Consultation outcome

Bail-in powers implementation (including draft secondary legislation)

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government

This consultation has concluded

Download the full outcome

Bail-in powers implementation: summary of responses

Detail of outcome

This document summaries the responses received for the consultation on the implementation of bail-in powers.

The 3 draft orders consulted on were:

  • the Banking Act (Restriction of Special Bail-in Provision etc) Order
  • the Banking Act (Mandatory Compensation Arrangements Following Bail-in) Regulations
  • the Building Societies (Bail-in) Order

These draft orders and regulations restrict the use of bail-in powers in relation to certain financial contracts, require arrangements to be made for compensation following bail-in, and apply the bail-in tool to building societies. These instruments are being made as part of the UK’s transposition of the Bank Recovery and Resolution Directive. They will come into force on 1 January 2015.

Original consultation

Summary

A consultation on the implementation of the bail-in powers introduced by the Financial Services (Banking Reform) Act 2013

This consultation ran from
to

Consultation description

This consultation seeks views on three draft Orders required for bail-in implementation. They are:

  • the application of bail-in to building societies
  • the safeguards to protect certain financial arrangements from bail-in powers
  • the mandatory compensation arrangements to ensure no creditor is left in a worse position following bail-in that they would have been in insolvency

The consultation also seeks industry views on three other issues:

  • a proposal to align the creditor hierarchy of banks and building societies through early transposition of the depositor preference provisions on the Bank Recovery and Resolution Directive (BRRD)
  • a proposal to implement changes to the Financial Collateral Arrangements Directive (FCAD) as set out in the BRRD
  • applying the bail-in tool to banking group companies

Documents

The Building Societies (Bail-in) Order 2014: draft secondary legislation

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The Banking Act 2009 (Restriction of Special Bail-in Provision, etc.) Order 2014: draft secondary legislation

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The Banking Act 2009 (Mandatory Compensation Arrangements Following Bail-in) Regulations 2014: draft secondary legislation

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Published 13 March 2014
Last updated 12 December 2014 + show all updates
  1. Summary of responses published
  2. First published.