On May 26, the UK Prudential Regulation Authority (PRA) published a consultation paper to require PRA-supervised firms covered by the EU Bank Resolution and Recovery Directive (BRRD) to include in their contractual agreements governed by third-country law an agreement by the relevant counterparty to subject itself to the general and temporary stay provisions of the BRRD as implemented under UK law. In particular, the BRRD provides for a general stay of a counterparty’s right to exercise any termination, suspension, modification, netting or set-off rights, or to obtain possession, exercise control or enforce any security over any property of a firm solely as a result of the exercise of a crisis prevention or crisis management measure taken pursuant to the BRRD, provided the firm continues to perform its obligations under the relevant contract. 
Continue Reading UK PRA Consults on Application of Resolution Stays to Third-Country Agreements