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The Banking Act 2009 (Mandatory Compensation Arrangements Following Bail-in) Regulations 2014

Consolidated Text Cited authorities 29 Cited in Amendments 3 Related
Vincent
JurisdictionUK Non-devolved
CitationSI 2014/3330
Year2014
(1) These Regulations may be cited as the Banking Act 2009 (Mandatory Compensation Arrangements Following Bail-in) Regulations 2014.(2) These Regulations come into force on 1st January 2015.(1) In these Regulations—
  • “the Act” means the Banking Act 2009;
  • “the Bank” means the Bank of England;
  • “banking institution” means—
    • (a) a bank ;
    • (b) a building society (within the meaning of section 119 of the Building Societies Act 1986) ;
    • (c) an investment firm ) ;
    • (d) a banking group company;
    • (e) F5a third-country institution (within the meaning of section 89JA of the Act (resolution of UK branches of third-country institutions) ) .
  • “Case 1”, “Case 2”, “Case 3” and “Case 4” have the meanings given in regulation 3;
  • “initial instrument” has the meaning given in regulation 6(6) ;
  • “relevant banking institution” has the meaning given in regulation 6(6) ;
  • “relevant persons” has the meaning given in regulation 5(2) ;
(2) References to sections of the Act include, as the context requires, those sections F6as applied with or without modifications by that Act as that Act has effect on the day on which the Bank Recovery and Resolution F12(Amendment) (EU Exit) Regulations 2018 come into force.in relation to Case 1, the bail-in compensation order in relation to Case 2, Case 3 or Case 4, the third party compensation order required to be included in the compensation scheme order or the resolution fund order by regulation 4.(1) These Regulations apply in the following cases.(2) Case 1 is where the Bank has made a resolution instrument in accordance with section 12A(2) of the Act the Bank has made a property transfer instrument in accordance with section 11(2) , 12(2) F7, 12ZA(3) or 44D(2) of the Act , andthe property transfer instrument makes special bail-in provision (in accordance with section 44B(1) of the Act the Bank has made a property transfer instrument in accordance with section 11(2) , 12(2) or 12ZA(3) of the Act which does not make special bail-in provision, butspecial bail-in provision is made (in accordance with section 44B(1) of the Act) in F8a supplemental property transfer instrument F9referred to in section 44B(2) (b) or in a property transfer instrument under section 43(2) (“Case 3”) .the Bank has made a third-country instrument in accordance with section 89H of the Act (recognition of third-country resolution actions) that third-country instrument, orany subsequent third-country instrument made under section 89I(4) (b) ,
  • the property transfer instrument, or
  • the third country instrument making provision which could be made in a property transfer instrument,
    • whether all relevant persons, a class of relevant persons or a particular relevant person should be paid compensation, andif compensation should be paid, what amount is to be paid.(2) In these Regulations, “relevant persons” means the pre-resolution shareholders and creditors (within the meaning of section 60B(3) of the Act ) .(1) A relevant compensation order must include the following provisions (subject to any necessary modifications) .(2) The independent valuer must assess the treatment (“the insolvency treatment”) which relevant persons would have received had the relevant banking institution entered insolvency immediately before the coming into effect of the initial instrument.(3) The independent valuer must assess the treatment (“the actual treatment”) which relevant persons have received, are receiving or are likely to receive (as specified in the order) if no (or no further) compensation is paid.(4) If the independent

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