Treasury extends market abuse sunset clauses: Treasury has extended the "sunset clauses", which provide a wider definition of market abuse in the UK than the scope of the current Market Abuse Directive. The extension means sections 110(8), 118A(2) and 118A(3) and the definition of "regular user" in the Financial Services and Markets Act 2000 (FSMA) will remain in force until 3 July 2016, when the UK implements the new Market Abuse Regulation. However, section 118(4) FSMA, the "misuse of information" offences will expire on 31 December 2014. (Source: Treasury Extends Market Abuse Sunset Clauses)

Treasury publishes BRRD legislation: Treasury has published a set of draft legislation implementing various parts of the BRRD. Some of the legislation is made under the Banking Act 2009 (BA) as amended by the Banking Reform Act. The drafts consist of:

  • Regulations setting out provisions which must, or may, be included in a compensation order made under the BA following the exercise of the power to make special bail-in provision in respect of banks, banking group companies, investment firms or building societies;
  • an Order restricting the making of special bail-in provision in any instrument made by BoE under Part 1 of the BA;
  • an Order to:
    • ensure 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;
    • ensure that eligible deposits are given a higher priority within the class of preferential debts than other deposits; and
    • alter the priorities for the distribution of the assets of a building society on winding up; and
  • an Order, the lengthiest of the proposals, amending the BA to include a new Chapter 2, and amending FSMA in a number of respects, to implement several parts of the BRRD, including to give regulators appropriate powers.

Treasury also says it has published a transposition table, showing how the UK is implementing the BRRD. (Source: The BA (Mandatory Compensation Arrangements Following Bail-in) Regulations 2014the BA (Restriction of Special Bail-in Provision, etc.) Order 2014the Banks and Building Societies (Depositor Preference and Priorities) Order 2014 and the Bank Recovery and Resolution Order 2014)