(This note is not part of the Order)

This Order implements in part Directive 2014/59/EU of the European Parliament and of the Council of 15th May 2014 establishing a framework for the recovery and resolution of credit institutions and investment firms (OJ L173, 12.6.2014, p.190) ("recovery and resolution directive"). The recovery and resolution directive requires EEA states to have powers to manage the failure of credit institutions and investment firms and their group companies as an alternative to insolvency, in order to ensure that critical functions continue to be performed.

Part 2 of the Order amends the Banking Act 2009 (c.1) ("the Act") to complete the implementation of the recovery and resolution directive.

Articles 3 to 4 make minor amendments to the overview and interpretation provisions in the Act. Article 5 amends the definition of "institution" in section 3A. Articles 6 and 7 remove references to the valuation carried out under section 6E from the conditions for mandatory reduction instruments and the general conditions for exercise of a stabilisation power.

Article 8 sets out the requirements for marketing property of a bank, or securities issued by a bank which are to be transferred by the Bank of England ("the Bank") to a private sector purchaser using its powers under Part 1 of the Act.