UK implementation of the Bank Recovery and Resolution Directive
Produced in partnership with DLA Piper UK LLP
UK implementation of the Bank Recovery and Resolution Directive

The following Financial Services guidance note Produced in partnership with DLA Piper UK LLP provides comprehensive and up to date legal information covering:

  • UK implementation of the Bank Recovery and Resolution Directive
  • What is the BRRD?
  • Firms and entities affected by the BRRD
  • What was the situation in the UK pre-BRRD?
  • Overview of the UK implementation of the BRRD
  • Amendments to the role of UK authorities
  • Amendments to primary and secondary legislation
  • Amendments to the PRA Recovery and Resolution Framework
  • Amendments to the FCA Recovery and Resolution Framework

The Banking Resolution and Recovery Directive (2014/59/EU) (BRRD) outlines the European Union (EU) recovery and resolution process for credit institutions and investment firms in EU Member States. This Practice Note provides an overview of the UK's implementation of the BRRD, including the changing role of the Bank of England, the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), and the amendments made to primary and secondary legislation, the PRA rules and the FCA rules.

What is the BRRD?

The BRRD establishes a comprehensive recovery and resolution regime for EU credit institutions and investment firms. The regime was created following the bank bailouts of the 2008 financial crisis, and their subsequent impact on governmental budgets across the EU. The aim of the regime is to provide EU Member States with the tools and powers necessary to handle the failure of such firms, and to attempt to avoid the high public costs associated with bailouts.

The BRRD aims to achieve this through three main channels:

  1. Improving early analysis and oversight. The BRRD requires relevant firms and entities to prepare recovery plans, and requires the relevant authorities to prepare resolution plans. Regarding resolution plans, it also empowers authorities to demand certain information of the relevant firms and entities and increases the powers available to them to address