Section 6C(4)

The relevant capital instruments or relevant internal liabilities may only be so converted if— the Common Equity Tier 1 instruments are issued by the bank, or by a UK parent undertaking of the bank with the agreement of the Bank of England, the Common Equity Tier 1 instruments are issued prior to the issue of any shares by the bank, or by a parent undertaking of the bank, for the purposes of provision of own funds by the Treasury, the Common Equity Tier 1 instruments are awarded and transferred without delay following the exercise of the conversion power, and the conversion rate that determines the number of Common Equity Tier 1 instruments that are provided in respect of each relevant capital instrument or relevant internal liability represents appropriate compensation to the affected creditor for any loss incurred in consequence of the conversion of that instrument or liability.

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Source: legislation.gov.uk · retrieved 2026-09-04