Special resolution regime options

The following Restructuring & Insolvency practice note provides comprehensive and up to date legal information covering:

  • Special resolution regime options
  • Special resolution regime toolkit
  • Transfer to a private sector purchaser
  • Application to building societies
  • Remnant bank
  • Transfer to a bridge bank
  • Application to building societies
  • Management
  • Remnant bank
  • Transfer to an asset management vehicle
  • More...

Special resolution regime options

Special resolution regime toolkit

When using the special resolution regime (SRR), the appropriate tool for the resolution or termination (or combination thereof) of the failed bank must be selected. Following implementation of the Financial Services Act 2012 and the Bank Recovery and Resolution Directive 2014/59/EU (EU BRRD) through secondary legislation, the SRR also applies with modifications to building societies, investment firms and recognised central counterparties.

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.

The options, which in appropriate circumstances may be used singly or in combination with each other and/or optionally with supplemental, reverse and/or onwards transfers, are as follows:

  1. transfer by the Bank of England of a bank of all or some of its business to a private sector purchaser

  2. transfer by the Bank of England of all or part of the business of a bank to a bridge bank

  3. transfer by the Bank of England of all or part of the business of a bank or a bridge bank to an asset management vehicle

  4. write down and conversion of capital instruments and liabilities by the Bank of England (bail-in)

  5. transfer by the Treasury of a bank into temporary public ownership

In addition and while they are not stabilisation options, the following procedures

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