PS15/2: Recovery and Resolution Directive, including feedback on CP14/15 and final rules

Published: 16/01/2015     Last Modified: 30/08/2015

This Policy Statement reports on the main issues arising from Consultation Paper CP14/15 on the [Bank] Recovery and Resolution Directive (RRD). It also publishes final rules to transpose the RRD into the UK regulatory regime for the investment firms and certain group entities that we regulate prudentially and that fall within the scope of the RRD.

Why are we publishing this paper?

In August 2014, we published a Consultation Paper proposing changes to our Handbook that are required to transpose the [Bank] Recovery and Resolution Directive (RRD) into the UK regulatory regime for the investment firms that we regulate prudentially (IFPRU 730k firms), as well as certain group entities, that fall within the scope of the RRD.

In this Policy Statement, we summarise the feedback we received on the Consultation Paper and explain our response. We also set out our final rules transposing the RRD.

PS15/2: Recovery and Resolution Directive, including feedback on CP14/15 and final rules

Who should read this paper?

This Policy Statement will be of particular interest to:

  • investment firms that we regulate prudentially and that meet the definition in our Handbook of an IFPRU 730k firm (at present approximately 230 firms)
  • entities in a group that contains a 730k investment firm or credit institution
  • trade bodies representing investment firms

What are the next steps?

The rules on recovery and resolution will enter into force on 19 January 2015, with the exception of the rules on the contractual recognition of bail-in which will come into force on 1 January 2016.

The majority of the new rules have been incorporated into the FCA Handbook as amendments to the Prudential Sourcebook for Investment Firms (IFPRU). Some of the rules regarding the submission of information have been included in the Supervision manual (SUP). We have also added a number of new definitions to the glossary of definitions contained in our Handbook.

All IFPRU 730k firms and entities in a group that contains a 730k investment firm or credit institution should review the new rules and take any steps necessary to comply.

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