The FCA has transposed Article 55 of the Recovery and Resolution Directive (RRD) through the rules in IFPRU 11.6. The unmodified rules require firms and holding companies to include a term in the provisions governing certain third-country law liabilities under which the creditor recognises and agrees that the liability may be subject to write down and conversion powers by a resolution authority.
The FCA requirement comes into force from 1 January 2016. The requirement applies neither to liabilities excluded from the scope of bail-in by the RRD, nor to preferred deposits (of natural persons or micro, small or medium-sized enterprises).
This modification of IFPRU 11.6.3R disapplies the rules in circumstances where compliance with them in respect of a certain liabilities is impracticable.
We intend to consult on amending IFPRU 11.6 in this way. The modification is being provided to delay the rules’ application to these liabilities where impracticable while this consultation is prepared and carried out.
Apply for this modification
We have set out the changes in the modification direction.This modification is valid until the earlier of 30 June 2016, or when the relevant rules are amended or revoked.
If you want to take advantage of this modification, you should read the direction and contact the Waivers Team with a request for the modification at:
Central Waivers Team
Financial Conduct Authority
25 North Colonnade
London E14 5HS
We will confirm in writing whether the request has been granted and will publish the approved modification direction on the Financial Services Register.