The PRA has published Consultation Paper CP13/14: Implementing the Bank Recovery and Resolution Directive (CP13/14).
In CP13/14, the PRA sets out its approach to implementing the Bank Recovery Resolution Directive (BRRD) provisions on:
- recovery planning;
- resolution planning;
- intra-group financial support agreements;
- notifications of failure or likely failure;
- contractual recognition of the bail-in tool; and
- cost-benefit analysis
The PRA intends to replace its existing rules on resolution and recovery planning (set out in the Recovery and Resolution part of the PRA Rulebook) with three new parts: Recovery Plans, Resolution Pack and Group Financial Support. It also proposes to make two other new Parts: Contractual Recognition of Bail-in and Bank Recovery and Resolution Directive Transitional, with amendments to the existing Notification Part and the supervisory statement on recovery planning (SS18/13).
The deadline for responses to the CP13/14 is 19 September 2014.
The PRA will publish a policy statement with a summary of feedback, final rules and updated supervisory statement by 31 December 2014. The new rules will presumably take effect on 1 January 2015, the date on which Member States are required to apply the majority of the provisions in the BRRD.
View CP13/14: Implementing the Bank Recovery and Resolution Directive, 24 July 2014