Miscellaneous Banking Act 2009: miscellaneous amendments
The Banking Act 2009 provides for a special resolution regime (SRR), providing the Bank of England, the PRA, the FCA and HM Treasury with tools to protect financial stability by effectively resolving banks, building societies, investment firms, banking group companies and central counterparties that are failing, while protecting depositors, client assets, taxpayers and the wider economy.
	Since its introduction, the Act has undergone further amendment to keep up with international developments and maintain its usability. Most notably during the implementation of two EU directives (the original Bank Recovery and Resolution Directive in 2014 and the update to the Bank Recovery and Resolution Directive in 2019) and the onshoring process by which EU financial services legislation was preserved in the UK statute book and amended to ensure that it worked in a UK-only context.
	The government is committed to maintaining the workability of the legislation and has identified five minor but necessary technical amendments across the Act.
	The Act makes a technical correction in relation to a requirement on the Bank of England, when directing firms to issue eligible liabilities (equity and debt that can be bailed-in during a resolution), to consult the FCA and the PRA as well as to have regard to:
The wider UK financial services market;
the impact on the institution in question;
and the UK’s financial stability.
This correction also establishes explicitly a similar requirement on the Bank when it is directing institutions with regard to altering maturity profiles of these eligible liabilities. This represents a reversion to the approach established in the original Act which was inadvertently removed during the transposition of the update to the Bank Recovery and Resolution Directive in 2020.
	The Act also makes two further corrections which clarify the existing legislation by deleting extraneous text and correcting a cross reference between two sections of the Act.
	Additionally, this provision clarifies the application of the power to recognise a payment system as systemic, for the purposes of engaging the Bank’s regulatory powers under Part 5 of the Banking Act 2009. The clarification ensures that a payment system can be recognised before it has commenced operating within the UK.
	Finally, section 75 also includes an amendment specifying that the Bank’s existing immunity from damages will extend to new functions conferred by or under this Act.