Treasury is consulting on a few changes to UK law to strengthen implementation of the BRRD. The consultation covers:
- default event provisions and contractual write-down or conversion: BoE and Treasury would be able to prevent these from being switched off by the Banking Act rules on default event rights, where appropriate;
- stand-alone powers for the regulators to require the removal and replacement of directors and senior managers in situations where there has been a significant deterioration in the financial situation of a firm, or where there are serious infringements of law or administrative irregularities; and
- powers for BoE to act independently to resolve a UK branch of a third country institution.
Consultation closes on 26 February 2016. (Source: Treasury Consults on BRRD)