Safeguards for shareholders, creditors and counterparties under the special resolution regime
Produced in partnership with Dominic McCahill of Skadden Arps Slate Meagher & Flom LLP
Safeguards for shareholders, creditors and counterparties under the special resolution regime

The following Restructuring & Insolvency guidance note Produced in partnership with Dominic McCahill of Skadden Arps Slate Meagher & Flom LLP provides comprehensive and up to date legal information covering:

  • Safeguards for shareholders, creditors and counterparties under the special resolution regime
  • Brexit impact
  • Reforms
  • Publication and approval
  • Reporting and accountability
  • Compensation
  • Independent valuer and appeals

Brexit impact

As of exit day (31 January 2020) the UK is no longer an EU Member State. However, in accordance with the Withdrawal Agreement, the UK has entered an implementation period, during which it continues to be subject to EU law. References to exit day in many Brexit SIs are to be read as reference to IP completion day (Implementation Period completion day, defined in clause 39 as 31 December 2020 at 11.00 pm) (unless that provision is expressly disapplied by the SI in question). For further details, see News Analysis: Brexit—impact of the Withdrawal Agreement and European Union (Withdrawal Agreement) Act 2020 for R&I lawyers and Brexit Bulletin—key updates, research tips and resources.

The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018, SI 2018/1394 have an impact. For further details see Practice Note: Impact of Brexit: BRRD—quick guide.

Reforms

The Bank Recovery and Resolution Directive 2014/59/EU (BRRD) creates a harmonised recovery and resolution framework for credit institutions and investment firms in the EU. Member States were required to adopt and publish the necessary laws and regulations in order to transpose the Directive by 31 December 2014, and to apply them from 1 January 2015.

SI 2014/3329 came into force on 1 January 2015 to implement the BRRD, and makes a number of amendments