Administration procedures for UK banks, building societies and investment banks
Administration procedures for UK banks, building societies and investment banks

The following Financial Services guidance note provides comprehensive and up to date legal information covering:

  • Administration procedures for UK banks, building societies and investment banks
  • Banking Act 2009 regime
  • Bank administration regime
  • Building society special administration
  • Administration and insolvency regimes for investment banks under the Investment Bank Special Administration Regulations 2011
  • Investment bank special administration
  • Special administration (bank insolvency)
  • Special administration (bank administration)

This Practice Note provides high-level guidance on the administration regimes for UK banks, investment firms, building societies and investment banks under:

  1. the Banking Act 2009 (BA 2009)

  2. the Building Societies (Insolvency and Special Administration) Order 2009, SI 2009/805 (Building Societies Order 2009), and

  3. the Investment Bank Special Administration Regulations 2011, SI 2011/245 (IB Regulations 2011)

Banking Act 2009 regime

BA 2009 was intended to improve the resilience of the UK financial systems, and support financial stability by strengthening depositor protection and providing mechanisms for dealing with banks in financial difficulties.

Among other things, BA 2009 introduced a special resolution regime (SRR).The SRR grants powers to HM Treasury, the Prudential Regulation Authority (PRA), the Financial Conduct Authority (FCA) and the Bank of England (BoE) for dealing with banks, banking group companies, investment firms, building societies and central counterparties (CCPs) in financial difficulties.

The SRR includes a bank insolvency regime and a bank administration regime. In addition, BA 2009 made provision for special administration regimes for building societies and investment banks.

For information on the SRR, see Practice Notes:

  1. Special resolution regime for banks and building societies—rationale, scope, application and interpretation

  2. Special resolution regime options

  3. Powers of the authorities under the special resolution regime, and

  4. Safeguards for shareholders, creditors and counterparties under the special resolution regime

Bank administration regime

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