11APrivate sector purchaser: marketing

1

Subject to subsection (4), the Bank of England must make arrangements for marketing—

a

any securities issued by the bank which the Bank intends to transfer by a share transfer instrument under section 11(2)(a), or

b

any property, rights or liabilities of the bank which the Bank intends to transfer by a property transfer instrument under section 11(2)(b).

2

The arrangements under subsection (1) must—

a

be as transparent as possible having regard to the circumstances and the need to maintain financial stability;

b

ensure there is no conflict of interest;

c

take account of the need for the Bank to act quickly to address the situation where a bank is failing or likely to fail;

d

aim at maximising, as far as possible, the sale price for the securities or property, rights or liabilities involved.

3

The arrangements under subsection (1) must not—

a

materially misrepresent the securities or property, rights or liabilities which the Bank intends to transfer;

b

favour or discriminate between potential purchasers or grant an unfair advantage to a potential purchaser.

4

Subsection (1) does not apply if the Bank of England considers that complying with that subsection would undermine one or more of the special resolution objectives.

5

In particular subsection (1) does not apply if the Bank considers that—

a

there is a material threat to financial stability in the United Kingdom or another EEA state arising from or aggravated by the failure or likely failure of the bank, and

b

complying with subsection (1) would undermine the effectiveness of the first stabilisation option in addressing that threat or achieving the objective in section 4(4).

7

Any public disclosure of the marketing which may be required under Article 17(1) of Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse M1 may be delayed in accordance with Article 17(4) or (5) of that Regulation.