Schedule 3, Part 3, paragraph 11(3)

In article 2 (prescribed financial institutions)— in paragraph (2) at the end insert— a mixed activity holding company for the purposes set out in paragraph (3) and (4); a relevant MAHC for the purpose set out in paragraph (5). after paragraph (2) insert— The first purpose is enabling the FCA or PRA to make rules under section 192JB of FSMA in relation to the provision of financial support to other members of the group of a mixed activity holding company which encounter or are likely to encounter financial difficulties. The second purpose is enabling the FCA or PRA to make rules which require a mixed activity holding company to notify it that the company is failing or likely to fail (within the meaning given in Article 32.4 of the recovery and resolution directive). The third purpose is enabling the FCA or PRA to make rules which require a relevant MAHC, in any agreement which creates a liability, to include a contractual term by which a party to the agreement to whom the liability is owed— recognises that the liability may be subject to the exercise by the Bank of England of power to make— a mandatory reduction instrument (within the meaning given in section 6B of the Banking Act 2009); or a resolution instrument under section 12A, 48U, 48V or 48W of that Act ; and agrees to be bound by any reduction of the principal or outstanding amount due or by any conversion or cancellation effected by the exercise of that power. Rules made for the purpose set out in paragraph (5) may not be brought into force before 1st January 2016.

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