BoE issues new bank resolution standards, revokes EU rule

The Bank of England has formally issued the Technical Standards (Simplified Obligations) Instrument 2025, a significant step in strengthening the UK's financial stability framework.

This instrument is made in exercise of specific powers and related provisions of the Financial Services and Markets Act 2000, notably sections 138P (Technical Standards), 138Q (Standards Instruments), 138S (Application of Chapters 1 and 2), and 137T (General Supplementary Powers).

For the purpose of section 138P, the Bank relies on the power to make technical standards conferred by Articles 7(4A) and 8(3A) of the Bank Recovery and Resolution (No. 2) Order 2014/3348. This comprehensive legal basis underpins the Bank's authority to establish and enforce these new resolution standards, ensuring a robust and adaptable regulatory environment for financial institutions operating within the UK.

The instrument explicitly grants the Bank of England the power to modify, amend, or revoke EU tertiary legislation that forms part of retained EU law.

This authority is specifically applied to Commission Delegated Regulation (EU) 2019/348, which is now formally revoked by the Bank.

Prior to its enactment, the Bank diligently fulfilled all statutory pre-conditions.

This included comprehensive consultation with the Prudential Regulation Authority (PRA) and the Financial Conduct Authority (FCA), as well as securing approval from the Treasury.

A draft of the proposed instrument was also published for public review, and no representations were received, underscoring a smooth regulatory process.

The instrument officially comes into force on 30 April 2025.