Bank Recovery and Resolution (No. 2) Order 2014 [SI 2014 No. 3348]

Version status: In force | Document consolidation status: Updated to reflect all known changes

Published date: 18 December 2014

Bank Recovery and Resolution (No. 2) Order 2014 [SI 2014 No. 3348]

To be revoked by s. 1 and Sch. 1 Pt 2 to the Financial Services and Markets Act 2023 (c. 29) (FSMA 2023), Sch. 1 Pt 2 not yet fully commenced.

	Introductory Text
	Part 1 Introductory provisions (arts. 1-3)
	Article 1 Citation and commencement
	Article 2 Interpretation
	Article 3 Application of Order
	Part 2 Designation of authorities and competent ministry (arts. 4-6)
	Article 4 Designation of the Bank as resolution authority
	Article 5 Designation for the purposes of Article 59 of the recovery and resolution directive
	Article 6 Designation of the Treasury as the ministry responsible for exercising the functions of the competent ministry
	Part 3 Recovery and resolution planning (arts. 7-10)
	Article 7 Recovery planning: preparatory steps and simplified obligations
	Article 8 Resolution planning: preparatory steps and simplified obligations
	Article 9 Consultation with the Financial Policy Committee
	Article 10 Provision of information to EBA
	Part 4 Recovery plans (arts. 11-35)
	Chapter 1 Assessment of recovery plan drawn up by an institution (arts. 11-15)
	Article 11 Application and interpretation of Chapter 1
	Article 12 Assessment of plan
	Article 13 Criteria for assessment
	Article 14 Revision of plan
	Article 15 Business changes and relevant measures
	Chapter 2 Assessment of group recovery plan where the PRA or FCA is the consolidating supervisor (arts. 16-26)
	Article 16 Application and interpretation of Chapter 2
	Article 17 Duty to transmit a copy of group recovery plan
	Article 18 Assessment of group recovery plan
	Article 19 Purpose of assessment
	Article 20 Timing of assessment of plan
	Article 21 Joint assessment of plan
	Article 22 Revision of plan
	Article 23 Business changes and relevant measures
	Article 24 Recovery plan for group institution
	Article 25 References to EBA
	Article 26 Requesting the assistance of EBA
	Chapter 3 Assessment of group recovery plan where neither the PRA nor the FCA is the consolidating supervisor (arts. 27-32)
	Article 27 Application and interpretation of Chapter 3
	Article 28 Purpose of assessment
	Article 29 Joint assessment of plan
	Article 30 Assessment of recovery plans drawn up on an individual basis
	Article 31 References to EBA
	Article 32 Requesting the assistance of EBA
	Chapter 4 Review of recovery plans and group recovery plans (arts. 33-35)
	Article 33 Review of recovery plan
	Article 34 Review of group recovery plan assessed under Chapter 2
	Article 35 Review of group recovery plan assessed under Chapter 3
	Part 5 Resolution plans (arts. 36-58)
	Chapter 1 Resolution plans for institutions (arts. 36-38)
	Article 36 Interpretation of Chapter 1
	Article 37 The Bank's duty to draw up resolution plans
	Article 38 Duty to transmit a copy of the resolution plan
	Chapter 2 Group resolution plan where the PRA or FCA is the consolidating supervisor (arts. 39-45)
	Article 39 Application of Chapter 2
	Article 40 The Bank's duty to draw up group resolution plans
	Article 41 Information to be transmitted for the purpose of drawing up group resolution plans
	Article 42 Joint decision on adoption of group resolution plan
	Article 43 References to EBA
	Article 44 Requesting the assistance of EBA
	Article 45 Duty to transmit a copy of the group resolution plan
	Chapter 3 Group resolution plan where neither the PRA nor the FCA is the consolidating supervisor (arts. 46-52)
	Article 46 Application and interpretation of Chapter 3
	Article 47 Joint decision on adoption of group resolution plan
	Article 48 Failure to reach joint decision: disagreement by the Bank with a joint proposal
	Article 49 Failure to reach joint decision: agreement by the Bank with a joint proposal
	Article 50 Resolution plan for group entity
	Article 51 References to EBA
	Article 52 Requesting the assistance of EBA
	Chapter 4 Review of resolution plans and group resolution plans (arts. 53-55)
	Article 53 Review of resolution plan
	Article 54 Review of group resolution plan drawn up by the Bank
	Article 55 Review of group resolution plan drawn up by another resolution authority
	Chapter 5 Information and records for resolution planning (arts. 56-58)
	Article 56 Information required for resolution planning
	Article 57 Notice of matters which could necessitate an amendment of a plan
	Article 58 Records of financial contracts
	Part 6 Assessment of resolvability and removal of impediments to resolvability (arts. 59-82)
	Chapter 1 Assessment of resolvability of institutions (arts. 59-60)
	Article 59 Application and interpretation of Chapter 1
	Article 60 Assessment of resolvability
	Chapter 2 Assessment of resolvability of groups (arts. 61-63)
	Article 61 Application and interpretation of Chapter 2
	Article 62 Assessment of group resolvability where the PRA or FCA is the consolidating supervisor
	Article 63 Assessment of group resolvability where neither the PRA nor the FCA is the consolidating supervisor
	Chapter 3 Removal of impediments to resolvability of institutions (arts. 64-67)
	Article 64 Application and interpretation of Chapter 3
	Article 65 Notice of determination
	Article 66 Effect of notice of determination
	Article 67 Right of appeal
	Chapter 4 Removal of impediments to resolvability of group entities where the PRA or FCA is the consolidating supervisor (arts. 68-74)
	Article 68 Application and interpretation of Chapter 4
	Article 69 Report on substantive impediments to the resolvability of group entities
	Article 70 Suspension of requirement to draw up or review group resolution plan
	Article 71 Determining remedial measures
	Article 72 Joint decision on impediments to group resolvability and remedial measures
	Article 73 References to EBA
	Article 74 Requesting the assistance of EBA
	Chapter 5 Removal of impediments to resolvability of groups where neither the PRA nor the FCA is the consolidating supervisor (arts. 75-82)
	Article 75 Application and interpretation of Chapter 5
	Article 75A Report on substantive impediments to the resolvability of group entities
	Article 76 Suspension of requirement to draw up or review group resolution plan
	Article 77 Determining remedial measures
	Article 78 Joint decision on impediments to group resolvability and remedial measures
	Article 79 Failure to reach joint decision: disagreement by the Bank with joint proposals
	Article 80 Failure to reach joint decision: agreement by the Bank with joint proposals
	Article 81 References to EBA
	Article 82 Requesting the assistance of EBA
	Part 7 Intra-group financial support (arts. 83-106)
	Chapter 1 Authorisation of agreement for group financial support where the PRA or FCA is the consolidating supervisor (arts. 83-90)
	Article 83 Application and interpretation of Chapter 1
	Article 84 Review of group financial support agreement and decision on authorisation
	Article 85 Duty to transmit a copy of application
	Article 86 Joint decision with other competent authorities
	Article 87 References to EBA
	Article 88 Requesting the assistance of EBA
	Article 89 Duty to transmit a copy of authorised agreement
	Article 90 Amendment of authorised agreement
	Chapter 2 Authorisation of agreement for group financial support where neither the PRA nor the FCA is the consolidating supervisor (arts. 91-96)
	Article 91 Application and interpretation of Chapter 2
	Article 92 Review of group financial support agreement and decision on authorisation
	Article 93 Joint decision with other competent authorities
	Article 94 References to EBA
	Article 95 Requesting the assistance of EBA
	Article 96 Amendment of authorised agreement
	Chapter 3 Approval of authorised agreements by the members of a UK group entity (arts. 97-100)
	Article 97 Interpretation of Chapter 3
	Article 98 Requirement for approval of authorised agreement
	Article 98A Publication of information concerning group financial support agreements
	Article 99 Revocation of authorised agreement
	Article 100 Obligation to provide annual report
	Chapter 4 Provision of group financial support (arts. 101-106)
	Article 101 Interpretation of Chapter 4
	Article 102 Relevant notice from UK group entity: decision by the PRA or FCA
	Article 103 Duties of consolidating supervisor where financial support agreed, prohibited or restricted
	Article 104 Re-assessment of recovery plans by the PRA or FCA where it is not the consolidating supervisor
	Article 105 Requesting the assistance of EBA
	Article 106 Reciprocal support
	Part 8 Early intervention (arts. 107-120)
	Chapter 1 Early intervention with respect to an institution (arts. 107-109)
	Article 107 Interpretation of Chapter 1
	Article 108 Notice that institution meets the conditions for early intervention
	Article 109 Deadline for compliance with measure for early intervention
	Chapter 2 Early intervention with respect to groups where the PRA or FCA is the consolidating supervisor (arts. 110-115)
	Article 110 Application and interpretation of Chapter 2
	Article 111 Procedure for early intervention in respect of a UK group entity
	Article 112 Procedure for early intervention in respect of a non-UK group entity
	Article 113 Joint decisions about early intervention
	Article 114 References to EBA
	Article 115 Requesting the assistance of EBA
	Chapter 3 Early intervention with respect to groups where neither the PRA nor the FCA is the consolidating supervisor (arts. 116-120)
	Article 116 Application and interpretation of Chapter 3
	Article 117 Procedure for early intervention in respect of a UK group entity
	Article 118 Joint decisions about early intervention
	Article 119 References to EBA
	Article 120 Requesting the assistance of EBA
	Part 9 Minimum requirement for own funds and eligible liabilities (arts. 121-148)
	Chapter 1 Determination of minimum requirement for an institution (arts. 121-124)
	Article 121 Interpretation of Chapter 1
	Article 122 Duties of the Bank in relation to minimum requirement
	Article 123 Determination of minimum requirement
	Article 124 Review of minimum requirement
	Chapter 2 Determination of minimum consolidated requirement where the PRA or FCA is the consolidating supervisor (arts. 125-129)
	Article 125 Application and interpretation of Chapter 2
	Article 126 Determination of minimum consolidated requirement
	Article 127 Joint determination
	Article 128 References to EBA: determination of minimum consolidated requirement
	Article 129 Review of minimum consolidated requirement
	Chapter 3 Determination of minimum consolidated requirement where neither the PRA nor the FCA is the consolidating supervisor (arts. 130-132)
	Article 130 Application and interpretation of Chapter 3
	Article 131 Joint determination of minimum consolidated requirement
	Article 132 Review of minimum consolidated requirement
	Chapter 4 Determination of minimum requirements for group institutions where the PRA or FCA is the consolidating supervisor (arts. 133-139)
	Article 133 Application and interpretation of Chapter 4
	Article 134 Duties of the Bank in relation to minimum requirement
	Article 135 Determination of minimum requirement
	Article 136 Joint determination of minimum requirements
	Article 137 References to EBA: determination of minimum requirement
	Article 138 Review of minimum requirements
	Article 139 Minimum requirement for other group entities set up in the United Kingdom
	Chapter 5 Determination of minimum requirements for group institutions where neither the PRA nor the FCA is the consolidating supervisor (arts. 140-146)
	Article 140 Application and interpretation of Chapter 5
	Article 141 Duties of the Bank in relation to minimum requirement
	Article 142 Determination of minimum requirement
	Article 143 Joint determination of minimum requirements
	Article 144 References to EBA: determination of minimum requirement
	Article 145 Review of minimum requirements
	Article 146 Minimum requirement for other group entities set up in the United Kingdom
	Chapter 6 Minimum requirement for own funds and eligible liabilities: other provisions (arts. 147-148)
	Article 147 Waiver of application of Chapter 4
	Article 148 Meeting minimum requirement through contractual bail-in instruments etc
	Part 10 Requirement to write down or convert capital instruments (arts. 149-153)
	Article 149 Application and interpretation of Part
	Article 150 Determinations under section 6A and 81AA of the Banking Act 2009: preliminary steps for UK group entities
	Article 151 Regulator to take alternative measures
	Article 152 Determination that Case 2, 3, 4 or 5 is satisfied
	Article 153 Joint determination under Article 59(3)(c) of the recovery and resolution directive in relation to a non-UK group entity
	Part 11 Removal of procedural impediments to application of bail-in tool (arts. 154-156)
	Article 154 Interpretation of Part
	Article 155 Requirement to increase or remove limit on share capital
	Article 156 Removal of impediments to the conversion of liabilities into shares
	Part 11A Contractual recognition of bail-in (art. 156A)
	Article 156A Contractual recognition of bail-in: technical standards
	Part 12 Treatment of derivative contracts where bail-in option is applied (arts. 157-158)
	Article 157 Application and interpretation of Part
	Article 158 Liabilities arising from derivative contracts
	Part 13 Preparation of business reorganisation plans after application of bail-in tool (arts. 159-180)
	Chapter 1 Assessment of business reorganisation plan drawn up by an institution (arts. 159-162)
	Article 159 Application and interpretation of Chapter 1
	Article 160 Assessment of business reorganisation plan
	Article 161 Purpose of assessment
	Article 162 Revision of plan
	Chapter 2 Assessment of business reorganisation plan drawn up by a single group entity (arts. 163-164)
	Article 163 Application and interpretation of Chapter 2
	Article 164 Assessment etc of business reorganisation plan
	Chapter 3 Assessment of business reorganisation plan drawn up for relevant group where the PRA or FCA is the consolidating supervisor (arts. 165-174)
	Article 165 Application and interpretation of Chapter 3
	Article 166 Duty to transmit a copy of business reorganisation plan
	Article 167 Assessment of business reorganisation plan
	Article 168 Purpose of assessment
	Article 169 Assessment of plan where every group entity is set up in the United Kingdom
	Article 170 Joint assessment of plan
	Article 171 Revision of plan
	Article 172 Assessment of business reorganisation plans drawn up on an individual basis
	Article 173 References to EBA
	Article 174 Requesting the assistance of EBA
	Chapter 4 Assessment of business reorganisation plan drawn up for relevant group where neither the PRA nor the FCA is the consolidating supervisor (arts. 175-180)
	Article 175 Application and interpretation of Chapter 4
	Article 176 Purpose of assessment
	Article 177 Joint assessment of plan
	Article 178 Assessment of business reorganisation plans drawn up on an individual basis
	Article 179 References to EBA
	Article 180 Requesting the assistance of EBA
	Part 14 Procedural obligations where an undertaking is failing or likely to fail (arts. 181-184A)
	Article 181 Interpretation of Part
	Article 182 Matters to be notified by the regulator to the Bank
	Article 183 Notification that an undertaking is failing or likely to fail
	Article 184 Duty to send copy of share transfer instrument etc to members and creditors of institution
	Article 184A Notifications under articles 182, 183 and 184
	Part 15 Applications to the court in relation to resolution action (arts. 185-186)
	Article 185 Stay of legal proceedings
	Article 186 Remedies on judicial review
	Part 16 Cross-border group resolution (arts. 187-215)
	Chapter 1 General provisions (arts. 187-189)
	Article 187 Principles for reaching decisions which may have an impact in two or more EEA States
	Article 188 Information exchange
	Article 189 Requirements for group resolution schemes
	Chapter 2 Resolution colleges (arts. 190-194)
	Article 190 Application of Chapter 2
	Article 191 Duty to establish a resolution college
	Article 192 Membership of resolution college
	Article 193 Functioning of resolution college
	Article 194 Use of an existing resolution college
	Chapter 3 European resolution colleges (arts. 195-198)
	Article 195 Application of Chapter 3
	Article 196 Establishment and functioning of a European resolution college
	Article 197 Recognition of third-country resolution action
	Article 198 Use of an existing resolution college
	Chapter 4 Group resolution involving a group subsidiary where the PRA or FCA is the consolidating supervisor (arts. 199-202)
	Article 199 Application and interpretation of Chapter 4
	Article 200 Assessment of impact of notified measures
	Article 201 Joint decision on adoption of group resolution scheme
	Article 202 Requesting the assistance of EBA
	Chapter 5 Group resolution involving a group subsidiary where neither the PRA nor the FCA is the consolidating supervisor (arts. 203-207)
	Article 203 Application Chapter 5
	Article 204 Bank decision that group subsidiary meets the conditions for resolution
	Article 205 Joint decision on adoption of group resolution scheme
	Article 206 Failure to reach joint decision: disagreement by the Bank with joint proposals
	Article 207 Requesting the assistance of EBA
	Chapter 6 Group resolution where EEA parent undertaking is set up in the United Kingdom (arts. 208-211)
	Article 208 Application and interpretation of Chapter 6
	Article 209 Bank decision that EEA parent undertaking meets the conditions for resolution
	Article 210 Joint decision on adoption of group resolution scheme
	Article 211 Requesting the assistance of EBA
	Chapter 7 Group resolution where EEA parent undertaking is set up in another EEA State (arts. 212-215)
	Article 212 Application of Chapter 7
	Article 213 Joint decision on adoption of group resolution scheme
	Article 214 Failure to reach joint decision: disagreement by the Bank with joint proposals
	Article 215 Requesting the assistance of EBA
	Part 17 Modified application of company law to banks etc in resolution (arts. 216-220A)
	Article 216 Interpretation of Part
	Article 217 Shadow directorship
	Article 218 Modified application of legislation on cross-border mergers
	Article 219 Modified application of the Companies Act 2006 (disapplication of Takeover Rules)
	Article 220 Modified application of the Companies Act 2006 (disapplication of other requirements)
	Article 220A Modified application of the Companies Act 2006 (shareholders' rights)
	Part 18 Treasury support for investment firms (art. 221)
	Article 221 Investment firms to be treated as financial institutions
	Part 19 Miscellaneous provisions (arts. 222-225)
	Article 222 Continuity
	Article 223 Duty to co-operate
	Article 224 Non-binding co-operation arrangements in line with EBA framework arrangements
	Article 225 Duty to inform EBA of imposition of penalties
	Part 20 Amendments (art. 226)
	Article 226 Amendments of primary and secondary legislation
	Part 21 Review (art. 227)
	Article 227 Review
	Schedule A1 Information to be contained in a recovery plan or group recovery plan
	Schedule 1 Information to be contained in a resolution plan
	Schedule 2 Information to be contained in a group resolution plan
	Schedule 2A Additional information which may be required for the purposes of a resolution plan or group resolution plan
	Schedule 2B Matters that the Bank is to consider when assessing resolvability
	Schedule 3 Amendments
	Schedule 3, Part 1 Amendments of FSMA (paras. 1-5)
	Schedule 3, Part 2 Amendments of other primary legislation (para. 6)
	Schedule 3, Part 3 Amendments of secondary legislation (paras. 7-13)
	Schedule 4 Modified application of the Companies Act 2006 to banks etc in resolution
	Schedule 4, Part 1 Provisions concerning the exercise of certain rights of shareholders in listed companies (paras. 1-23)
	Schedule 4, Part 2 Provisions concerning mergers and divisions of public limited liability companies (para. 24)
	Schedule 4, Part 3 Provisions concerning the maintenance and alteration of a company's share capital (paras. 25-36)
	Signature
	Explanatory Note
	Explanatory Memorandum
	Transposition Note