s 137J Rules about recovery plans: duty to consult
(1) Before either regulator prepares a draft of any general rules that require a relevant person (or a relevant person of a specified description) to prepare a recovery plan, the regulator must consult the Treasury . (1A) The FCA must also consult the Bank of England. (2) “Relevant person” means— (a) an institution authorised in the UK ; or (b) a qualifying parent undertaking within the meaning given by section 192B. (3) A “recovery plan” is a document which provides for measures to be taken— (a) by an institution authorised in the UK which is not part of a group, following a significant deterioration of the financial position of the institution, in order to restore its financial position; or (b) in relation to a group, to achieve the stabilisation of the group as a whole, or of any institution within the group, where the group or institution is in a situation of financial stress, in order to address or remove the causes of the financial stress and restore the financial position of the group or institution. (4) For the purposes of subsection (3)(a) the definition of “group” in section 421 applies with the omission of subsection (1)(e) and (f) of that section. (6) In this section— “ authorised person ”, in relation to the PRA, means PRA-authorised person; “ institution ” means— a credit institution, other than an entity mentioned in Article 2.5 of the capital requirements directive; or a designated investment firm as defined in Article 4(1)(2AA) of the capital requirements regulation; “institution authorised in the UK ” means an authorised person who is — a bank within the meaning given by section 2 of the Banking Act 2009; a building society within the meaning given in section 119 of the Building Societies Act 1986; or an investment firm within the meaning given by section 258A of the Banking Act 2009; “ specified ” means specified in the rules.