Consultation on the implementation of the Bank Recovery and Resolution Directive (BRRD)

The Bank Recovery and Resolution Directive (BRRD) establishes a common approach across the EU to the recovery and resolution of banks and investment firms. Following a consultation published in July 2014, legislation was introduced to transpose the BRRD.

The government is now seeking views on a small number of changes that would clarify and strengthen the UK’s transposition of the BRRD in the following areas:

• default event provisions and contractual write-down or conversion
• 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
• powers for the Bank of England to act independently to resolve a UK branch of a third country institution