Change 1 Article Choose an article Title and introductory text 1 Overview 2 Interpretation: “bank” 3 Interpretation: other expressions 3A Removal of impediments to the exercise of stabilisation powers etc 3B Safeguards relating to directions under section 3A 4 Special resolution objectives 5 Code of practice 6 Code of practice: procedure 6A Cases where mandatory write-down, conversion, etc applies 6B Mandatory write-down, conversion, etc of capital instruments and liabilities 6C Mandatory reduction instruments: implementation of requirements of section 6B 6D Mandatory reduction instruments: supplementary matters 6E Pre-resolution valuation 7 General conditions 7A Effect on other group members, financial stability in UK etc 8 Specific Condition: private sector purchaser, bridge bank or asset management vehicle 8ZA Specific conditions: asset management vehicle 8A Specific condition: bail-in 9 Specific conditions: temporary public ownership 10 Banking Liaison Panel 11 Private sector purchaser 11A Private sector purchaser: marketing 12 Bridge bank 12ZA Asset management vehicle 12A Bail-in option 12AA Bail-in: sequence of write-down and conversion of capital instruments and liabilities 12B Bail-in administrators 13 Temporary public ownership 14 Interpretation: “securities” 15 Share transfer instrument 16 Share transfer order 17 Effect 18 Continuity 19 Conversion and delisting 20 Directors and senior managers 21 Ancillary instruments: production, registration, &c. 22 Termination rights, &c. 23 Incidental provision 24 Procedure: instruments 25 Procedure: orders 26 Supplemental instruments 26ZA Onward share transfer instruments 26A ... reverse share transfer instruments 27 Supplemental orders 28 Onward transfer 29 Reverse share transfer orders 29A Interpretation: “resolution company” 30 Resolution company: share transfers 31 Resolution company: reverse share transfer 32 Interpretation: general 33 Property transfer instrument 34 Effect 35 Transferable property 36 Continuity 36A Directors and senior managers 37 Licences 38 Termination rights, &c. 39 Foreign property 39A Banks which are recognised central counterparties 39B Property transfer instrument: delisting 40 Incidental provision 41 Procedure 41A Transfer of property subsequent to resolution instrument 42 Supplemental instruments 42A Private sector purchaser: reverse property transfer 43 Onward transfer 44 Resolution company: reverse property transfer 44A Bail in: reverse property transfer 44B Property transfer instruments: special bail-in provision 44BA Property transfer instruments and special bail-in provision: supplementary matters 44C Report on special bail-in provision 44D Bridge bank: supplemental property transfer powers 44E Bridge bank: supplemental reverse property transfer powers 45 Temporary public ownership: property transfer 46 Temporary public ownership: reverse property transfer 47 Restriction of partial transfers 48 Power to protect certain interests 48A Creation of liabilities 48B Special bail-in provision 48C Meaning of “protected deposit” 48D General interpretation of section 48B 48E Report on special bail-in provision 48F Power to amend definition of “excluded liabilities” 48G Priority between creditors 48H Business reorganisation plans 48I Bail-in administrator: further functions 48J Bail-in administrator: supplementary 48K Bail-in administrator: money 48L Powers in relation to securities 48M Termination rights, etc 48N Directors and senior managers 48O Directions in or under resolution instrument 48P Orders for safeguarding certain financial arrangements 48Q Continuity 48R Execution and registration of instruments etc 48S Resolution instruments: general matters 48T Procedure 48U Supplemental resolution instruments 48V Onward transfer 48W Reverse transfer 48WA Bail-in option: recovery of expenses 48X Replacement of Bank’s provisional valuation 48Y Consequences of a replacement valuation 48Z Termination rights etc 49 Orders 50 Sale to private sector purchaser 51 Transfer to temporary public ownership 52 Transfer to resolution company 52A Bail-in option 53 Onward and reverse transfers etc 54 Independent valuer: compensation scheme order or bail-in compensation order 55 Independent valuer: supplemental 56 Independent valuer: money 57 Valuation principles 58 Resolution fund 59 Third party compensation: discretionary provision 60 Third party compensation: mandatory provision 60A Further mandatory provision: bail-in provision 60B Principle of no less favourable treatment 61 Sources of compensation 62 Procedure 62A Independent valuer: sections 6E and 48X 62B Resolution administrator 62C Resolution administrator: further functions 62D Resolution administrator: supplementary 62E Resolution administrator: money 63 General continuity obligation: property transfers 64 Special continuity obligations: property transfers 65 Continuity obligations: onward property transfers 66 General continuity obligation: share transfers 67 Special continuity obligations: share transfers 68 Continuity obligations: onward share transfers 69 Continuity obligations: consideration and terms 70 Continuity obligations: termination 70A Suspension of obligations 70B Restriction of security interests 70C Suspension of termination rights 70D Suspension: general provisions 71 Pensions 72 Enforcement 73 Disputes 74 Tax 75 Power to change law 76 International obligation notice: general 77 International obligation notice: resolution company 78 Public funds: general 78A Pre-conditions for financial assistance: duty of Bank to give information 79 Public funds: resolution company 79A Private sector purchaser: report 80 Resolution company: report 80A Transfer for bail-in purposes: report 81 Temporary public ownership: report 81A Accounting information to be included in reports under sections 80, 80A(2)(b) and 81 81AA Cases where mandatory write-down, conversion etc applies: banking group companies 81B Sale to commercial purchaser and transfer to bridge bank 81ZZBA Sale to commercial purchaser and transfer to bridge bank: supplemental powers in relation to certain holding companies 81ZZBB Assessment of conditions for section 81ZZBA 81ZBA Transfer to asset management vehicle 81ZBB Transfer to asset management vehicle: supplemental powers in relation to certain holding companies 81ZBC Assessment of conditions for section 81ZBB 81BA Bail-in option 81BB Bail-in option: supplemental powers in relation to certain holding companies 81BC Assessment of conditions for section 81BB 81C Sections 81AA to 81ZBB: supplemental 81CA Section 81BA and Section 81BB: supplemental 81D Interpretation: “banking group company” &c. 82 Temporary public ownership 83 Supplemental 83ZA Information 83ZB Reports by skilled persons 83ZC Appointment of persons to carry out general investigations 83ZD Appointment of person to carry out investigations in particular cases 83ZE Investigations etc in support of foreign resolution authorities 83ZF Investigations: general 83ZG Powers of persons appointed under section 83ZC 83ZH Powers of persons appointed as a result of section 83ZD 83ZI Admissibility of statements made to investigators 83ZJ Information and documents: supplemental provision 83ZK Protected items 83ZL Entry of premises under warrant 83ZM Retention of documents obtained under section 83ZL 83ZN Offences etc 83ZO Prosecution of offences under section 83ZN 83ZP Offences under section 83ZN by bodies corporate etc 83ZQ Injunctions: prevent failure to comply with relevant requirement 83ZR Regulatory sanctions 83ZS Determination of sanctions 83ZT Procedure: warning notice 83ZU Procedure: decision notice 83ZV Procedure: general 83ZW Appeal 83ZX Injunctions: failure to comply with certain section 83ZR sanctions 83ZY Publication 83ZZ Co-operation 83Z1 Delegation of enforcement functions 83Z2 Enforcement: share transfer orders 83A Modifications of Part 84 Application of Part 1: general 84ZA Bridge bank: share transfer instruments 84A Bail-in option: building societies 84B Further provision: conversion of building society into company 84C Further provision: transfer of business of building society to company 84D Transfer to a bridge bank or Bail-in option: modifications of this Act and other legislation 85 Temporary public ownership 86 Distribution of assets on dissolution or winding up 87 Interpretation 88 Consequential provision 89 Credit unions 89A Application to investment firms 89B Application to recognised central counterparties 89C Recognised central counterparty rules 89D Recognised central counterparty membership 89E Recognition of transferee company 89F Recognised central counterparty compensation orders 89G Interpretation: “recognised central counterparty” &c. 89H Recognition of third-country resolution actions 89I Effect of recognition of third-country resolution action by Bank of England 89J Third-country instruments: supplementary provision 89JA Resolution of UK branches of third-country institutions 89K Insolvency Proceedings 89L Restrictions on disclosure of confidential information 89M Giving of notices, documents etc under Part 1 90 Overview 91 Interpretation: “bank” 92 Interpretation: “the court” 93 Interpretation: other expressions 94 The order 95 Application 96 Grounds for applying 97 Grounds for making 98 Commencement 99 Objectives 100 Liquidation committee 101 Liquidation committee: supplemental 102 Objective 1: (a) or (b)? 103 General powers, duties and effect 104 Additional general powers 105 Status of bank liquidator 106 Term of appointment 107 Resignation 108 Removal by court 109 Removal by creditors 110 Disqualification 111 Release 112 Replacement 113 Company voluntary arrangement 114 Administration 115 Dissolution 116 Dissolution: supplemental 117 Bank insolvency as alternative order 118 Voluntary winding-up 119 Exclusion of other procedures 120 Notice to PRA of preliminary steps 120A Notice to the regulators and the Bank of England of preliminary steps 121 Disqualification of directors 122 Application of insolvency law 123 Role of FSCS 124 Transfer of accounts 125 Rules 126 Fees 127 Insolvency Services Account 128 Evidence 129 Co-operation between courts 129A Banks not regulated by PRA 130 Building societies 131 Credit unions 132 Partnerships 133 Scottish partnerships 134 Northern Ireland 135 Consequential provision 136 Overview 137 Objectives 138 Objective 1: supporting private sector purchaser or resolution company 139 Objective 1: duration 140 Objective 2: “normal” administration 141 Bank administration order 142 Application 143 Grounds for applying 144 Grounds for making 145 General powers, duties and effect 145A Power to direct bank administrator 146 Status of bank administrator 147 Administrator's proposals 148 Sharing information 149 General application of this Part 150 Resolution company to private purchaser 151 Property transfer from resolution company 152 Property transfer from temporary public ownership 152A Property transfer from transferred institution 153 Successful rescue 154 Winding-up or voluntary arrangement 155 Disqualification of directors 156 Application of other law 157 Other processes 157A Banks not regulated by PRA 158 Building societies 159 Credit unions 159A Application to investment firms 160 Rules 161 Fees 162 Evidence 163 Partnerships 164 Scottish partnerships 165 Co-operation between courts 166 Interpretation: general 167 Northern Ireland 168 Consequential provision 169 Overview 171 Special resolution regime 173 Borrowing from National Loans Fund 174 Procedure for claims 175 Rights in insolvency 176 Information 177 Payments in error 178 Regulations 179 Delegation of functions 180 Functions under this Act 181 Overview 182 Interpretation: ... key terms 183 Interpretation: other expressions 184 Recognition order : payment system 184A Recognition order: DSA service provider 185 Recognition criteria : payment system 185A Recognition criteria: DSA service provider 186 Procedure 186A Amendment of recognition order 187 De-recognition 188 Principles 189 Codes of practice 190 System rules 190A Service provider rules 191 Directions 192 Role of FCA and PRA 192A Power of Bank to require FCA to refrain from specified action 193 Inspection 194 Inspection: warrant 195 Independent report 196 Compliance failure 197 Publication 198 Penalty 199 Closure 200 Management disqualification 201 Warning 202 Appeal 202A Injunctions 203 Fees 203A Records 203B Annual report 203C Policy statement 204 Information 205 Pretending to be recognised 206 Saving for informal oversight 206A Service providers 206AA Service providers connected with a recognised payment system that uses digital settlement assets 206B International obligations 206C Overview and purpose 206D Policy statement 206E Interpretation: “wholesale cash distribution” 206F Interpretation: other terms 206G Wholesale cash oversight orders 206H “Market significance” and “systemic significance” 206I Procedure 206J Amendment or revocation of a wholesale cash oversight order 206K Principles 206L Codes of practice 206M Directions 206N Role of the FCA, PRA and Payment Systems Regulator 206O Inspection 206P Inspection: warrant 206Q Independent report 206R Compliance failure 206S Publication 206T Penalty 206U Closure 206V Management disqualification 206W Warning 206X Appeal 206Y Injunctions 206Z Fees 206Z1 Records 206Z2 Annual report 206Z3 Requirement to provide information 206Z4 Disclosure of information 206Z5 Saving for informal oversight 206Z6 Power to disapply regulation and enforcement provisions 207 Overview 208 “Banknote” 209 “Issue” 210 “Authorised bank” 211 “Commencement” 212 Repeal of old authorising enactments 213 Authorisation to issue banknotes 214 Consequential repeals and amendments 214A Power to designate banks as “authorised banks” 215 Banknote regulations 216 Banknote rules 217 Backing assets 218 Information 219 Ceasing the business of issuing notes 220 Insolvency, &c. 221 Offence: unlawful issue 222 Financial penalty 223 Termination of right to issue 224 Application to court 225 Organisation 226 Discretionary functions 227 Exemption 228 Consolidated Fund 229 National Loans Fund 230 “Financial institution” 231 Reports 232 Definition 233 Insolvency regulations 234 Regulations: details 235 Regulations: procedure 236 Review 237 Compensation: valuer 238 UK financial stability 239 Number of directors 240 Meetings 241 Chair of court 242 Quorum 243 Tenure 244 Immunity 245 Weekly return 246 Information 247 Bank of England Act 1946 248 Variation of permission 249 Functions 250 Information 251 Financial assistance to building societies 252 Registration of charges 253 Registration of charges: Scotland 254 Abolition for cheques 255 Regulations 256 Supplemental 256A State aid 256B Bank of England” and “Prudential Regulation Authority” 257 “Financial assistance” 258 “Enactment” 258A Investment firm” 259 Statutory instruments 260 Money 261 Index of defined terms 262 Repeal 263 Commencement 264 Extent 265 Short title
What to do with it
As published
120A Notice to the regulators and the Bank of England of preliminary steps
(1) Section 120 shall apply to relevant firms as it applies to banks, except that for this purpose—
(a) subsections (5) and (10) of that section have effect as if any reference to the PRA were a reference to the appropriate regulator, and
(b) subsection (7) has effect as if for paragraph (b) there were substituted—
(b) the Bank of England has informed the person who gave the notice that it does not intend to exercise a stabilisation power under Part 1 in relation to the firm (and Condition 5 has been met, if applicable).
(2) In this section—
(a) “relevant firm” means—
(i) a financial holding company, investment firm, mixed financial holding company or a mixed activity holding company, or
(ii) a financial institution which is a subsidiary undertaking of a bank or an entity within paragraph (a)(i);
(b) “financial holding company” has the meaning given in Article 4.1(2) of the capital requirements regulation (within the meaning of section 3);
(c) “financial institution” has the meaning given in Article 4.1(26) of the capital requirements regulation (within the meaning of section 3);
(d) “mixed activity holding company” has the meaning given in Article 4.1(22) of the capital requirements regulation (within the meaning of section 3);
(e) “mixed financial holding company” has the meaning given in Article 4.1(21) of the capital requirements regulation (within the meaning of section 3).
(3) In this section, references to “the appropriate regulator” are—
(a) to the PRA, in relation to a PRA-authorised person; and
(b) to the FCA in relation to any other authorised person.
Your wording
Your change, as a redline
120A Notice to the regulators and the Bank of England of preliminary steps
(1) Section 120 shall apply to relevant firms as it applies to banks, except that for this purpose—
(a) subsections (5) and (10) of that section have effect as if any reference to the PRA were a reference to the appropriate regulator, and
(b) subsection (7) has effect as if for paragraph (b) there were substituted—
(b) the Bank of England has informed the person who gave the notice that it does not intend to exercise a stabilisation power under Part 1 in relation to the firm (and Condition 5 has been met, if applicable).
(2) In this section—
(a) “relevant firm” means—
(i) a financial holding company, investment firm, mixed financial holding company or a mixed activity holding company, or
(ii) a financial institution which is a subsidiary undertaking of a bank or an entity within paragraph (a)(i);
(b) “financial holding company” has the meaning given in Article 4.1(2) of the capital requirements regulation (within the meaning of section 3);
(c) “financial institution” has the meaning given in Article 4.1(26) of the capital requirements regulation (within the meaning of section 3);
(d) “mixed activity holding company” has the meaning given in Article 4.1(22) of the capital requirements regulation (within the meaning of section 3);
(e) “mixed financial holding company” has the meaning given in Article 4.1(21) of the capital requirements regulation (within the meaning of section 3).
(3) In this section, references to “the appropriate regulator” are—
(a) to the PRA, in relation to a PRA-authorised person; and
(b) to the FCA in relation to any other authorised person.
A proposal here is not law. Support on Solon is evidence that people want the change; the official route says what it takes to make it law.