The Financial Law and Insolvency Law Committees of the City of London Law Society (CLLS) have published a joint response to HM Treasury’s consultation on the implementation of the bail-in powers that are introduced by the Financial Services (Banking Reform) Act 2013 (Banking Reform Act).
The joint response contains the following sections:
- section B1 – on the relationship between the Banking Reform Act, statutory instruments made under it and the Bank Recovery and Resolution Directive (BRRD), creditor hierarchy on bail-in, preferential creditors, netting, set-off and protected arrangements, and valuations, bail-in and compensation;
- section B2 – on the latest draft of the Banking Act 2009 (Mandatory Compensation Arrangements Following Bail-in) Regulations 2014;
- section B3 – on the Banking Act 2009 (Restriction of Special Bail-in Provision, etc.) Order 2014; and
- section B4 – on miscellaneous matters, including that the CLLS is aware of concerns expressed by capital markets lawyers on the inter-relationship between capital markets transactions and the banking group companies provisions to be included in the new section 81 of the Banking Act 2009.
