The following Financial Services guidance note provides comprehensive and up to date legal information covering:
The special resolution regime for banks is found in the Banking Act 2009 (BA 2009). This Act replaced previous emergency legislation that had been used to deal with the collapse of several major UK banks. BA 2009 was amended by sections 96-106 of the Financial Services Act 2012 (FSA 2012) (ie Part 8) and Schedule 17. FSA 2012 replaced the Financial Services Authority (FSA) with the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA). The amendments made to BA 2009 are substantive as well as consequential to reflect these two new regulatory bodies. However, the split in the regulatory functions is important within BA 2009 and the exercise of the SRR, it has a material impact as it determines which regulator can exercise certain SRR powers and with whom they are obliged to consult, as indicated below (BA 2009 s 7). It also affects the composition of bodies formed pursuant to BA 2009 (for example the liquidation committee in s 100).BA 2009B(SP)A 2008FSA 2012
A weak global economy and the failure of a number of financial institutions across the globe significantly influenced certain aspects of BA 2009. For example, it was clear that regulators and supervisors needed powers to make early interventions to troubled financial services firms as well as provide clear leadership where intervention is required. The BA 2009 is in eight parts and has more than 265 detailed sections.
The SRR provides a process for the UK regulatory bodies to address the situation where all
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