Schedule 11: Central counterparties Part 5 – Special resolution action Priority between creditors
Paragraph 37 permits HM Treasury to make regulations to specify matters to which the Bank must have regard in making a write-down instrument to ensure that the treatment of liabilities in a write down instrument align to an appropriate degree with how liabilities should be treated under insolvency proceedings. This will ensure the effective use of the write down power in paragraph 34. The power corresponds with the provisions in paragraph 36 where the Bank has taken action that deviate from normal insolvency treatment principles.