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Bank Resolution (Recapitalisation) Act 2025

Sections8Effects2

Statutes amended

2 affected Acts; 5 amendments in total. Each block shows the target Act's text with this Act's changes applied.

Financial Services and Markets Act 2000

3 amendments · open Act

  1. Section 2132 insertions

    213 The compensation scheme

    subsections (1) – (4) unchanged

    5 In making any provision of the scheme by virtue of subsection (3)(b), the regulators must take account of the desirability of ensuring that the amount of the levies imposed on a particular class of person are commensurate with the risks that class presents in relation to claims or recapitalisation payments within the meaning of section 214E, as the case may be, made under the scheme.
    5A The compensation scheme may not allow the scheme manager to impose levies on credit unions in relation to recapitalisation payments under section 214E.
    5B In subsection (5A), the reference to "credit unions" is to credit unions within the meaning of—
    a the Credit Unions Act 1979 (see section 31);
    b the Credit Unions (Northern Ireland) Order 1985 (S.I. 1985/1205 (N.I. 12)) (see Article 2).

    remaining subsections unchanged

  2. Section 223(3)1 insertion

    223 Management expenses

    subsections (1) – (2) unchanged

    3 "Management expenses" means expenses incurred, or expected to be incurred, by the scheme manager in connection with its functions under this Act other than those incurred—
    a in paying compensation;
    b as a result of any provision of the scheme made by virtue of section 215A(3) or (4), 216(3) or (4) or 217(1) or (6);
    c under section 214B or 214D;
    ca under section 214E;

    remaining paragraphs unchanged

  3. Section 223C(1)1 change

    223C Payments in error

    1 Payments made by the scheme manager in error may be provided for in setting a levy by virtue of section 213, 214A, 214B, 214E or 223B.

    remaining subsections unchanged

Banking Act 2009

2 amendments · open Act

  1. Section 3(1)1 insertion

    3 Interpretation: other expressions

    1 In this Part—

    other definitions unchanged

    "extraordinary public financial support" means—
    a State aid within the meaning of the Treaty on the Functioning of the European Union (or equivalent provision in any applicable international agreement); or
    b other financial support by a public financial institution, or
    c any amount in respect of which the Bank of England may require a recapitalisation payment under section 214E of the Financial Services and Markets Act 2000,
  2. Section 12AA(2)1 change

    12AA Bail-in: sequence of write-down and conversion of capital instruments and liabilities

    subsection (1) unchanged

    2 In this section—

    other definitions unchanged

    "the shortfall amount" means the amount by which the total loss-absorbing capacity of the bank immediately before the bail-in falls short of the recapitalisation amount less the amount of any recapitalisation payment required under section 214E of the Financial Services and Markets Act 2000 in relation to the bank in question.

    remaining subsections unchanged