The Bank of England has published new and updated operational guidance on how it might implement the United Kingdom’s resolution regime in a bank failure, covering both transfer resolution and bail-in and providing additional detail for building societies. A new operational guide explains how the Bank might execute a transfer resolution, including transferring some or all of a failing firm’s business to a private sector purchaser or a temporary Bank-owned bridge bank, and how it may require a recapitalisation payment. Updates to the Operational guide to bail-in resolution reflect lessons from the failures of Silicon Valley Bank and Credit Suisse and add an alternate approach in which affected creditors receive non-transferable contingent beneficial interests, created on entry into resolution and lasting until share allocation is finalised, representing a potential right to shares or proceeds from their sale once the resolution is concluded. To support cross-border operability of bail-in, the Bank requested and received a No-Action Letter from the US Securities and Exchange Commission, providing comfort that SEC staff consider these non-transferable contingent beneficial interests can be created for investors without registration under US securities law.
Bank of England 2026-04-13
Bank of England publishes new transfer resolution guide and updates bail-in guidance introducing contingent beneficial interests
The Bank of England has issued updated operational guidance on the UK bank resolution regime, covering transfer resolution, bail-in, and additional detail for building societies. The revised bail-in guidance incorporates lessons from the failures of Silicon Valley Bank and Credit Suisse and introduces non-transferable contingent beneficial interests for affected creditors pending final share allocation. The Bank also obtained a No-Action Letter from the US Securities and Exchange Commission to support cross-border operability of these instruments without US securities registration.