Member

Furthermore, I note that the noble Lord’s amendment would add a material additional obligation for the Bank of England and the Financial Services Compensation Scheme over a resolution weekend. At such a time, it is likely to be critical for the Bank of England to respond quickly and flexibly to a firm failure. However, the noble Lord’s amendment would add a further complex consideration when the authorities’ attention should be focused on the resolution objectives and maintaining financial stability. This may delay or impede effective resolution action. In any case, the information to make an assessment of whether there should be any clawback may not be available at the time when the use of the new mechanism is being contemplated. Such information may come to light only after the resolution has taken place. In addition, there may be ongoing enforcement action, in which case these matters may be best considered as part of that process rather than separately.