On 1 August 2014, the FCA published proposals for changes to its Handbook required for transposition of the Bank Recovery and Resolution Directive (“ BRRD”), which member states are obliged to transpose into national laws by 31 December 2014 and apply from 1 January 2015. Both HM Treasury and the PRA launched consultations on the transposition of the BRRD last week. The FCA will be the competent authority for investment firms and certain group entities which it prudentially regulates. The PRA will be the competent authority for banks and larger investment firms. The FCA paper, which includes draft rules, covers: (i) requirements for recovery plans; (ii) requirements and conditions for notification of failure or likelihood of failure; (iii) information for resolution planning; (iv) intra-group financial support agreements; (v) contractual recognition of bail-in; and (vi) early intervention. Responses to the consultation are due by 1 October 2014.
The FCA paper is available at: http://www.fca.org.uk/static/documents/consultation-papers/cp14-15.pdf.