The Financial Markets Law Committee (FMLC) has published two letters it has sent to HM Treasury relating to the implementation of the Bank Recovery and Resolution Directive (BRRD).
In the first letter the FMLC wishes to clarify the treatment of set-off in the Banking Act 2009 (Restriction of Special Bail-in Provision, etc.) Order 2014 and in the Banking Act 2009: special resolution regime code of practice, published in 2015.
The second letter concerns the appointment of a temporary administrator as provided for in Article 29 of the BRRD. In the letter the FMLC states that it understands that HM Treasury is considering introducing specific measures to implement this power, and notes that in drafting provisions to confer this power, account should be taken of the widespread market practice of providing that the appointment of an administrator will constitute an event of default under financial contracts on market standard terms.