The Bank Recovery and Resolution (No. 2) Order 2014 No. 3348

PART 5 U.K. Resolution plans

CHAPTER 2 U.K. Group resolution plan where the PRA or FCA is the consolidating supervisor

Application of Chapter 2 U.K.

39.  This Chapter applies where the PRA or FCA is the consolidating supervisor in relation to a relevant group.

The Bank's duty to draw up group resolution plans U.K.

40.—(1) F1 ... The Bank must draw up and adopt a group resolution plan, and is solely responsible for the plan.

F2 (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(3) Subject to the imposition of any simplified obligations (within the meaning given by article 9(3)(b)) with respect to a group resolution plan, the plan must[F3 —

(a) contain the information, and be drawn up with regard to the considerations, set out in Schedule 2; and

(b) contain information specified in any technical standards made under paragraph (3A).]

[F4 (3A) Taking into account the diversity of business models of groups in the United Kingdom, the Bank may make technical standards relating to information to be contained in the group resolution plan.]

(4) The resolution plan must be drawn up on the basis of—

(a) the information provided for that purpose by a group entity set up in the United Kingdom or by the appropriate regulator; and

(b) any other relevant information.

[F5 (4A) The Bank may make technical standards relating to—

(a) the procedures for the provision of information under paragraph (4)(a); and

(b) a minimum set of standard forms and templates for such provision of information.]

(5) For the purpose of drawing up a group resolution plan, the Bank must consult—

(a) the appropriate regulator;

F6 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F6 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(6) A group resolution plan must not have a disproportionate impact on [F7 the United Kingdom].

[F8 (6A) In a relevant group, where a mixed-activity holding company has at least one subsidiary which is—

(a) an institution; and

(b) a subsidiary of a financial holding company,

the group resolution plan shall provide that the financial holding company is identified as a resolution entity. “Institution” in this subsection has the same meaning as in the capital requirements regulation.]

(7) For the purpose of drawing up a group resolution plan, so far as the plan is relevant to—

(a) a subsidiary within the relevant group which is set up in a third country, or

(b) an institution within the relevant group which has a significant branch in a third country,

the Bank may consult the authorities which, in the country concerned, exercise any function equivalent to a function of [F9 the Bank under Part 1 of the Banking Act 2009 or the PRA or the FCA under FSMA].

[F10 (8) In paragraph (7)—

“branch” has the meaning given in point (17) of Article 4.1 of the capital requirements regulation; and

“significant branch” shall be construed with regard, in particular, to the following—

(a)

whether the market share of the branch in terms of deposits exceeds 2% in the third country;

(b)

the likely impact of a suspension or closure of the operations of the institution on systemic liquidity and the payment, clearing and settlement systems in the third country;

(c)

the size and importance of the branch in terms of number of clients within the context of the banking or financial system of the third country.]

Textual Amendments

F1 Words in art. 40(1) 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. 25(2); 2020 c. 1, Sch. 5 para. 1(1)

F2 Art. 40(2) 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. 25(3); 2020 c. 1, Sch. 5 para. 1(1)

F3 Words in art. 40(3) 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. 25(4); 2020 c. 1, Sch. 5 para. 1(1)

F4 Art. 40(3A) inserted (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. 25(5); 2020 c. 1, Sch. 5 para. 1(1)

F5 Art. 40(4A) inserted (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. 25(6); 2020 c. 1, Sch. 5 para. 1(1)

F6 Art. 40(5)(b)(c) 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. 25(7); 2020 c. 1, Sch. 5 para. 1(1)

F7 Words in art. 40(6) 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. 25(8); 2020 c. 1, Sch. 5 para. 1(1)

F8 Art. 40(6A) inserted (28.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 31

F9 Words in art. 40(7) 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. 25(9); 2020 c. 1, Sch. 5 para. 1(1)

F10 Art. 40(8) inserted (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. 25(10); 2020 c. 1, Sch. 5 para. 1(1)

Information to be transmitted for the purpose of drawing up group resolution plans U.K.

41.—(1) For the purposes of drawing up and adopting a group resolution plan the Bank must send relevant information [F11 to the appropriate regulator]—

F12 (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F12 (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F12 (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(2) This article does not require any information to be disclosed if its disclosure would be contrary to section 348 of FSMA as applied for the purposes of Part 1 of the Banking Act 2009 (with modifications) by section 89L of that Act M1 (restrictions on disclosure of confidential information).

F13 (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F11 Words in art. 41(1) inserted (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. 26(2)(a); 2020 c. 1, Sch. 5 para. 1(1)

F12 Art. 41(1)(a)(b)(c) 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. 26(2)(b); 2020 c. 1, Sch. 5 para. 1(1)

F13 Art. 41(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. 26(3); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M1 Section 89L was inserted by S.I. 2014/3329.

Joint decision on adoption of group resolution plan U.K.

F14 42.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F14 Art. 42 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. 27; 2020 c. 1, Sch. 5 para. 1(1)

References to EBA U.K.

F15 43.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F15 Art. 43 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. 27; 2020 c. 1, Sch. 5 para. 1(1)

Requesting the assistance of EBA U.K.

F16 44.  . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F16 Art. 44 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. 27; 2020 c. 1, Sch. 5 para. 1(1)

Duty to transmit a copy of the group resolution plan U.K.

45.  The Bank must send a copy of the group resolution plan to the appropriate regulator F17 ....

Textual Amendments

F17 Words in art. 45 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. 28; 2020 c. 1, Sch. 5 para. 1(1)