UK HM Treasury Publishes Updated Special Resolution Regime Code of Practice

Shearman & Sterling LLP
Contact

Shearman & Sterling LLP

HM Treasury has published a revised"Banking Act 2009 Special Resolution Regime Code of Practice". The Code aims to encourage financial stability by resolving institutions such as banks, building societies and certain investment firms that are failing, and protecting depositors, taxpayers and the wider economy from the consequences of such failure. The Code was first published in November 2010 and was last updated in March 2015. The Code has been amended to take into account the Bank Recovery and Resolution Order 2016 which came into force on December 16, 2016. The Order amends the Banking Act 2009, the Financial Services and Markets Act 2000 and certain related secondary legislation in order, among other things, to ensure that the Bank of England (as the UK's resolution authority) and the Prudential Regulation Authority and Financial Conduct Authority (as the regulators) have powers to manage the failure of a bank or investment firm and their group companies and to ensure that critical functions continue to be performed. The Order also provides specific powers to the PRA and FCA to replace directors and senior managers and appoint temporary managers, amends provisions relating to triggers of contractual termination rights and adds new provisions relating to the resolution of UK branches of third-country firms. The Code has been updated to reflect the relevant changes, in particular those relating to contractual termination rights and the resolution of UK branches of third-country firms.

View the revised SRR Code of Practice.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Shearman & Sterling LLP | Attorney Advertising

Written by:

Shearman & Sterling LLP
Contact
more
less

Shearman & Sterling LLP on:

Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
Custom Email Digest
- hide
- hide