Secondary legislation for Non-Bank resolution regimes

Today (26 September 2013) the government has published a consultation on the secondary legislation which will underpin the extension of the Special Resolution Regime to include investment firms, banking group companies and clearing houses.

The Financial Services Act 2012 amended the Banking Act 2009 to widen the Special Resolution Regime. The relevant amendments to the Banking Act 2009 will commence once the secondary legislation is made.

The secondary legislation will:

• set out which investment firms will be captured in the Special Resolution Regime
• outline the specific conditions in which an entity will be considered a banking group company
• establish safeguards around partial property transfers
• extend third party compensation arrangements to investment firms and banking group companies
• amend insolvency rules in order to extend the Bank Administration procedure to investment firms and banking group companies