On 19 December 2024, the Bank of England (BoE) issued a Statement of Policy setting out how it expects to use its power to direct a ‘relevant person’ to address impediments to resolvability under section 3A of the Banking Act.
For these purposes ‘relevant person’ means:
- an institution authorised for the purpose of the Financial Services and Markets Act 2000 by the Prudential Regulation Authority (PRA) or Financial Conduct Authority (FCA);
- a parent of such an institution which (i) is a financial holding company or a mixed financial holding company; and (ii) is established in, or formed under the law of any part of, the United Kingdom; or (iii) a subsidiary of such an institution or of such a parent which (i) is a financial institution authorised by the PRA or FCA; and (ii) is established in, or formed under the law of any part of, the United Kingdom.
The Statement of Policy covers the statutory framework, the BoE’s approach to using the power of direction, decision-making and right of appeal.