Bank of England Consults on Revocation of UK Technical Standards on Simplified Obligations

The Bank of England has published a consultation paper on the proposed revocation of the U.K. technical standards on simplified obligations. The U.K. retained the EU framework for determining the level of information required within recovery and resolution plans, including the process set down by these technical standards to determine whether simplified obligations can be imposed for RRPs. The BoE explains that the assessment prescribed in the Technical Standards identifies the same firms as the process that results in the setting of a preferred resolution strategy of modified insolvency. The BoE considers that the same outcomes are achievable using this more efficient, existing process and avoids duplication. The ability to apply simplified obligations and any consequential benefits to firms will not be affected by this proposal; the BoE only proposes to simplify the process whereby a firm is designated as eligible for simplified obligations. The deadline for comments is February 2, 2025.

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