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.

View City of London Law Society Financial Law Committee and Insolvency Law Committee response to the open consultation (the “Consultation”) on the implementation of Bail-in powers issued by HM Treasury on 13 March 2014, 14 May 2014