
1 

(1) These Regulations may be cited as the Bank Levy (Loss Absorbing Instruments) Regulations 2020 and come into force on 22nd November 2020.
(2) These Regulations have effect in relation to chargeable periods ending on or after 1st January 2021.
2 
In these Regulations—
 “Capital Requirements Regulation” has the meaning given in paragraph 30(4) of Schedule 19,
 “PRA Rulebook” means the rulebook published by the Prudential Regulation Authority containing rules made by that Authority under the Financial Services and Markets Act 2000 as that rulebook has effect on 17 August 2022,
 “relevant requirement” means—
(a) a requirement imposed by the Bank of England—
(i) by a direction given under section 3A of the Banking Act 2009, and
(ii) for the purpose of complying with the duties set out in Part 9 of the Bank Recovery and Resolution (No. 2) Order 2014,
(b) a requirement imposed under article 92 or article 92a of the Capital Requirements Regulation,
(c) in relation to requirements imposed by an authority in exercise of its regulatory functions under the law of a country or territory outside of the United Kingdom, a requirement imposed under a comparable scheme for a comparable purpose to paragraph (a) or (b) within that country or territory, and
 “Schedule 19” means Schedule 19 to the Finance Act 2011.
3 

(1) Equities and liabilities that meet the description set out in paragraph (2) are specified for the purposes of paragraph 15V(3)(b) of Schedule 19.
(2) So much of the equities and liabilities that—
(a) would have fallen within the definition of Tier one capital equities and liabilities within the meaning of paragraph 30 of Schedule 19, but
(b) do not fall within that definition because an amount in respect of those equities and liabilities was deducted—
(i) under  Article 36 of Chapter 3 of the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook  or Article 56(d) of the Capital Requirements Regulation, and
(ii) in respect of a loss absorbing instrument issued by a non-UK resident entity which is a subsidiary of a UK resident entity within paragraph 15W(5) of Schedule 19.
4 

(1) A loss absorbing capacity or recapitalisation requirement that meets the condition set out in paragraph (2) is specified for the purposes of paragraph 15V(4)(b) of Schedule 19.
(2) The requirement must be a relevant requirement.
5 

(1) The condition in paragraph (2) is specified for the purposes of paragraph 15W(4)(b) of Schedule 19.
(2) The instrument, or an asset representing the instrument, must be held by a UK resident entity for the purpose of satisfying a relevant requirement imposed on a member of the relevant group.
6 

(1) The condition in paragraph (2) is specified for the purposes of paragraph 15W(7)(b) of Schedule 19.
(2) The liabilities are in issuance for the purpose of satisfying a relevant requirement imposed on a member of the relevant group.
Rebecca Harris
Maggie Throup
Two of the Lords Commissioners for Her Majesty’s Treasury
