Published on 21 December 2020
Bank Recovery and Resolution Directive II – PS28/20
Overview
This Prudential Regulation Authority (PRA) Policy Statement (PS) provides feedback to responses to Consultation Paper (CP) 18/20 ‘Bank Recovery and Resolution Directive II’. It also contains the PRA’s final policy, as follows:
- amended Contractual Recognition of Bail-in (CROB) Part of the PRA Rulebook (Appendix 1); and
- amended Stay in Resolution (Stays) Part of the PRA Rulebook (Appendix 2).
This PS is relevant to Bank Recovery and Resolution Directive (BRRD) undertakings to which the CROB Part and Stays Part apply (firms).
Summary of responses
The PRA received one response to the CP. The respondent requested clarification regarding the PRA’s proposal to amend the definition of ‘crisis management measure’ in the Stays Part. Details of the response and the PRA’s feedback are set out in Chapter 2 of the PS. The PRA has considered that request and decided to publish final policy as consulted on.
Implementation
The policy set out in this PS has been designed in the context of the UK’s withdrawal from the European Union and entry into the transition period. During the transition period, the UK remains subject to European law and must transpose Directives that become applicable before IP completion day. The PRA policy applicable only during the end of the transition period and ceasing to have effect on IP completion day will not need to be amended under the EU (Withdrawal) Act 2018 (EUWA). Therefore, no such EUWA changes will be made to the Stays Part, which will be in place for four days.
The policy set out in this PS that will come into effect at the end of the transition period (on IP completion day) will need to be amended under the EU (Withdrawal) Act 2018 (EUWA). These changes will be made separately by the PRA Rulebook (EU Exit) Instrument 2020.
Policy Statement 28/20 Opens in a new window