Recapitalisation meaning

In this issue: UK digital markets UK market studies EU mergers EU State aid Daily and weekly news alerts New and updated content Caselex UK digital markets CMA publishes letter to the Secretary of State for Business and Trade asking for approval of the digital markets competition regime The CMA has written to the Secretary of State for Business and Trade seeking approval of its guidance for the digital markets competition regime created by the Digital Markets, Competition and Consumers Act 2024 (DMCCA). Under the DMCCA, the CMA is required to publish guidance explaining its new roles and powers for the digital markets competition regime, which must receive the Secretary of State’s approval. A draft of the proposed guidance was issued for consultation in May 2024. After considering stakeholder input, the CMA states it is confident the guidance delivers the clarity stakeholders need on how the CMA will run the digital markets competition regime...

In this issue: Key R&I law developments Personal insolvency Directors and insolvency Insolvency litigation Financial institutions Daily and weekly news alerts Key dates for restructuring and insolvency professionals New content Key R&I law developments Insolvency Service launches five-year strategy to combat economic crime The Insolvency Service has unveiled its 2026–31 investigation and enforcement plan, materially broadening its role in addressing economic crime. It sets three principal aims: enforcing the UK insolvency framework, applying the Companies Act 1985, and tackling company-enabled economic crime. To counter money laundering and complex financial misconduct, it will deploy artificial intelligence and advanced analytics, while deepening cryptoasset expertise. Recent results evidence impact: 77 criminal convictions, more than 1,000 director disqualifications, and £4m in compensation secured in 2024–25. See: LNB News 16/07/2025 55. Personal insolvency Can a bankruptcy petition be determined at a hearing fixed to consider a set-aside application? In what circumstances can a guarantee support...

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Practice Note In this Practice Note, the term ‘bank’ denotes a UK institution authorised under Part 4A of the Financial Services and Markets Act 2000 (FSMA 2000) to undertake the regulated activity of accepting deposits (as defined by FSMA 2000, s 22, read with Schedule 2 and any order under FSMA 2000, s 22), and any mention of ‘bank’ below also covers a resolution company. In the wake of Silicon Valley Bank’s failure, the government consulted on additional reforms and, in May 2025, passed the Bank Resolution (Recapitalisation) Act 2025 (see: LNB News 19/07/2024 30). These changes are not confined to smaller banks and, from 16 July 2025, apply to banks of any size, provided the other entry conditions are met (see Practice Note: Bank resolution reforms under the Bank Resolution (Recapitalisation) Act 2025). Part 1 of the Banking Act 2009 (BA 2009) likewise extends to building societies and investment firms, with modifications specified in BA 2009. Central counterparties, meanwhile, are now subject to their own special resolution regime...

Special resolution regime toolkit The Bank of England (BoE) leads the response when banks, building societies and designated investment firms supervised by the Prudential Regulation Authority (PRA) fail, using a process called resolution, which is separate from insolvency, and is described in the Bank of England’s approach to resolution (published 15 December 2023). The BoE will trigger resolution where intervention is required to safeguard financial stability. The framework does not aim to prevent all failures; rather, it ensures that, when they occur, they are managed in an orderly way that seeks to avoid deploying public money to prop up failed banks. Under the special resolution regime (SRR), the most suitable tool must be chosen for resolving or winding up a failed bank, including combinations of tools where appropriate. Through secondary legislation implementing the Financial Services Act 2012 and the Bank Recovery and Resolution Directive 2014/59/EU (EU BRRD), the SRR has been extended, with modifications, to building societies and investment firms. In addition, recognised central counterparties (CCPs) are subject to...

Part XXIV of the Financial Services and Markets Act 2000 (FSMA 2000) Part XXIV enables the regulators to take part in insolvency-related proceedings against firms and individuals. These powers extend to authorised firms and recognised investment exchanges, and also to those carrying on regulated activities in breach of the general prohibition (FSMA 2000, ss 19–20). Each provision in Pt XXIV defines when rights accrue, and in some cases more than one regulator benefits. Seeking insolvency orders is a key regulatory step, particularly where unauthorised business is being conducted. Such proceedings may target insolvent firms and individuals, and those that are not technically insolvent but for which it is just and equitable that the business should stop. The FSMA 2000 provisions should be read with the UK bank recovery and resolution regime, including the special resolution regime under the Banking Act 2009 (BA 2009). For information, see the following Practice Notes: The UK bank recovery and resolution regime Bank resolution reforms under the Bank Resolution (Recapitalisation)...