On 14 July 2025, the Bank Recovery and Resolution (Amendment) Regulations 2025 were made.

These Regulations come into force on 1 January 2026 and make certain changes to the Bank Recovery and Resolution (No. 2) Order 2014 (the 2014 Order) which relate to the requirement for the Bank of England (BoE) to set a minimum requirement for own funds and eligible liabilities (MREL) for relevant financial institutions.

Specifically, the Regulations:

• Update the 2014 Order to reflect the fact the UK is no longer in the EU by requiring that, when setting the MREL for a firm, the BoE must take into account the relevant assessment criteria set out in the BoE’s Statement of Policy on MREL, rather than such criteria in any technical standards set out in assimilated law.
• Remove the BoE’s related power to make technical standards relating to the assessment criteria for determining MREL requirements and clarifies that the BoE may set firms a transitional MREL requirement for a transitional period, and that it is not limited in the number of times it may do this in respect of any individual firm.