 of the recovery and resolution directive); or
(b)the regulator requires an undertaking to take crisis prevention measures M1 or a measure referred to in Article 104.1 of the capital requirements directive.
Marginal Citations
M1For the meaning of “crisis prevention measures” see the recovery and resolution directive, Article 2.1, point (101).
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 M2.
(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
M2OJ No. L 331, 15.12.2010, p. 1.
184.—(1) This article applies where, in respect of an undertaking—
(a)the Bank has applied one or more of the resolution tools; or
(b)the Treasury have made a share transfer order for the purpose of taking the undertaking into temporary public ownership.
(2) Except where securities issued by the undertaking have been admitted to trading on a regulated market (within the meaning given in section 103(1) of FSMA), the Bank must send a copy of any property transfer instrument, resolution instrument, share transfer instrument, share transfer order or third-country instrument made in respect of the undertaking to the members and creditors of the undertaking who are known to the Bank.
(3) In this article—
“member” includes—
a shareholder of a company;
a member of a limited liability partnership; and
a shareholding or borrowing member of a building society established under the Building Societies Act 1986 M3 (“shareholding member” and “borrowing member” have the meaning given in paragraph 5(2) of Schedule 2 to that Act);
“property transfer instrument” means a property transfer instrument (within the meaning given by section 33 M4) made under section 11 (private sector purchaser), section 41A M5 (transfer of property subsequent to resolution instrument), section 42 M6 (supplemental instruments), section 42A M7 (private sector purchaser: reverse property transfer), section 43 M8 (onward transfer), section 44 M9 (resolution company: reverse property transfer) or section 44A M10 (bail-in: reverse property transfer);
“resolution instrument” means a resolution instrument made under section 12A (bail-in option), section 48U (supplemental resolution instruments), section 48V (onward transfer) or section 48W (reverse transfer) M11;
“M12 (supplemental instruments), section 26A M13 (private sector purchaser: reverse share transfer), section 30 M14 (resolution company: share transfers) or section 31 M15 (resolution company: reverse share transfer);
” means a share transfer instrument (within the meaning given by section 15) made under section 11, section 26“M16 (temporary public ownership), section 27 M17 (supplemental orders), section 28 M18 (onward transfer) or section 29 M19 (reverse share transfer); and
” means a share transfer order (within the meaning given by section 16) made by the Treasury under section 13“third-country instrument” has the meaning given in section 89I(4) M20.
(4) In paragraph (3) each reference to a section is a reference to a section of the Banking Act 2009.
Marginal Citations
M4Section 33 was amended by S.I. 2014/3329.
M5Section 41A was inserted of the Financial Services (Banking Reform) Act 2013, Schedule 2, paragraphs 1 and 5(1); and was amended by S.I. 2014/3329.
M6Section 42 was amended by S.I. 2014/3329.
M7Section 42A was inserted by the Financial Services Act 2012, section 97(1) and (5).
M8Section 43 was amended by the Financial Services Act 2012, Schedule 17, paragraph 22, and by S.I. 2014/3329.
M9Section 44 was amended by the Financial Services Act 2012, section 97 and Schedule 17, paragraph 23, by the Financial Services (Banking Reform) Act 2013, Schedule 2, paragraph 16, and by S.I. 2014/3329.
M10Section 44A was inserted of the Financial Services (Banking Reform) Act 2013, Schedule 2, paragraphs 1 and 5(3); and was amended by S.I. 2014/3329.
M11Sections 12A, 48U, 48V and 48W were inserted of the Financial Services (Banking Reform) Act 2013, Schedule 2, paragraphs 1, 2 and 4; and were amended by S.I. 2014/3329.
M12Section 26 was amended by the Financial Services Act 2012, Schedule 17(1), paragraph 14, and by S.I. 2014/3329.
M13Section 26A was inserted by the Financial Services Act 2012, section 97(1) and (2).
M14Section 30 was amended by the Financial Services Act 2012, Schedule 17(1), paragraph 18, and by S.I. 2014/3329.
M15Section 31 was amended by the Financial Services Act 2012, section 97(4)(a) and (b), section 97(4)(c) and Schedule 17(1), paragraph 12, and by S.I. 2014/3329.
M16Section 13 was amended by the Financial Services (Banking Reform) Act 2013, Schedule 2, paragraph 13, and by S.I. 2014/3329.
M17Section 27 was amended by the Financial Services Act 2012, Schedule 17(1), paragraph 15.
M18Section 28 was amended by the Financial Services Act 2012, Schedule 17(1), paragraph 16.
M19Section 29 was amended by the Financial Services Act 2012, section 97(3) and Schedule 17(1), paragraph 17.
M20Section 89I was inserted by S.I. 2014/3329.
The Whole Instrument you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Instrument you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Instrument without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Instrument without Schedules you have selected contains over 200 provisions and might take some time to download.
Would you like to continue?
The Whole Instrument you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
The Whole Instrument without Schedules you have selected contains over 200 provisions and might take some time to download. You may also experience some issues with your browser, such as an alert box that a script is taking a long time to run.
Would you like to continue?
Latest Available (revised):The latest available updated version of the legislation incorporating changes made by subsequent legislation and applied by our editorial team. Changes we have not yet applied to the text, can be found in the ‘Changes to Legislation’ area.
Original (As Enacted or Made): The original version of the legislation as it stood when it was enacted or made. No changes have been applied to the text.
Point in Time: This becomes available after navigating to view revised legislation as it stood at a certain point in time via Advanced Features > Show Timeline of Changes or via a point in time advanced search.
Geographical Extent: Indicates the geographical area that this provision applies to. For further information see ‘Frequently Asked Questions’.
Show Timeline of Changes: See how this legislation has or could change over time. Turning this feature on will show extra navigation options to go to these specific points in time. Return to the latest available version by using the controls above in the What Version box.
Explanatory Memorandum sets out a brief statement of the purpose of a Statutory Instrument and provides information about its policy objective and policy implications. They aim to make the Statutory Instrument accessible to readers who are not legally qualified and accompany any Statutory Instrument or Draft Statutory Instrument laid before Parliament from June 2004 onwards.
Access essential accompanying documents and information for this legislation item from this tab. Dependent on the legislation item being viewed this may include:
This timeline shows the different points in time where a change occurred. The dates will coincide with the earliest date on which the change (e.g an insertion, a repeal or a substitution) that was applied came into force. The first date in the timeline will usually be the earliest date when the provision came into force. In some cases the first date is 01/02/1991 (or for Northern Ireland legislation 01/01/2006). This date is our basedate. No versions before this date are available. For further information see the Editorial Practice Guide and Glossary under Help.
Use this menu to access essential accompanying documents and information for this legislation item. Dependent on the legislation item being viewed this may include:
Click 'View More' or select 'More Resources' tab for additional information including: