UK Parliament Confirms Resolution Arrangements for Failing Investment Banks

February 8, 2011

Two new statutory instruments, the Investment Bank Special Administration Regulations 2011 and the Investment Bank (Amendment of Definition) Order 2011, have come into effect. These provisions stem from the Banking Act 2009 and establish a new special administration procedure for failing investment banks which facilitates the return of client assets, following the aftermath of the Lehman Brothers insolvency. The Act also makes it possible for the Bank of England to supplement the insolvency procedures under the Banking Act 2009 where an investment bank also takes deposits, through applying for a modified form of bank insolvency or bank administration.

Cross References

http://www.legislation.gov.uk/uksi/2011/245/pdfs/uksi_20110245_en.pdf

http://www.legislation.gov.uk/uksi/2011/245/pdfs/uksiem_20110245_en.pdf

http://www.legislation.gov.uk/uksi/2011/239/pdfs/uksi_20110239_en.pdf