Member

I understand that the sector’s interest in this matter stems from a provision in clause 7 that gives the Bank of England an explicit power to require the issuance of securities by the firm in resolution where the new mechanism in the Bill is used. This provides a means for the Bank of England to give effect to a recapitalisation under the new mechanism established by the Bill. Its purpose is to provide additional operational certainty that, if the Bank of England needs the failing firm to issue shares as part of its resolution, doing so will not be put at risk by the usual administrative process of share issuance.