Authors: Jeremy Stokeld, Paul Sidle, Ben Pykett

UK rules on contractual recognition of bail-in language

While the Banking Act 2009 continues to be the legislative basis for the domestic UK bail-in requirement, the rules in the PRA Rulebook for when PRA regulated financial institutions (“UK Lenders”) must include contractual recognition of bail-in (“CROB”) language changed on 31 December 2020 following the expiry of the Brexit transition period. What does this mean for facility agreements and related finance documents? Should you include CROB language?