Treasury confirms extension to benchmark abuse offence: Treasury confirmed it will extend the current criminal offence relating to LIBOR manipulation to seven further benchmarks:

  • WM/Reuters 4pm London Fix;
  • Sterling Overnight Index Average (SONIA) and the Repurchase Overnight Index Average (RONIA);
  • ISDAFix;
  • London Gold Fixing and the LMBA Silver Price; and
  • ICE Brent index.

It has published draft legislation which it intends to come into force on 1 April 2015. (Source: Treasury Confirms Extension to Benchmark Abuse Offence and Draft Order on Benchmark Offence Extension)

Treasury publishes bail-in and BRRD changes: Treasury has published several statutory instruments relating to bail-in powers and changes in law to implement the BRRD:

  • the Banking Act 2009 (Mandatory Compensation Arrangements Following Bail-in) Regulations 2014 took effect on 1 January 2015 and set out provisions which must, or may, be included in a compensation order made under the Banking Act as amended by the Banking Reform Act following the exercise of the power to make special bail-in provision in respect of banks, banking group companies, investment firms or building societies;
  • the Banking Act 2009 (Restriction of Special Bail-in Provision etc.) Order 2014 also took effect on 1 January 2015 and imposes restrictions on the making of special bail-in provision to comply with the BRRD;
  • the Building Societies (Bail-in) Order 2014 takes effect on 10 January 2015 and modifies the Banking Act's special resolution regime provisions following the application to building societies of the bail-in stabilisation option introduced by the Banking Reform Act;
  • the Bank Recovery and Resolution Order 2014 took effect on 1 January 2015 and is the main piece of legislation implementing the BRRD into UK law. Much of the Order amends the Banking Act to align it with the BRRD and create the necessary new regulatory powers, but there are also some changes to the Financial Services and Markets Act 2000;
  • the Bank Recovery and Resolution (No. 2) Order 2014 partly implements the BRRD and takes effect mainly on 10 January 2015 but partly on 1 January 2016. It sets out procedural and other requirements with respect to planning and taking measures for the purpose of restoring the financial position of credit institutions and investment firms and certain related companies; and achieving one or more resolution objectives; and
  • the Banks and Building Societies (Depositor Preference and Priorities) Order 2014 also partly implements the BRRD and ensures that both deposits which are eligible for compensation under the Financial Services Compensation Scheme (eligible deposits) and other deposits which would be eligible deposits but for the fact that they are made in branches of UK banks outside the EEA are treated as preferential debts, and that eligible deposits get a higher priority within the class of preferential debts than other deposits. The Order also alters the priorities for the distribution of the assets of a building society on winding up.

(Source: Banking Act 2009 (Mandatory Compensation Arrangements Following Bail-in) Regulations 2014Banking Act 2009 (Restriction of Special Bail-in Provision etc) Order 2014Building Societies (Bail-in) Order 2014Bank Recovery and Resolution Order 2014Bank Recovery and Resolution (No. 2) Order 2014 and Banks and Building Societies (Depositor Preference and Priorities) Order 2014)