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The Treasury launched a consultation on 17 December 2015 entitled ‘Bank Recovery and Resolution Directive (BRRD) implementation’. The consultation closed on 25 February 2016. This document summarises the responses submitted and outlines the government’s response.
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