Treasury is consulting on five draft statutory instruments amending the Special Resolution Regime (SRR) under the Banking Act 2009. The Financial Services Act 2012 widened the scope of the SRR to bring within it investment firms, central counterparties, and undertakings within the same group as a failing entity. The changes are not yet in force but Treasury is consulting in advance on secondary legislation which will:
- exclude some investment firms from the SRR, so it will cover only firms required to hold initial capital of €730,000;
- set out the conditions for use of the SRR in relation to group undertakings by specifying which undertakings will count as "banking group companies"; and
- amend existing legislation to introduce partial property transfer safeguards, set out the "no creditor worse off" safeguards and amend the Bank Administration Procedure rules consequent on the wider scope of the SRR.
Treasury asks for comments by 21 November. (Source: Treasury Consults on SRR Extension)