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S.I. No. 289/2015 - European Union (Bank Recovery and Resolution) Regulations 2015.

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  2. s)or rangeBliain nó blianta nó raon TypeCineál All Legislation Acts Statutory Instruments Advanced SearchCuardach Casta HomeBaile Statutory InstrumentsIonstraimí Reachtúla 2015 S.I. No. 289/2015 - European Union (Bank Recovery and Resolution) Regulations 2015. S.I. No. 289/2015 - European Union (Bank Recovery and Resolution) Regulations 2015. AmendmentsLeasuithe Download PDF Íoslódáil PDF CONTENTS Regulation Part 1 Preliminary and General 1. Citation and commencement 2. Scope 3. Interpretation 4. Designated resolution authority 5. Funding

resolution authority

  1. Bank as resolution authority and competent authority
  2. Resolution authority and Bank
  3. Designated national macroprudential authority
  4. Minister and resolution authority Part 2 Preparation Chapter 1 Recovery and resolution planning General provision
  5. Simplified obligations for certain institutions Recovery Planning
  6. Recovery plans
  7. Records

financial contacts 13. Assessment

recovery plans

  1. Group recovery plans
  2. Assessment

group recovery plans

  1. Recovery plan indicators Resolution plans
  2. Resolution plans
  3. Contents

resolution plan 19. Maintenance and production

information for purpose

resolution plans 20. Information for purpose

resolution plans and cooperation from institution 21. Resolution plans for institutions that are part

a group

  1. Requirement and procedure for group resolution plans
  2. Resolution authority as group-level resolution authority
  3. Assessment

group resolution plan 25. Transmission

resolution plans by resolution authority Chapter 2 Resolvability 26. Assessment

resolvability for institutions 27. Assessment

resolvability for groups

  1. Powers to address or remove impediments to resolvability
  2. Powers to address or remove impediments to resolvability: group treatment Chapter 3 Intra-group financial support
  3. Application

group financial support agreement

  1. Group financial support agreement
  2. Review

proposed agreement by competent authority and mediation 33. Approval

proposed agreement by shareholders 34. Transmission

group financial support agreements to resolution authority

  1. Conditions for group financial support
  2. Decision to provide financial support
  3. Right

opposition

competent authorities

  1. Disclosure Part 3 Early intervention Chapter 1 Early intervention measures
  2. Early intervention measures Chapter 2 Removal

senior management 40. Removal

senior management and management body

  1. Suspension notice
  2. Time

effect

suspension notice 43. Confirmation

suspension notice 44. Enforcement

suspension notice 45. Court’s power to extend validity

suspension notices Chapter 3 Appointment

Temporary Administrator 46. Interpretation

Chapter 47

. Preconditions for making temporary administration order 48.

Proposed temporary administration order — written notice 49. Content and form

proposed temporary administration order 50. Procedure for hearing

application for temporary administration order 51. Publication

temporary administration order

  1. Application to vary or extend temporary administration order
  2. Application to set aside temporary administration order
  3. Content

temporary administration order 55. Period

temporary administration order 56. Remuneration, etc.,

temporary administrator 57. Resignation, vacancy in

fice, etc.,

temporary administrator 58. Performance

functions

temporary administrator

  1. General temporary administrator provisions
  2. Coordination

early intervention measures and appointment

temporary administrator in relation to groups Part 4 Resolution Chapter 1 Objectives, conditions and general principles

  1. Resolution objectives
  2. Conditions for resolution
  3. Conditions for resolution with regard to financial institutions and holding companies
  4. General principles governing resolution Chapter 2 Valuation
  5. Valuation for purposes

resolution

  1. Provisional valuation Chapter 3 Resolution tools General provisions
  2. Application

Central Bank (Supervision and Enforcement) Act 2013 68. General principles

resolution tools The sale

business tool 69. Sale

business tool 70. Sale

business tool: procedural requirements The bridge institution tool 71. Bridge institution tool 72. Requirements

bridge institution 73. Operation

bridge institution The asset separation tool 74. Asset separation tool Sale

business, bridge institution and asset separation tools: ancillary provisions 75. Effect

transfer by resolution order — general 76. Effect

transfer by resolution order in relation to securities 77. Application

Bankers’ Books Evidence Acts 1879 to 1989 78. Stamp duty The bail-in tool — Objective and scope

bail-in tool

  1. Bail-in tool
  2. Scope

bail-in tool The bail-in tool — minimum requirement for own funds and eligible liabilities 81. Application

minimum requirement

  1. Minimum requirement — resolution authority as group-level resolution authority
  2. Minimum requirement — resolution authority as resolution authority

subsidiary 84. Minimum requirement — resolution authority generally The bail-in tool — implementation

bail-in tool 85. Assessment

amount

bail-in 86. Treatment

shareholders in bail-in or write-down or conversion

capital instruments 87. Sequence

write-down and conversion

  1. Derivatives
  2. Rate

conversion

debt to equity

  1. Recovery and reorganisation measures to accompany bail-in
  2. Business reorganisation plan The bail-in tool — ancillary provisions
  3. Effect

bail-in 93. Removal

procedural impediments to bail-in 94. Contractual recognition

bail-in Chapter 4 Write-down

capital instruments

  1. Requirement to write-down or convert capital instruments
  2. Provisions governing write-down or conversion

capital instruments

  1. Authorities responsible for determination
  2. Consolidated application: procedure for determination
  3. Proposed capital instruments order
  4. Capital instruments order
  5. Publication

capital instruments order

  1. Application to vary capital instruments order
  2. Application to set aside capital instruments order Chapter 5 Resolution order procedure
  3. Proposed resolution order
  4. Hearing

application for resolution order — procedure

  1. Resolution period
  2. Publication

resolution order

  1. Application to vary resolution order
  2. Application to vary resolution order where recipient is a bridge institution
  3. Application to set aside resolution order
  4. Powers

Court in making resolution order — general 112. Ancillary powers

Court in making resolution order 113. Rights

shareholders during resolution period 114. Oversight

resolution action during resolution period — general Chapter 6 Special management 115. Special management — general 116. Publication

appointment

special manager 117. Duties

special manager 118. Oversight by resolution authority

special management 119. Effect

special management 120. Duration

special management 121. Resignation, vacancy in

fice, remuneration, etc.,

special manager 122. Performance

functions

special manager Chapter 7 Resolution authority powers 123. Powers

resolution authority during resolution period — general 124. Powers

resolution authority under resolution order Chapter 8 Resolution powers 125. Power to require the provision

services and facilities 126. Power

another Member State to enforce crisis management measures or crisis prevention measures 127. Assets, rights, liabilities, shares and other instruments

ownership located in third countries 128. Exclusion

certain contractual terms in early intervention and resolution

  1. Power to suspend certain obligations
  2. Power to restrict enforcement

security interests

  1. Power to temporarily suspend termination rights Chapter 9 Safeguards
  2. Treatment

shareholders and creditors in case

partial transfers and application

the bail-in tool 133. Valuation

difference in treatment

  1. Safeguard for shareholders and creditors
  2. Appeal

valuation under Regulation 133

  1. Definitions for Regulations 138 to 142
  2. Safeguard for counterparties in partial transfers
  3. Protection for financial collateral, set-

f and netting agreements

  1. Protection for security arrangements
  2. Protection for structured finance arrangements and covered bonds
  3. Application to set aside partial property transfer or modification

contracts 142. Partial transfers — protection

trading, clearing and settlement systems Chapter 10 Procedural obligations 143. Notification requirements 144. Decision

resolution authority 145. Procedural obligations

resolution authority 146. Confidentiality Chapter 11 Right

appeal and exclusion

other actions

  1. Restrictions on other proceedings
  2. Limitation

judicial review

decision to take crisis management measure 149. Limitation

certain rights

appeal to Court

Appeal

  1. Restrictions on remedies Part 5 Cross-border group resolution
  2. General principles regarding decision-making involving more than one Member State
  3. Resolution colleges
  4. European resolution colleges
  5. Information exchange
  6. Group resolution involving a subsidiary

group

  1. Group resolution Part 6 Relations with third countries
  2. Agreements with third countries
  3. Recognition and enforcement

third-country resolution proceedings 159. Right to refuse recognition or enforcement

third-country resolution proceedings 160. Resolution

Union branches

  1. Cooperation with third-country authorities
  2. Exchange

confidential information Part 7 Financing Arrangements

  1. Requirement to establish resolution financing arrangements
  2. Use

Fund

  1. Target level
  2. Ex-ante contributions
  3. Extraordinary ex-post contributions
  4. Alternative funding means
  5. No liability

resolution authority to Fund

  1. Insufficiency in Fund
  2. Borrowing between financing arrangements
  3. Mutualisation

national financing arrangements in case

a group resolution 173. Use

deposit guarantee schemes in context

resolution Part 8 Penalties

  1. Penalties: specific provisions
  2. Publication

administrative penalties 176. Maintenance

central database by European Banking Authority 177. Effective application

penalties and exercise

powers to impose penalties by Bank Part 9 Criminal

fences Chapter 1 Criminal

fences: general 178.

fences by bodies corporate 179. Prosecution by Bank Chapter 2 Criminal

fences 180. Continuation

contravention

Regulation 123

(1)(e) 181. Provision

false or misleading information 182. Breach

confidentiality

  1. Misleading or obstructing valuers, temporary administrators or special managers
  2. Criminal

fences Part 10 Consequential Amendments Chapter 1 Acts 185. Amendment

Central Bank Act 1942 186. Amendment

Irish Takeover Panel Act 1997 187. Amendment

Central Bank and Credit Institutions (Resolution) Act 2011 188. Amendment

Central Bank (Supervision and Enforcement) Act 2013 189. Amendment

Companies Act 2014 Chapter 2 Statutory Instruments 190. Amendment

European Communities (Cross-Border Mergers) Regulations 2008 191. Amendment

European Communities (Financial Collateral Arrangements) Regulations 2010 192. Amendment

European Communities (Reorganisation and Winding-up

Credit Institutions) Regulations 2011 193. Amendment

European Union (Capital Requirements) Regulations 2014 Part 11 Final Provisions

  1. Cooperation with European Banking Authority
  2. Service

notice or other document by competent authority

  1. Court hearings otherwise than in public
  2. Non application

competition rules 198. Effect

transfer orders on legal proceedings 199. Regulations made under Part 7 SCHEDULE Part 1 Information to be included in recovery plans Part 2 Information that the resolution authority may request institutions to provide for the purposes

drawing up and maintaining resolution plans Part 3 Matters that the resolution authority is to consider when assessing the resolvability

an institution or group S.I. No. 289

2015 EUROPEAN UNION (BANK RECOVERY AND RESOLUTION) REGULATIONS 2015 Notice

the making

this Statutory Instrument was published in “Iris Oifigiúil”

14th July, 2015. I, MICHAEL NOONAN, Minister for Finance, in exercise

the powers conferred on me by section 3

the European Communities Act 1972 (No. 27

1972) and for the purpose

giving full effect to Directive 2014/59/EU

the European Parliament and

the Council

15 May 20141 , hereby make the following regulations: Part 1 Preliminary and General Citation and commencement. 1.

(1)These Regulations may be cited as the European Union (Bank Recovery and Resolution) Regulations 2015.
(2)Subject to paragraph
(3), these Regulations come into operation on 15 July 2015.
(3)Regulations 79 to 94 shall come into operation on 1 January 2016. Scope. 2.
(1)These Regulations shall apply to the following: (
  1. a)institutions that are authorised in the State; (
  2. b)financial institutions that are established in the State where the financial institution— (
  3. i)is a subsidiary

— (I) a credit institution or investment firm, or (II) a company referred to in subparagraphs (c) to (i), and (ii) is covered by the supervision

the parent undertaking on a consolidated basis in accordance with Articles 6 to 17

the Union Capital Requirements Regulation; (

  1. c)financial holding companies that are established in the State; (
  2. d)mixed financial holding companies that are established in the State; (
  3. e)mixed-activity holding companies that are established in the State; (
  4. f)parent financial holding companies that are established in the State; (
  5. g)Union parent financial holding companies that are established in the State; (
  6. h)parent mixed financial holding companies that are established in the State; (
  7. i)Union parent mixed financial holding companies that are established in the State; (
  8. j)branches, which operate in the State,

institutions that are established outside the Union in accordance with the specific conditions set out in the Bank Recovery and Resolution Directive.

(2)Subject to specific provisions

these Regulations, the resolution authority and the competent authority when exercising their functions under these Regulations in relation to an entity referred to in paragraph

(1)shall take account

the nature

the entity’s business, its shareholding structure, its legal form, its risk profile, its size, its legal status, its interconnectedness to other institutions and to the financial system in general, the scope and complexity

its activities, its membership

an institutional protection scheme that meets the requirements

Article 113

(7)

the Union Capital Requirements Regulation or other cooperative mutual solidarity systems as referred to in Article 113

(6)

that Regulation, and whether it exercises any investment services as defined in Regulation 3

(1)

the MiFID I Regulations. Interpretation. 3.

(1)In these Regulations— “Act

1942” means the Central Bank Act 1942 (No. 22

1942); “Act

1971” means the Central Bank Act 1971 (No. 24

1971); “Act

1989” means the Building Societies Act 1989 (No. 17

1989); “Act

2003” means the Central Bank and Financial Services Authority

Ireland Act 2003 (No. 12

2003); “Act

2009” means the Financial Services (Deposit Guarantee Scheme) Act 2009 (No. 13

2009); “Act

2010” means the Central Bank Reform Act 2010 (No. 23

2010); “Act

2013” means the Central Bank (Supervision and Enforcement) Act 2013 (No. 26

2013); “Act

2014” means the Companies Act 2014 (No. 38

2014); “Additional Tier 1 instruments” means capital instruments that meet the conditions set out in Article 52

(1)

the Union Capital Requirements Regulation; “affected creditor” means a creditor whose claim relates to a liability that is reduced or converted to shares or other instruments

ownership by the exercise

the write-down or conversion power pursuant to the use

the bail-in tool; “aggregate amount” means the aggregate amount by which the resolution authority has assessed that eligible liabilities are to be written down or converted in accordance with Regulation 85

(1); “appropriate authority” means authority

the Member State identified in accordance with Article 61

the Bank Recovery and Resolution Directive that is responsible under the national law

that State for making the determinations referred to in Article 59

(3)

that Directive; “asset management vehicle” means a legal person that meets the requirements set out in Regulation 74

(3); “asset separation tool” means the mechanism for effecting a transfer by a resolution order

assets, rights or liabilities

an institution under resolution to an asset management vehicle in accordance with Regulation 74; “back-to-back transaction” means a transaction entered into between 2 group entities for the purpose

transferring, in whole or in part, the risk generated by another transaction entered into between one

those group entities and a third party; “bail-in tool” means the mechanism for effecting the exercise by a resolution order

the write-down and conversion powers in relation to liabilities

an institution under resolution in accordance with Regulation 79; “Bank” means the Central Bank

Ireland; “Bank Recovery and Resolution Directive” means Directive 2014/59/EU

the European Parliament and

the Council

15 May 2014 establishing a framework for the recovery and resolution

credit institutions and investment firms and amending Council Directive 82/891/EEC, and Directives 2001/24/EC, 2002/47/EC, 2004/25/EC, 2005/56/EC, 2007/36/EC, 2011/35/EU, 2012/30/EU and 2013/36/EU, and Regulations (EU) No 1093/2010 and (EU) No 648/2012,

the European Parliament and

the Council2 ; “branch” means a branch as defined in point

(17)

Article 4

(1)

the Union Capital Requirements Regulation; “bridge institution” means a legal person that meets the requirements

Regulation 71

(3); “bridge institution tool” means the mechanism for transferring, by way

a resolution order, shares or other instruments

ownership issued by an institution under resolution or assets, rights or liabilities

an institution under resolution to a bridge institution, in accordance with Regulation 71; “business day” means a day other than a Saturday, a Sunday or a public holiday in the Member State concerned; “capital instruments order” shall be construed in accordance with Regulation 95; “Capital Requirements Directive” means Directive 2013/36/EU

the European Parliament and

the Council

26 June 2013 on access to the activity

credit institutions and the prudential supervision

credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC3 ; “Capital Requirements Regulations” means the European Union (Capital Requirements) Regulations 2014 ( S.I. No. 158

2014 ); “Common Equity Tier 1 instruments” means capital instruments that meet the conditions set out in Article 28

(1)to
(4), Article 29
(1)to
(5)or Article 31
(1)

the Union Capital Requirements Regulation; “competent authority” means, as the context requires— (a) the authority designated under Regulation 4

the Capital Requirements Regulations, or (b) the European Central Bank with regard to specific tasks conferred on it by Council Regulation (EU) No 1024/2013; “conditions for resolution” means the conditions referred to in Regulation 62

(1); “consolidated basis” means the basis

the consolidated situation as defined in point

(47)

Article 4

(1)

the Union Capital Requirements Regulation; “consolidating supervisor” means consolidating supervisor as defined in point

(41)

Article 4

(1)

the Union Capital Requirements Regulation; “constitution” has the meaning assigned to it by section 2

the Act

2014 and includes, where the context requires, the memorandum and articles

association

a company established under the Companies Act 1963 (or a former enactment relating to companies (within the meaning

section 5

the Act

2014)); “conversion rate” means the factor that determines the number

shares or other instruments

ownership into which a liability

a specific class will be converted, by reference either to a single instrument

the class in question or to a specified unit

value

a debt claim; “core business lines” means business lines and associated services which represent material sources

revenue, profit or franchise value for an institution or for a group

which an institution forms part; “Council Regulation (EU) No 1024/2013” means Council Regulation (EU) No 1024/2013

15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision

credit institutions4 ; “Court” means the High Court; “covered bond” means an instrument as referred to in Article 52

(4)

Directive 2009/65/EC; “covered deposits” means covered deposits as defined in point

(5)

Article 2

(1)

Directive 2014/49/EU; “credit institution” means a credit institution as defined in point

(1)

Article 4

(1)

the Union Capital Requirements Regulation, not including the entities referred to in Article 2

(5)

the Capital Requirements Directive; “crisis management measure” means— (a) a resolution action, or (b) the appointment

a special manager under Regulation 115

(1); “crisis prevention measure” means— (a) the exercise

powers to direct removal

deficiencies or impediments to recoverability under Regulation 13

(8)and
(9), (b) the exercise

powers to address or remove impediments to resolvability under Regulation 28 or 29, (c) the application

an early intervention measure under Regulation 39, (d) the appointment

a temporary administrator under Chapter 3

Part 3

, or (e) the exercise

the write-down or conversion powers under Regulation 95; “critical functions” means activities, services or operations the discontinuance

which is likely in one or more Member States to lead to the disruption

services that are essential to the real economy or to disrupt financial stability due to the size, market share, external and internal interconnectedness, complexity or cross-border activities

an institution or group, with particular regard to the substitutability

those activities, services or operations; “cross-border group” means a group having group entities established in more than one Member State; “deposit guarantee scheme” means— (a) the deposit protection account referred to in the Act

2009, (b) the deposit guarantee scheme introduced and

ficially recognised by the State pursuant to Article 4

Directive 2014/49/EU, or (c) the deposit guarantee scheme introduced and

ficially recognised by another Member State pursuant to Article 4

Directive 2014/49/EU; “depositor” means a depositor as defined in point

(6)

Article 2

(1)

Directive 2014/49/EU; “derivative” means a derivative as defined in point

(5)

Article 2

Regulation (EU) No 648/2012; “Directive 97/9/EC” means Directive 97/9/EC

the European Parliament and

the Council

3 March 1997 on investor-compensation schemes5 ; “Directive 98/26/EC” means Directive 98/26/EC

the European Parliament and

the Council

19 May 1998 on settlement finality in payment and securities settlement systems6 ; “Directive 2001/34/EC” means Directive 2001/34/EC

the European Parliament and

the Council

28 May 2001 on the admission

securities to

ficial stock exchange listing and on information to be published on those securities7 ; “Directive 2002/47/EC” means Directive 2002/47/EC

the European Parliament and

the Council

6 June 2002 on financial collateral arrangements8 ; “Directive 2009/65/EC” means Directive 2009/65/EC

the European Parliament and

the Council on the coordination

laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS)9 ; “Directive 2014/49/EU” means Directive 2014/49/EU

the European Parliament and

the Council

16 April 2014 on deposit guarantee schemes10 ; “eligible deposits” means eligible deposits as defined in point

(4)

Article 2

(1)

Directive 2014/49/EU; “eligible liabilities” means the liabilities and capital instruments that do not qualify as Common Equity Tier 1, Additional Tier 1 or Tier 2 instruments

an institution or entity referred to in Regulation 2

(1)(
  1. b)to (
  2. i)that are not excluded from the scope

the bail-in tool by virtue

Regulation 80

(2); “emergency liquidity assistance” means the provision by a central bank

central bank money, or any other assistance that may lead to an increase in central bank money, to a solvent financial institution, or group

solvent financial institutions, that is facing temporary liquidity problems, without such an operation being part

monetary policy; “European Banking Authority” means the authority established pursuant to Regulation (EU) No 1093/2010; “examiner” has the meaning assigned to it in section 2

the Act

2014; “extraordinary public financial support” means— (a) State aid within the meaning

Article 107

(1)

the TFEU, or (b) any other public financial support at supra-national level, which, if provided for at national level, would constitute State aid, that is provided in order to preserve or restore the viability, liquidity or solvency

an institution or entity referred to in Regulation 2

(1)(
  1. b)to (
  2. i)or

a group

which such an institution or entity forms part; “financial contracts” includes the following contracts and agreements: (

  1. a)securities contracts, including the following: (
  2. i)contracts for the purchase, sale or loan

a security, a group or index

securities; (ii) options on a security or group or index

securities; (iii) repurchase or reverse repurchase transactions on any such security, group or index; (

  1. b)commodities contracts, including the following: (
  2. i)contracts for the purchase, sale or loan

a commodity or group or index

commodities for future delivery; (ii) options on a commodity or group or index

commodities; (iii) repurchase or reverse repurchase transactions on any such commodity, group or index; (c) futures and forwards contracts, including contracts (other than a commodities contract) for the purchase, sale or transfer

a commodity or property

any other description, service, right or interest for a specified price at a future date; (

  1. d)swap agreements, including the following: (
  2. i)swaps and options relating to interest rates; spot or other foreign exchange agreements; currency; an equity index or equity; a debt index or debt; commodity indexes or commodities; weather; emissions or inflation; (
  3. ii)total return, credit spread or credit swaps; (iii) any agreements or transactions that are similar to an agreement referred to in clause (
  4. i)or (
  5. ii)which is the subject

recurrent dealing in the swaps or derivatives markets; (e) inter-bank borrowing agreements where the term

the borrowing is 3 months or less; (f) master agreements for any

the contracts or agreements referred to in subparagraphs (a) to (e); “financial holding company” means a financial holding company as defined in point

(20)

Article 4

(1)

the Union Capital Requirements Regulation; “financial institution” means a financial institution as defined in point

(26)

Article 4

(1)

the Union Capital Requirements Regulation; “financial services legislation” has the meaning assigned to it by section 3

(1)

the Act

2013; “Fund” means the fund established under Regulation 163

(1); “Governor” means the Governor

the Bank; “group” means a parent undertaking and its subsidiaries; “group entity” means a legal person that is part

a group; “group financing arrangement” means the financing arrangement or arrangements

the Member State

the group-level resolution authority; “group recovery plan” means a group recovery plan drawn up and maintained in accordance with Regulation 14; “group resolution” means either— (a) the taking

resolution action at the level

a parent undertaking or

an institution subject to consolidated supervision, or (b) the coordination

the application

resolution tools and the exercise

resolution powers by resolution authorities, within the meaning

the Bank Recovery and Resolution Directive, in relation to group entities that meet the conditions for resolution; “group resolution plan” means a plan for group resolution drawn up in accordance with Regulations 21 to 23; “group resolution scheme” means a plan drawn up for the purposes

group resolution in accordance with Regulation 155; “group-level resolution authority” means either— (

  1. a)the Union resolution authority, or (
  2. b)the resolution authority, depending on whether the consolidating supervisor is located in another Member State or in the State respectively; “insolvency” includes— (
  3. a)winding up (whether

ficial or voluntary), (b) the appointment

a provisional liquidator, (c) the appointment

an examiner (including the appointment

an interim examiner), (d) the appointment

an administrator under section 2

the Investor Compensation Act 1998 (No. 37

1998); “institution” means a credit institution or an investment firm; “institution under resolution” means an institution, a financial institution, a financial holding company, a mixed financial holding company, a mixed-activity holding company, a parent financial holding company in a Member State, a Union parent financial holding company, a parent mixed financial holding company in a Member State or a Union parent mixed financial holding company, in respect

which a resolution order is made; “institutional protection scheme” means an arrangement that meets the requirements

Article 113

(7)

the Union Capital Requirements Regulation; “instruments

ownership” means shares, other instruments that confer ownership, instruments that are convertible into or give the right to acquire shares or other instruments

ownership, and instruments representing interests in shares or other instruments

ownership; “intra-group guarantee” means a contract by which one group entity guarantees the obligations

another group entity to a third party; “investment firm” means an investment firm, as defined in point

(2)

Article 4

(1)

the Union Capital Requirements Regulation, that is subject to the initial capital requirement in Article 28

(2)

the Capital Requirements Directive; “investor” means an investor within the meaning

point

(4)

Article 1

Directive 97/9/EC; “management body” has the meaning assigned to it by point

(7)

Article 3

(1)

Capital Requirements Directive; “micro, small and medium-sized enterprises” means micro, small and medium-sized enterprises as defined with regard to the annual turnover criterion referred to in Article 2

(1)

the Annex to Commission Recommendation 2003/361/EC11 ; “MiFID I Regulations” means the European Communities (Markets in Financial Instruments) Regulations 2007 (S. I. No. 60

2007); “Minister” means the Minister for Finance; “mixed financial holding company” means a mixed financial holding company as defined in point

(21)

Article 4

(1)

the Union Capital Requirements Regulation; “mixed-activity holding company” means a mixed-activity holding company as defined in point

(22)

Article 4

(1)

the Union Capital Requirements Regulation; “national macroprudential authority” means the authority in the State entrusted with the conduct

macroprudential policy referred to in Recommendation B1

the Recommendation

the European Systemic Risk Board

22 December 2011 on the macroprudential mandate

national authorities (ESRB/2011/3)12 ; “netting arrangement” means an arrangement under which a number

claims or obligations can be converted into a single net claim, including close-out netting arrangements under which, on the occurrence

an enforcement event (however or wherever defined) the obligations

the parties are accelerated so as to become immediately due or are terminated, and in either case are converted into or replaced by a single net claim, including “close-out netting provisions” as defined in point (n)(i)

Article 2

(1)

Directive 2002/47/EC and “netting” as defined in point (k)

Article 2

Directive 98/26/EC; “normal insolvency proceedings” means collective insolvency proceedings which entail the partial or total divestment

a debtor and the appointment

a liquidator or an administrator normally applicable to institutions under national law (including under any enactment or rule

law) and either specific to those institutions or generally applicable to any natural or legal person; “own funds” means own funds as defined in point

(118)

Article 4

(1)

the Union Capital Requirements Regulation; “own funds requirements” means the requirements

Articles 92 to 98

the Union Capital Requirements Regulation; “parent financial holding company in a Member State” means a parent financial holding company in a Member State as defined in point

(30)

Article 4

(1)

the Union Capital Requirements Regulation; “parent institution in a Member State” means a parent institution in a Member State as defined in point

(28)

Article 4

(1)

the Union Capital Requirements Regulation; “parent mixed financial holding company in a Member State” means a parent mixed financial holding company in a Member State as defined in point

(32)

Article 4

(1)

the Union Capital Requirements Regulation; “parent undertaking” means a parent undertaking as defined in point

(15)(a)

Article 4

(1)

the Union Capital Requirements Regulation; “personal data” has the meaning assigned to it by section 1

the Data Protection Act 1988 (No. 25

1988); “recipient” means the entity to which shares, other instruments

ownership, debt instruments, assets, rights or liabilities, or any combination

those items are transferred from an institution under resolution; “recovery capacity” means the capability

an institution to restore its financial position following a significant deterioration; “recovery plan” means a recovery plan drawn up and maintained by an institution in accordance with Regulation 11; “regulated market” means a regulated market as defined in— (a) Regulation 3

(1)

the MiFID I Regulations, or (b) point

(14)

Article 4

(1)

the MiFID I Directive, as the context requires; “Regulation (EU) No 1093/2010” means Regulation (EU) No 1093/2010

the European Parliament and

the Council

24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC13 ; “Regulation (EU) No 1094/2010” means Regulation (EU) No 1094/2010

the European Parliament and

the Council

24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/79/EC14 ; “Regulation (EU) No 648/2012” means Regulation (EU) No 648/2012

the European Parliament and

the Council

4 July 2012 on OTC derivatives, central counterparties and trade repositories15 ; “relevant capital instruments”, for the purposes

Regulations 79 to 94 and Chapter 4

Part 4

, means Additional Tier 1 instruments and Tier 2 instruments; “relevant parent institution” means a parent institution in a Member State, a Union parent institution, a financial holding company, a mixed financial holding company, a mixed-activity holding company, a parent financial holding company in a Member State, a Union parent financial holding company, a parent mixed financial holding company in a Member State or a Union parent mixed financial holding company in relation to which the bail-in tool is applied; “relevant third-country authority” means a third-country authority responsible for carrying out functions comparable to those

resolution authorities or competent authorities pursuant to the Bank Recovery and Resolution Directive; “resolution” means the application

a resolution tool in order to achieve one or more

the resolution objectives referred to in Regulation 61

(2); “resolution action” means the decision to place an institution or entity referred to in Regulation 2
(1)(
  1. b)to (
  2. i)under resolution pursuant to Regulation 62 or 63, the application

a resolution tool, or the exercise

one or more resolution powers; “resolution authority” means the authority designated under Regulation 4; “resolution college” means a college established in accordance with Regulation 152 to carry out the tasks mentioned in paragraph

(1)

that Regulation; “resolution objectives” means the resolution objectives referred to in Regulation 61

(2); “resolution order” means an order made by the Court under Regulation 105 and includes an order varied under Regulation 108 or 109; “resolution period” shall be construed in accordance with Regulation 106
(1); “resolution plan” means a resolution plan for an institution drawn up in accordance with Regulation 17; “resolution power” means a power referred to in Chapter 7 or 8

Part 4

; “resolution tool” means a resolution tool referred to in Regulation 68
(2); “sale

business tool” means the mechanism for effecting a transfer by either— (

  1. a)a resolution order, or (
  2. b)a relevant authority (whether a Union resolution authority or a court in the state

a Union resolution authority concerned) in a Member State other than the State,

shares or other instruments

ownership issued by an institution under resolution, or assets, rights or liabilities

an institution under resolution to a purchaser that is not a bridge institution, in accordance with, as the case may be— (i) Regulation 69, or (ii) Article 38

the Bank Recovery and Resolution Directive; “secured liability” means a liability where the right

the creditor to payment or other form

performance is secured by a charge, pledge or lien, or collateral arrangements including liabilities arising from repurchase transactions and other title transfer collateral arrangements; “senior management” means senior management as defined in Regulation 3

(1)

the Capital Requirements Regulations; “set-

f arrangement” means an arrangement under which 2 or more claims or obligations owed between the institution under resolution and a counterparty can be set

f against each other; “shareholders” means shareholders or holders

other instruments

ownership; “significant branch” means a branch that would be considered to be significant in a host Member State in accordance with Article 51

(1)

the Capital Requirements Directive; “special manager” shall be construed in accordance with Regulation 115

(1); “subsidiary” means a subsidiary as defined in point
(16)

Article 4

(1)

the Union Capital Requirements Regulation; “supervisory college” means a college

supervisors established in accordance with Article 116

the Capital Requirements Directive or Regulation 104

the Capital Requirements Regulations; “suspension notice”, for the purposes

Part 3

, shall be construed in accordance with Regulation 41
(1); “suspension order”, for the purposes

Part 3

, shall be construed in accordance with Regulation 45
(1); “temporary administration order”, for the purposes

Part 3

, shall be construed in accordance with Regulation 49; “termination right” means a right to terminate a contract, a right to accelerate, close out, set-

f or net obligations or any similar provision that suspends, modifies or extinguishes an obligation

a party to the contract or a provision that prevents an obligation under the contract from arising that would otherwise arise; “TFEU” means the Treaty on the Functioning

the European Union; “third county” means a country other than the State or a Member State; “third-country institution” means an entity, the head

fice

which is established in a third country, that would, if it were established within the Union, be covered by the definition

an institution; “third-country parent undertaking” means a parent undertaking, a parent financial holding company or a parent mixed financial holding company established in a third country; “third-country resolution authority” means the authority

a third country that carries out the functions and duties

a resolution authority in that country; “third-country resolution proceedings” means an action under the law

a third country to manage the failure

a third-country institution or a third-country parent undertaking that is comparable, in terms

objectives and anticipated results, to resolution actions under the Bank Recovery and Resolution Directive; “Tier 2 instruments” means capital instruments or subordinated loans that meet the conditions set out in Article 63

the Union Capital Requirements Regulation; “title transfer financial collateral arrangement” means a title transfer financial collateral arrangement as defined in point (b)

Article 2

(1)

Directive 2002/47/EC; “transfer powers” means the powers specified in Regulation 111

(1)(
  1. a)or (
  2. b)to transfer shares, other instruments

ownership, debt instruments, assets, rights or liabilities, or any combination

those items from an institution under resolution to a recipient; “Union” means the European Union; “Union branch” means a branch

a third-country institution located in a Member State; “Union Capital Requirements Regulation” means Regulation (EU) No 575/2013

the European Parliament and

the Council

26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/201216 ; “Union competent authority” means the body or bodies designated by a Member State, other than the State, to act as a competent authority for the purposes

the EU Capital Requirements Directive and the Union Capital Requirements Regulation; “Union macroprudential authority” means an authority in a Member State, other than the State, entrusted with the conduct

macroprudential policy referred to in Recommendation B1

the Recommendation

the European Systemic Risk Board

22 December 2011 on the macroprudential mandate

national authorities (ESRB/2011/3); “Union parent financial holding company” means an EU parent financial holding company as defined in point

(31)

Article 4

(1)

the Union Capital Requirements Regulation; “Union parent institution” means an EU parent institution as defined in point

(29)

Article 4

(1)

the Union Capital Requirements Regulation; “Union parent mixed financial holding company” means an EU parent mixed financial holding company as defined in point

(33)

Article 4

(1)

the Union Capital Requirements Regulation; “Union parent undertaking” means a Union parent institution, a Union parent financial holding company or a Union parent mixed financial holding company; “Union resolution authority” means the body or bodies designated by a Member State, other than the State, to act as a resolution authority for the purposes

the Bank Recovery and Resolution Directive; “Union State aid framework” means the framework established by Articles 107, 108 and 109

the TFEU and Regulations and all Union acts, including guidelines, communications and notices, made or adopted pursuant to Article 108

(4)or 109

the TFEU; “Union subsidiary” means an institution which is established in a Member State and which is a subsidiary

a third-country institution or a third-country parent undertaking; “winding up” means the realisation

assets

an institution or entity referred to in Regulation 2

(1)(
  1. b)to (
  2. i)in accordance with Part 11

the Act

2014; “write-down and conversion powers” means the powers referred to in Regulations 95

(1)and 111
(1)(c) to (g).
(2)A word or expression which is used in these Regulations and is also used in the Bank Recovery and Resolution Directive has, unless the context otherwise requires, the same meaning in these Regulations as it has in the Bank Recovery and Resolution Directive. Designated resolution authority. 4.
(1)The Bank is designated as the resolution authority in the State that carries out the functions and duties

a resolution authority provided for in the Bank Recovery and Resolution Directive.

(2)The Minister shall inform the European Banking Authority in writing

the designation

the resolution authority under paragraph

(1).
(3)In order to— (
  1. a)apply the resolution actions, and (
  2. b)exercise its functions under these Regulations, with the required speed and flexibility, the resolution authority shall have the necessary expertise, resources and operational capacity.
(4)For the purposes

this Regulation, the resolution authority shall adopt and, as soon as practicable after their adoption, publish on the website

the Bank any necessary relevant internal rules (including rules regarding professional secrecy) on information exchanges between it and other functional areas

the Bank.

(5)The resolution authority, in the preparation, planning and application

resolution decisions, shall cooperate closely with staff

the competent authority.

(6)The Minister is designated as responsible for the exercise

the functions

a competent ministry referred to in Article 3

(5)

the Bank Recovery and Resolution Directive.

(7)Any decision taken by the competent authority, or the resolution authority, in accordance with these Regulations shall— (a) take into account the potential impact

the decision in all the Member States where the institution or the group concerned operates, and (b) minimise the negative effects on financial stability and negative economic and social effects in those Member States. Funding

resolution authority. 5. The Bank shall provide, pursuant to section 32D

the Act

1942, the resolution authority with such funds as the Governor considers necessary to enable that authority to perform and exercise its functions. Bank as resolution authority and competent authority. 6. In these Regulations, the functions and duties

the Bank as resolution authority and as competent authority in the State shall be carried out in accordance with Regulation 7 and references to the functions and duties

the resolution authority and competent authority designated in the State shall be construed accordingly. Resolution authority and Bank. 7.

(1)The Bank shall ensure that adequate structural arrangements for the purposes

paragraph

(4)are in place such that the staff involved in carrying out the functions as a resolution authority for the purposes

the Bank Recovery and Resolution Directive shall be structurally separate from and subject to separate reporting lines from the staff involved in carrying out the supervision tasks

the competent authority or other functions

the Bank.

(2)The Governor shall be responsible for exercising the functions

the resolution authority under these Regulations.

(3)Without limitation to the generality

paragraph

(2), the Governor may delegate any

the functions referred to in that paragraph to a Head

Function (within the meaning given by section 2

the Act

1942) or an

ficer or employee

the Bank.

(4)The Bank shall ensure adequate structural arrangements are in place to ensure operational independence and to avoid conflicts

interest between the Bank’s— (a) functions as a resolution authority for the purposes

the Bank Recovery and Resolution Directive, and (b) other functions (including, in particular, its supervision functions pursuant to the Union Capital Requirements Regulation and the Capital Requirements Regulations).

(5)Nothing in paragraph
(4)shall limit— (a) the exchange

information necessary for the performance

functions under the Bank Recovery and Resolution Directive and these Regulations, or (b) the performance

functions in relation to the preparation, planning and application

resolution decisions.

(6)Nothing in these Regulations prevents the performance by the Governor or the Bank

their functions arising under the treaties governing the European Union (within the meaning given by section 1 (as amended by section 2

the European Union Act 2009 (No. 33

2009))

the European Communities Act 1972 (No. 27

1972)) or the ESCB Statute (within the meaning given by section 2

the Act

1942). Designated national macroprudential authority. 8. The Bank is designated as the national macroprudential authority in the State entrusted with the conduct

macroprudential policy referred to in Recommendation B1

the Recommendation

the European Systemic Risk Board

22 December 2011 on the macroprudential mandate

national authorities (ESRB/2011/3). Minister and resolution authority. 9.

(1)The resolution authority shall inform the Minister

the following decisions taken under these Regulations: (

  1. a)a decision to make a proposed resolution order pursuant to Regulation 62 or 63; (
  2. b)a decision to draw up a valuation under Regulation 65 or 66; (
  3. c)a decision to exercise the write-down or conversion powers under Regulation 95 independently

resolution; (d) a decision to notify the group-level resolution authority, the consolidating supervisor and the members

the resolution college for a group pursuant to Regulation 155

(1); (e) a decision to notify the competent authority and the other members

the resolution college for a group pursuant to Regulation 156

(1); (f) a joint decision under Regulation 158
(3)within a European resolution college to recognise third-country resolution proceedings; (g) a decision under Regulation 158
(5)to recognise third-country resolution proceedings; (h) a decision to refuse to recognise or enforce third-country proceedings under Regulation 159 after consulting the other members

the European resolution college; (i) a decision to resolve a Union branch under Regulation 160.

(2)The resolution authority shall obtain the Minister’s prior written consent before making a proposed resolution order pursuant to Regulation 104, where the resolution authority forms the view that— (a) both— (i) the use

the Fund will be required for the effective application

the resolution tools, and (

  1. ii)there are insufficient monies available in the Fund to meet these requirements; (
  2. b)the decision will have a direct fiscal impact, other than the use

the Fund, or (c) the decision is likely to have systemic implications.

(3)For the purpose

paragraph

(2)(c), “systemic implication” means there is a serious risk to the stability

the financial system or the economy

the State. Part 2 Preparation Chapter 1 Recovery and resolution planning General provision Simplified obligations for certain institutions. 10.

(1)The competent authority may apply simplified recovery planning obligations to an institution following an assessment pursuant to paragraph
(2).
(2)The competent authority having had regard to— (a) the impact that the failure

an institution could have, due to the nature

its business, (b) whether failure and subsequent winding up

an institution under normal insolvency proceedings would be likely to have a significant negative effect on financial markets, on other institutions, on funding conditions or on the wider economy, and (c) the matters mentioned in paragraph

(5), shall, with respect to the institution concerned, determine the following: (i) the contents and details

recovery plans provided for in Regulations 11 to 16; (ii) the date by which the first recovery plan is to be drawn up and the frequency for updating recovery plans, which may be less frequent than that provided for in Regulation 11

(2); (iii) the contents and details

the information required from the institution concerned as provided for in— (I) Regulation 11

(4)and
(6), and (II) Part 1

the Schedule.

(3)The resolution authority may apply simplified resolution planning obligations to an institution, following an assessment pursuant to paragraph
(4).
(4)The resolution authority, having had regard to— (a) the impact that the failure

an institution could have, due to the nature

its business, (b) whether failure and subsequent winding up

an institution under normal insolvency proceedings would be likely to have a significant negative effect on financial markets, on other institutions, on funding conditions or on the wider economy, and (c) the matters mentioned in paragraph

(5), shall, with respect to the institution concerned, determine the following: (i) the contents and details

resolution plans provided for in Regulations 17 to 21; (ii) the date by which the first resolution plan is to be drawn up and the frequency for updating resolution plans, which may be less frequent than that provided for in— (I) Regulation 17

(6)and
(7), and (II) Regulation 23
(5)and
(6); (iii) the contents and details

the information required from the institution concerned as provided for in Regulations 20

(1)and 21
(1)and in Part 3

the Schedule; (iv) the level

detail for the assessment

resolvability provided for in— (I) Regulations 26 and 27, and (II) Part 3

the Schedule.

(5)The matters referred to in paragraphs
(2)and
(4)are the following: (
  1. a)the institution’s shareholding structure; (
  2. b)the institution’s legal form; (
  3. c)the institution’s risk profile, size and legal status; (
  4. d)the institution’s interconnectedness to other institutions or to the financial system in general; (
  5. e)the scope and the complexity

the institution’s activities; (f) the institution’s membership

an institutional protection scheme or other co-operative mutual solidarity systems as referred to in Article 113

(7)

the Union Capital Requirements Regulation; (g) any exercise

investment services or activities as defined in Regulation 3

(1)

the MiFID I Regulations.

(6)The competent authority and, where relevant, the resolution authority shall make the assessment referred to in paragraphs
(2)and
(4)after consulting, where appropriate, with the national macroprudential authority.
(7)Where simplified obligations are applied to an institution under paragraph
(2)or
(4), the competent authority and where relevant the resolution authority, may impose full, unsimplified obligations at any time, where they believe the circumstances warrant such imposition.
(8)The application

simplified obligations under paragraph

(2)or
(4)shall not affect the power

the competent authority and, where relevant, the resolution authority to take a crisis prevention measure or a crisis management measure.

(9)Subject to paragraphs
(10)to
(12), the competent authority or the resolution authority, as the case may be, may waive the application

— (a) recovery planning or resolution planning obligations to institutions affiliated to a central body and wholly or partially exempted from prudential requirements in national law (including under any enactment or rule

law) in accordance with Article 10

the Union Capital Requirements Regulation, or (b) recovery planning obligations to institutions which are members

an institutional protection scheme.

(10)Where a waiver pursuant to paragraph
(9)is granted, the competent authority or resolution authority, as the case may be, shall— (a) apply the requirements

Regulations 11 to 25 on a consolidated basis to the central body and institutions affiliated to it within the meaning

Article 10

the Union Capital Requirements Regulation, and (b) require the institutional protection scheme to fufil the requirements

Regulations 11 to 16 in cooperation with each

its waived members.

(11)For the purpose

paragraph

(10), any reference in this Chapter to a group shall include a central body and institutions affiliated to it, within the meaning

Article 10

the Union Capital Requirements Regulation, and their subsidiaries, and any reference to parent undertaking or institutions that are subject to consolidated supervision pursuant to Article 111

the Capital Requirements Directive shall include the central body.

(12)Waivers pursuant to paragraph
(9)shall not be granted to an institution where— (a) the institution concerned is subject to direct supervision by the European Central Bank pursuant to Article 6
(4)

Council Regulation (EU) No 1024/2013, or (b) the operations

the institution concerned constitute a significant share in the financial system

the State, and that institution shall accordingly draw up its own recovery plans in accordance with Regulations 11 to 16 and shall be the subject

an individual resolution plan in accordance with Regulations 17 to 25.

(13)For the purposes

paragraph

(12), the operations

an institution shall be considered to constitute a significant share

the State’s financial system where any

the following conditions are met: (a) the total value

that institution’s assets exceeds €30,000,000,000; (b) the ratio

that institution’s total assets to the GDP

the Member State

establishment exceeds 20%, unless the total value

its assets is below €5,000,000,000.

(14)The competent authority and the resolution authority shall inform the European Banking Authority in writing

the manner in which they have applied paragraphs

(1),
(2),
(3),
(4),
(9),
(10)or
(12)to institutions in the State. Recovery Planning Recovery plans. 11.
(1)Each institution, to which these Regulations apply, that is not part

a group subject to consolidated supervision pursuant to Regulations 99 and 100

the Capital Requirements Regulations shall draw up and maintain a recovery plan that shall set out measures to be taken by the institution to restore its financial position following a significant deterioration

its financial position.

(2)Each institution shall update its recovery plans— (
  1. a)at least annually, (
  2. b)after any change to its legal or organisational structure, its business or its financial position, which could have a material effect on, or necessitates a change to, the recovery plan, and (
  3. c)on written notice from the competent authority directing that a recovery plan be updated, which may be more than once per year.
(3)Without limiting the generality

paragraph

(2)the competent authority may direct an institution to update its recovery plan at any time.
(4)Without prejudice to Regulation 10, each institution shall ensure that its recovery plan includes the information listed in Part 1

the Schedule as well as such other information as may be required in writing by the competent authority.

(5)Recovery plans shall— (a) contemplate a range

scenarios

severe macroeconomic and financial stress relevant to the institution’s specific conditions and such plans should include scenarios based on both system-wide adverse conditions and adverse conditions specific to individual legal entities and to groups and (b) include appropriate conditions and procedures to ensure the timely implementation

recovery actions as well as a wide range

recovery options to restore the institution’s financial position.

(6)Each institution shall include in its recovery plan possible measures which the institution could take in the event that the conditions for early intervention under Regulation 39 are met.
(7)Each institution shall include in its recovery plan a range

options for recovery actions to restore the institution’s financial position and shall set out appropriate preparatory measures and procedures to enable the timely implementation

recovery actions.

(8)An institution shall not assume in its recovery plan any access to or receipt

extraordinary public financial support but a recovery plan shall include, where relevant, an analysis

how and when the institution may apply to access central bank liquidity facilities and identify those assets which would be expected to qualify as collateral.

(9)The management body

the institution concerned shall assess and approve the recovery plan before it is submitted to the competent authority.

(10)Recovery plans shall be considered to be a governance arrangement within the meaning

Regulations 61 and 62

the Capital Requirements Regulations. Records

financial contacts. 12.

(1)The competent authority may, where it considers it appropriate, direct an institution to maintain detailed records

financial contracts to which it is a party.

(2)An institution may be required to provide the records referred to in paragraph
(1)to the competent authority where the competent authority considers that access to such records would assist it in its review

a recovery plan submitted by the institution concerned.

(3)Where records are required by written request

the competent authority under paragraph

(2), the institution concerned shall provide the records in accordance with the request. Assessment

recovery plans. 13.

(1)Each institution that is required to draw up recovery plans under Regulations 11 and 14 shall submit those plans to the competent authority for review and such plans should demonstrate to the satisfaction

the competent authority that those plans meet the requirements and criteria referred to in paragraph

(2).
(2)The competent authority shall, not later than 6 months from the date

submission

a recovery plan under paragraph

(1), and after consulting the Union competent authorities

any Member State where significant branches are located insofar as is relevant to that branch, review the plan and assess the extent to which it satisfies the requirements set out in Regulation 11 and the following criteria: (a) the implementation

the arrangements proposed in the plan is reasonably likely to maintain or restore the viability and financial position

the institution or

the group, taking into account the preparatory measures that the institution has taken or plans to take; (b) the plan and specific options within the plan are reasonably likely to be implemented quickly and effectively in situations

financial stress avoiding to the maximum extent possible any significant adverse effect on the financial system, including in scenarios which would lead other institutions to implement recovery plans within the same period.

(3)The competent authority, when assessing the appropriateness

a recovery plan, shall consider the appropriateness

an institution’s capital and funding structure in light

the institution’s risk profile and the level

complexity

its organisational structure.

(4)The competent authority shall provide a copy

an institution’s recovery plan to the resolution authority and the resolution authority shall examine the recovery plan with a view to identifying any actions in the recovery plan which may adversely impact the resolvability

the institution and may make recommendations on those matters to the competent authority.

(5)Where the competent authority assesses that there are material deficiencies in an institution’s recovery plan, or material impediments to its implementation, it shall notify the institution

its assessment in writing and direct the institution to submit not later than 2 months, extendable by one month with the competent authority’s approval,

the date

such notice a revised plan demonstrating how those deficiencies or impediments are addressed.

(6)Before directing an institution to resubmit a recovery plan under paragraph
(5)the competent authority shall give the institution the opportunity to state its opinion on that requirement.
(7)Where the competent authority does not consider that the deficiencies and impediments referred to in paragraph
(5)have been adequately addressed by the revised plan, it may direct an institution to make specific changes to the plan and, where so directed, the institution concerned shall make such changes.
(8)Where an institution fails to submit a revised recovery plan, or where the competent authority determines that the revised recovery plan does not adequately remedy the deficiencies or impediments identified in its original assessment, and it would not be possible to adequately remedy the deficiencies or impediments through a direction to make specific changes to the plan under paragraph
(7), the competent authority shall direct the institution to identify in writing within a reasonable timeframe changes it can make to its business in order to address the deficiencies in, or impediments to the implementation

, the recovery plan.

(9)Where an institution fails to identify the changes referred to in paragraph
(8)within the timeframe set by the competent authority, or where the competent authority assesses that the actions proposed by the institution would not adequately address the deficiencies or impediments, it may direct in writing the institution to take any measures it considers to be necessary and proportionate, taking into account the seriousness

the deficiencies and impediments and the effect

the measures on the institution’s business and, where so directed, the institution concerned shall take such measures.

(10)The competent authority may, without prejudice to Regulation 92

the Capital Requirements Regulations or to the competent authority’s other powers, direct an institution in writing to do one or more

the following: (

  1. a)reduce its risk profile, including its liquidity risk; (
  2. b)enable timely recapitalisation measures; (
  3. c)review its strategy and structure; (
  4. d)make changes to its funding strategy so as to improve the resilience

the core business lines and critical functions; (e) make changes to its governance structure.

(11)Where the competent authority directs an institution to take measures under paragraph
(8),
(9)or
(10), its decision on the measures shall be reasoned and proportionate and the competent authority shall provide that decision in writing to the institution.
(12)A decision by the competent authority to direct an institution to take measures under paragraph
(10)is an appealable decision for the purposes

Part VII

A

the Act

1942. Group recovery plans. 14.

(1)Where the competent authority is the consolidating supervisor, a parent undertaking or a Union parent undertaking authorised in the State shall draw up and submit to the competent authority a group recovery plan.
(2)A group recovery plan shall— (a) consist

a recovery plan for the group headed by the parent or the Union parent undertaking as a whole, and (b) identify measures which may be required to be implemented at the level

the parent or Union parent undertaking or at the level

a subsidiary.

(3)In accordance with the procedure set out in Regulation 15, where an institution authorised in the State is a subsidiary

a Union parent undertaking, the competent authority may direct the subsidiary to draw up and submit a recovery plan on an individual basis and, in such cases, the provisions

Regulations 11 to 13 shall apply.

(4)Where a group recovery plan has been submitted to the competent authority as consolidating supervisor, provided that the confidentiality requirements

the Bank Recovery and Resolution Directive are in place in other Member States, the competent authority shall transmit the group recovery plan to the following: (a) the relevant competent authorities referred to in Articles 115 and 116

the Capital Requirements Directive; (b) the Union competent authorities

the Member States where significant branches are located, insofar as the group recovery plan is relevant to that branch; (c) the resolution authority; (d) the Union resolution authorities

subsidiaries.

(5)A group recovery plan shall set out measures to be taken by the group or institutions within the group following a financial deterioration for the purposes

— (a) achieving the stabilisation

the group as a whole, or any institution

the group, (b) addressing or removing the causes

the financial deterioration for the group or institution, and (c) restoring the financial position

the group or the institution, while also taking into account the financial position

other group entities.

(6)A group recovery plan shall include arrangements to ensure the coordination and consistency

measures to be taken at the level

— (

  1. a)the parent or Union parent undertaking, (
  2. b)entities referred to in Regulation 2

(1)(
  1. c)to (i), (
  2. c)subsidiaries, and (
  3. d)significant branches, where applicable, in accordance with the Capital Requirements Directive or the Capital Requirements Regulations.
(7)A group recovery plan, and any plan drawn up for an individual subsidiary, shall include the elements specified in Regulation 11 and such plans shall include, where applicable, arrangements for the provision

intra-group financial support pursuant to an agreement concluded in accordance with Chapter 3.

(8)Group recovery plans shall include a range

options for recovery actions to be taken in the scenarios provided for in Regulation 11

(4)to
(8).
(9)For each

the scenarios referred to in paragraph

(8), a group recovery plan shall identify whether there are obstacles to the implementation

recovery measures within the group, including at the level

individual entities covered by the plan, and whether there are substantial practical or legal impediments to the prompt transfer

own funds or the repayment

liabilities within the group.

(10)The management body

the parent or the Union undertaking drawing up the group recovery plan pursuant to paragraph

(1)shall assess and approve a group recovery plan before it is submitted to the competent authority. Assessment

group recovery plans. 15.

(1)Where the competent authority is consolidating supervisor it shall, together with the Union competent authorities

subsidiaries, after consulting the competent authorities referred to in Article 116

the Capital Requirements Directive and with the Union competent authorities

significant branches insofar as is relevant to the significant branch, review the group recovery plan and assess the extent to which it satisfies the requirements and criteria set out in Regulations 13 and 14.

(2)The assessment referred to in paragraph
(1)shall be made in accordance with the procedure established in Regulation 13 and this Regulation and shall take into account the potential impact

the recovery actions and measures on financial stability in all Member States in which the group operates.

(3)Where the competent authority is consolidating supervisor, it shall endeavour to reach a joint decision with Union competent authorities

subsidiaries on the following: (a) the review and assessment

the group recovery plan; (b) whether a recovery plan on an individual basis will be drawn up for institutions that are part

the group; (c) the application

the measures referred to in Regulation 13

(5)to
(10).
(4)Where the competent authority is responsible for the supervision

a subsidiary

a Union parent undertaking, it shall endeavour to reach a joint decision with the consolidating supervisor on the matters referred to in paragraph

(3)(a) to (c).
(5)In the cases referred to in paragraphs
(3)and
(4), the competent authority shall endeavour to reach a joint decision with the Union competent authorities not later than 4 months after the date

the transmission

the group recovery plan in accordance with Regulation 14

(4).
(6)Subject to paragraph
(7), the competent authority may request the European Banking Authority to assist— (a) in reaching a joint decision, in accordance with Article 31(c)

Regulation (EU) No 1093/2010, or (b) in reaching an agreement in accordance with Article 19

(3)

Regulation (EU) No 1093/2010 in relation to the assessment

recovery plans and implementation

the measures provided for in Regulation 13

(10)(a), (b) and (d).
(7)The competent authority shall not refer the matter to the European Banking Authority after the end

the four-month period or after a joint decision has been reached.

(8)Where the competent authority is consolidating supervisor and the Union competent authorities and the competent authority have not made a joint decision within 4 months

the date

transmission on— (a) the review and assessment

the group recovery plan, or (b) any measures the Union parent undertaking is required to take in accordance with Regulation 13

(5)to
(10), the competent authority shall make its own decision on that matter and such decision shall have regard to the views and reservations

Union competent authorities expressed during the four-month period.

(9)The competent authority shall notify in writing the decision under paragraph
(8)to the Union parent undertaking and to the Union competent authorities.
(10)Subject to paragraphs
(11)and
(12), where, at the end

the four-month period referred to in paragraph

(5), any Union competent authority or the competent authority has referred a matter mentioned in paragraph
(6)to the European Banking Authority in accordance with Article 19

Regulation (EU) No 1093/2010, the competent authority shall defer the decision and await any decision that that other authority may take in accordance with Article 19

(3)

that Regulation, and shall take its decision in accordance with any decision

that other authority.

(11)Where the European Banking Authority has not made a decision within one month, the decision

the competent authority as consolidating supervisor shall apply.

(12)Where the competent authority is responsible for the supervision

a subsidiary

a Union parent undertaking and it and the Union competent authorities have not made a joint decision within 4 months

the date

transmission on— (

  1. a)whether a recovery plan on an individual basis is to be drawn up for the institutions under its jurisdiction, or (
  2. b)the application at subsidiary level

the measures referred to in Regulation 13

(5)to
(10), the competent authority shall make its own decision on that matter, and the competent authority shall notify such decision to the other competent authorities.
(13)Where the European Banking Authority has not made a decision within one month, the decision

the competent authority in relation to the subsidiary shall apply.

(14)Where a Union competent authority has made its own decision in relation to a matter referred to in paragraph
(12)(a) and (b), the competent authority shall not be prevented from reaching a joint decision with the relevant Union competent authorities on a group recovery plan covering the group entities in the State and in the Member States

those other competent authorities.

(15)Any joint decision or decision taken by a Union competent authority in the absence

a joint decision under this Regulation shall be recognised as conclusive and applied by the competent authority.

(16)For the purposes

paragraphs

(7),
(10)and
(12), the four-month period shall be deemed to be the conciliation period within the meaning

Regulation (EU) No 1093/2010.

(17)A decision

the competent authority under paragraph

(8)or
(12)is an appealable decision for the purposes

Part VII

A

the Act

1942. Recovery plan indicators. 16.

(1)Each recovery plan or group recovery plan shall include a framework

indicators established by the institution or group that identify the points at which appropriate actions referred to in the plan may be taken.

(2)Each institution or group shall put in place appropriate arrangements for the regular monitoring

the framework

indicators referred to in paragraph

(1).
(3)The framework

indicators referred to in paragraph

(1)— (a) shall be reviewed and assessed by the competent authority as part

the assessment

the recovery plan in accordance with Regulations 13 and 15, (b) shall be capable

being monitored easily, and (c) may include indicators

a qualitative or quantitative nature relating to the financial position

the institution or group.

(4)Notwithstanding paragraphs
(1)to
(3), an institution or group may— (a) take action under its recovery plan where the relevant indicator has not been met but where the management body

the institution or group considers it appropriate in the circumstances, or (b) refrain from taking such an action where, although the relevant indicator has been met, the management body

the institution or group does not consider it appropriate in the circumstances.

(4)An institution or group shall notify a decision— (
  1. a)to take an action referred to in the recovery plan, or (
  2. b)to refrain from taking such an action, in writing to the competent authority without delay. Resolution plans Resolution plans. 17.
(1)The resolution authority shall draw up a resolution plan in accordance with Regulation 18 for each institution that is not part

a group subject to consolidated supervision pursuant to Articles 111 and 112

the Capital Requirements Directive.

(2)Prior to drawing up the resolution plan under paragraph
(1), the resolution authority shall consult with— (
  1. a)the competent authority, and (
  2. b)the Union resolution authorities

any significant branches

the institution outside the State insofar as is relevant to the significant branch.

(3)A resolution plan shall set out the resolution actions which the resolution authority plans to take in the event that the institution meets the conditions for resolution.
(4)The resolution authority shall disclose the information referred to Regulation 18
(2)(a) to the institution concerned.
(5)When drawing up a resolution plan, the resolution authority shall identify any material impediments to resolvability and, where necessary and proportionate, outline relevant actions for how those impediments could be addressed, in accordance with this Chapter.
(6)Subject to paragraph
(7), the resolution authority shall review resolution plans, and update them where appropriate, after any material changes to the legal or organisational structure

the institution or to its business or its financial position that could have a material effect on the effectiveness

the plan or otherwise necessitates a revision

the resolution plan.

(7)The resolution authority shall review resolution plans, and update them where appropriate, at least annually.
(8)For the purpose

the revision or update

the resolution plans referred to in paragraphs

(6)and
(7)— (a) the resolution authority may direct institutions to assist them in the drawing up and updating

the plans and, where required, institutions shall provide such assistance, and (b) institutions and, where it becomes aware, the competent authority shall promptly communicate to the resolution authority any change that necessitates such a revision or update.

(9)The resolution authority shall ensure that a resolution plan takes into consideration relevant scenarios including the following: (a) scenarios in which the institution’s failure occurs at a time

general financial instability or system-wide adverse events; (b) scenarios in which its failure is caused by institution-specific factors.

(10)In preparing and assessing a resolution plan and assessing the resolvability

the institution, the resolution authority shall not assume any

the following: (a) any extraordinary public financial support, other than through the use

the Fund; (

  1. b)any emergency liquidity assistance provided by the Bank or by another central bank; (
  2. c)any liquidity assistance provided by the Bank or by another central bank under non-standard collateralisation, duration and interest rate terms.

(11)A resolution plan shall include an analysis

how and when an institution may apply, under the scenarios considered in the plan, to access the Bank’s, or another central bank’s, liquidity facilities and identify those assets which would be expected to qualify as collateral. Contents

resolution plan. 18.

(1)Without prejudice to Regulation 10, a resolution plan shall set out options for applying the resolution tools and resolution powers to the institution concerned.
(2)A resolution plan drawn up under Regulation 17 shall include the following, which shall be quantified whenever appropriate and possible: (a) a summary

the key elements

the plan; (b) a summary

any material changes to the institution that have occurred since the most recent resolution information was provided to the resolution authority by the institution pursuant to Regulation 20; (c) a demonstration

how any critical functions and core business lines could be legally and economically separated, to the extent necessary, from other functions so as to ensure continuity upon the failure

the institution; (d) an estimation

the timeframe for executing each material aspect

the plan; (e) a detailed description

the assessment

resolvability carried out in accordance with Regulations 17

(5)and 26; (f) a description

any measures required pursuant to Regulation 28 to address or remove impediments to resolvability identified as a result

the assessment carried out in accordance with Regulation 26; (g) a description

the processes for determining the value

the critical functions, core business lines and assets

the institution, and the extent to which these could be readily sold to another party; (h) a detailed description

the arrangements for ensuring that the information required pursuant to Regulation 20 is up to date and at the disposal

the resolution authority and the Union resolution authorities at all times; (i) an explanation

how the resolution options could be financed without assuming access to any

the sources mentioned in Regulation 17

(10); (j) a detailed description

the different resolution strategies that could be applied under different scenarios and the timeframe for the implementation

these strategies; (k) a description

any critical interdependencies; (l) a description

measures to preserve access to payments and clearing services and other infrastructures, and an assessment

the portability

client positions; (m) an analysis

the impact

the plan on the employees

the institution, including an assessment

any associated costs, and a description

any envisaged procedures to consult employees during the resolution process; (

  1. n)a plan for communicating with the media and the public; (
  2. o)the level

the minimum requirement for own funds and eligible liabilities pursuant to Regulation 81

(1)and a deadline to reach that level, where applicable; (p) where applicable, the part

the minimum requirement for own funds and eligible liabilities which the institution is required to meet through contractual bail-in instruments pursuant to Regulation 84

(4)and a deadline to reach that level, where applicable; (q) a description

essential operations and systems and plans for maintaining the continuous functioning

the institution’s operational processes; (r) where applicable, any opinion expressed by the institution in relation to the resolution plan. Maintenance and production

information for purpose

resolution plans. 19.

(1)The resolution authority may direct an institution, or an entity referred to in Regulation 2
(1)(b) to (i), to maintain detailed records

financial contracts to which it is a party and, where so directed, the institution concerned shall maintain such records.

(2)The resolution authority may specify a time limit within which the institution or entity referred to in paragraph
(1)shall be capable

producing those records

financial contracts on request and the resolution authority may set different time limits for different types

financial contracts but the same time limits shall apply to all institutions. Information for purpose

resolution plans and cooperation from institution. 20.

(1)The resolution authority may direct an institution, or an entity referred to in Regulation 2
(1)(
  1. b)to (i), to, and where so directed the institution or entity concerned shall— (
  2. a)cooperate with the resolution authority in the preparation, updating and implementation

resolution plans, and (b) provide the resolution authority with all information necessary to prepare, update and implement resolution plans, including the items specified in Part 2

the Schedule.

(2)The information required under paragraph
(1)(b) may include, for the purposes

facilitating a determination in accordance with Regulation 80

(2)(i), any information necessary to ascertain which goods or services are critical to the daily functioning

the operations

the institution, including supplier names and details

contracts.

(3)The competent authority shall cooperate with the resolution authority to verify whether the information referred to in paragraph
(1)is in the competent authority’s possession and where such information is in the possession

the competent authority, the competent authority shall provide it to the resolution authority upon written request. Resolution plans for institutions that are part

a group. 21.

(1)Where the resolution authority is the group-level resolution authority it shall— (a) together with the Union resolution authorities

subsidiaries

the group outside the State, and (b) having consulted the Union resolution authorities

significant branches

the group outside the State in so far as is relevent to the significant branch, prepare the group resolution plan on the basis

information provided to it in accordance with Regulation 20.

(2)A group resolution plan shall include a plan for resolution

the group as a whole, either through resolution at the level

the Union parent undertaking or through break-up and resolution

the subsidiaries.

(3)A group resolution plan shall identify measures for the resolution

— (

  1. a)the Union parent undertaking, (
  2. b)subsidiaries

the group located in the Union, (c) entities referred to in Regulation 2

(1)(
  1. c)to (i), and (
  2. d)subject to Part 6, subsidiaries

the group located outside the Union.

(4)In addition to the matters set out in Regulation 18, a group resolution plan prepared by the resolution authority shall— (a) set out the resolution actions that could be taken in relation to group entities, both through resolution actions in respect

the entities referred to in Regulation 2

(1)(b) to (i), the parent undertaking and subsidiary institutions and through coordinated resolution actions in respect

subsidiary institutions, in the scenarios provided for in Regulation 17

(9), (b) examine the extent to which the resolution tools and powers could be applied in a coordinated way to group entities established in the Union, including measures to facilitate the purchase by a third party

— (

  1. i)the group as a whole, (
  2. ii)particular group entities, or (iii) separate business lines that are delivered by one or more group entities, (
  3. c)identify any potential impediments to a coordinated resolution

group entities, (

  1. d)where a group includes entities incorporated in third countries, identify— (
  2. i)the implications for the resolution

group entities within the Union, and (

  1. ii)appropriate arrangements for cooperation and coordination with the relevant authorities in those third countries, (
  2. e)identify any measures, which may include the legal or economic separation

particular functions or business lines, that are necessary to facilitate group resolution when the conditions for resolution are met, (f) set out any additional actions, not referred to in these Regulations, which the resolution authority intends to take in relation to the resolution

the group, and (g) identify how the group resolution actions could be financed and, where use

the Fund would be required, set out principles, in accordance with paragraph

(5), for sharing responsibility for that financing between resolution funds in different Member States.
(5)The principles referred to in paragraph
(4)(
  1. g)shall be based on equitable and balanced criteria and shall take into account in particular the following: (
  2. a)Regulation 172
(5); (b) the impact on financial stability in all Member States concerned.
(6)In preparing and assessing a group resolution plan and assessing the resolvability

the group, the resolution authority shall not assume any

the following: (a) any extraordinary public financial support, other than through the use

the Fund; (

  1. b)any emergency liquidity assistance provided by the Bank or by another central bank; (
  2. c)any liquidity assistance provided by the Bank or by another central bank under non-standard collateralisation, duration and interest rate terms.

(7)When drawing up and updating a group resolution plan, the resolution authority shall also carry out an assessment

the resolvability

the group pursuant to Regulation 27 and shall include a detailed description

this assessment

resolvability in the group resolution plan.

(8)When preparing a group resolution plan, the resolution authority shall, together with Union resolution authorities

subsidiaries outside the State, have regard to the need to ensure that the group resolution plan does not have a disproportionate impact on any Member State. Requirement and procedure for group resolution plans. 22.

(1)When requested to do so in writing by the resolution authority, a parent undertaking in the State shall, as soon as practicable, submit information required under Regulation 20 to the resolution authority which shall concern the parent undertaking and, to the extent required, other group entities including those referred to in Regulation 2
(1)(c) to (i).
(2)Subject to the confidentiality requirements in these Regulations, the Bank Recovery and Resolution Directive and paragraph
(5), the resolution authority shall transmit the information provided in accordance with this paragraph to the following: (a) the European Banking Authority; (b) the Union resolution authorities

subsidiaries; (c) the Union resolution authorities

jurisdictions in which significant branches are located insofar as is relevant to the significant branch; (d) the relevant competent authorities referred to in Regulations 103 and 104

the Capital Requirements Regulations; (e) the Union resolution authorities

Member States where entities referred to in Regulation 2

(1)(
  1. c)to (
  2. i)are established.
(3)The information transmitted to the European Banking Authority under paragraph
(2)(a) shall include all information that is relevant to European Banking Authority’s role in group resolution planning.
(4)The information transmitted to the authorities mentioned in paragraph
(2)(b), (c), (
  1. d)and (
  2. e)shall include at a minimum all information that is relevant to the subsidiary or significant branch concerned.
(5)The resolution authority shall not be obliged to transmit information relating to subsidiaries established in third countries without the consent

the relevant third-country competent authority or third-country resolution authority concerned. Resolution authority as group-level resolution authority. 23.

(1)Where the resolution authority is the group-level resolution authority for a group, it shall prepare and maintain the group resolution plan for that group, acting jointly with the resolution authorities referred to in the second subparagraph

Article 13

(1)

the Bank Recovery and Resolution Directive through resolution colleges.

(2)The resolution authority shall prepare and maintain the plan referred to in paragraph
(1)after consulting any relevant Union competent authorities, including the Union competent authorities

the jurisdictions in which any significant branches are located.

(3)The resolution authority may, at its discretion and subject to the confidentiality requirements

Article 98

the Bank Recovery and Resolution Directive and Regulation 162, in preparing the plan referred to in paragraph

(1), also consult third-country resolution authorities

jurisdictions in which the group has established subsidiaries or financial holding companies or significant branches as referred to in Article 51

the Capital Requirements Directive.

(4)Where— (
  1. a)an institution, or (
  2. b)the competent authority becomes aware

any change to— (

  1. i)the legal or organisational structure, (
  2. ii)the business, or (iii) the financial position,

a group (including any group entity) that could have a material effect on, or require a change to, a group resolution plan, it shall promptly inform the resolution authority in writing.

(5)Subject to paragraph
(6), the resolution authority shall review group resolution plans, and update them where appropriate, after any material change to the legal or organisational structure, to the business or to the financial position

the group including any group entity that could have a material effect on or require a change to the plan.

(6)The resolution authority shall review group resolution plans, and update them where appropriate, at least annually. Assessment

group resolution plan. 24.

(1)Where the resolution authority is a group-level resolution authority, the group resolution plan shall be adopted by a joint decision

the resolution authority and Union resolution authorities

subsidiaries in other Member States.

(2)The resolution authority shall endeavour to reach a joint decision on a group resolution plan within 4 months

the date

transmission

the information, referred to in Regulation 22

(1).
(3)The resolution authority, whether in its role as group-level resolution authority or resolution authority for a subsidiary, may request the European Banking Authority to assist in reaching a joint decision in accordance with Article 19

Regulation (EU) No 1093/2010 but the resolution authority shall not refer the matter to that other authority after the end

the four-month period or after a joint decision has been reached.

(4)Where the authorities have not reached a joint decision within 4 months, the resolution authority, where it is the group-level resolution authority, shall make its own decision on the adoption

the group resolution plan.

(5)A decision under paragraph
(4)shall— (
  1. a)be fully reasoned, (
  2. b)take into account the views and reservations

Union resolution authorities, and (c) be provided to the Union parent undertaking by the resolution authority.

(6)Where at the end

the four-month period referred to in paragraph

(2)any Union resolution authority, or the resolution authority, has referred the matter to the European Banking Authority in accordance with Article 19

Regulation (EU) No 1093/2010, the resolution authority shall defer the decision and await any decision that that other authority may take in accordance with Article 19

(3)

that Regulation, and shall take its decision in accordance with any decision

that other authority.

(7)The four-month period under paragraph
(6)shall be deemed to be the conciliation period within the meaning

Regulation (EU) No 1093/2010 and where the European Banking Authority has not made a decision within one month

the end

that four-month period, the decision

the resolution authority as group-level resolution authority shall apply.

(8)Where a group has a subsidiary in the State and the resolution authority is the resolution authority

that subsidiary for the purposes

the Bank Recovery and Resolution Directive, the resolution authority shall endeavour to reach a joint decision with other resolution authorities on the adoption

the group resolution plan for that group.

(9)Where the Union resolution authorities and the resolution authority have not made a joint decision within 4 months under paragraph
(8), the resolution authority, as resolution authority

the subsidiary, shall make its own decision and shall draw up and maintain a resolution plan for the entities under its jurisdiction.

(10)A decision under paragraph
(9)shall— (
  1. a)be fully reasoned, (
  2. b)set out the reasons for disagreement with the proposed group resolution plan, (
  3. c)take into account the views and reservations

the Union competent authorities and Union resolution authorities concerned, and (d) be notified to the other members

the resolution college by the resolution authority.

(11)Where, at the end

the four-month period referred to in paragraph

(2), any Union resolution authority or the resolution authority has referred the matter to the European Banking Authority in accordance with Article 19

Regulation (EU) No 1093/2010, the resolution authority shall defer the decision and await any decision that that other authority may take in accordance with Article 19

(3)

that Regulation, and shall take its decision in accordance with any decision

that other authority.

(12)The four-month period under paragraph
(9)shall be deemed to be the conciliation period within the meaning

Regulation (EU) No 1093/2010 and where the European Banking Authority has not made a decision within one month

the end

that four-month period, the decision

the resolution authority in relation to the subsidiary shall apply.

(13)Where a Union resolution authority has made its own decision under Article 13
(6)

the Bank Recovery and Resolution Directive, the resolution authority shall not be prevented from reaching a joint decision with the relevant Union resolution authorities on a group resolution plan covering the group entities in the State and in the Member States

those other resolution authorities.

(14)Any joint decision or decision taken by a Union resolution authority in the absence

a joint decision under Article 13

the Bank Recovery and Resolution Directive shall be recognised as conclusive and applied by the resolution authority.

(15)Where the resolution authority is the group-level resolution authority and a joint decision has been taken in relation to the group resolution plan, the resolution authority shall initiate a reassessment

that plan if any

the Union resolution authorities responsible for subsidiaries in other Member States assesses under Article 13

(9)

the Bank Recovery and Resolution Directive that the group resolution plan impinges on the fiscal responsibilities

its Member State.

(16)Where— (a) a group has a subsidiary in the State and the resolution authority is the resolution authority for the purposes

the Bank Recovery and Resolution Directive

that subsidiary, (b) a joint decision has been taken by one or more

the relevant Union resolution authorities in relation to the group resolution plan, and (c) the resolution authority disagrees with some or all

the group resolution plan, the resolution authority may assess whether the subject matter

the disagreement might in any way impinge on the fiscal responsibilities

the State.

(17)Following an assessment under paragraph
(16), the resolution authority shall immediately notify the European Banking Authority and the other members

the resolution college

any determination that some or all

a group resolution plan may impinge on the fiscal responsibilities

the State. Transmission

resolution plans by resolution authority. 25.

(1)The resolution authority shall transmit resolution plans and any amendments thereto to the competent authority.
(2)Where the resolution authority is the group-level resolution authority, it shall transmit the group resolution plan and any amendments thereto to the relevant Union competent authorities. Chapter 2 Resolvability Assessment

resolvability for institutions. 26.

(1)The resolution authority shall, having consulted the competent authority and the Union resolution authorities

the jurisdictions in which a significant branch is located insofar as is relevant to the significant branch, assess the extent to which an institution which is not part

a group is resolvable without the assumption

any

the matters referred to in Regulation 17

(10).
(2)An institution shall be considered resolvable where the resolution authority assesses that it is feasible and credible that the resolution authority would be capable

— (

  1. a)either— (
  2. i)taking resolution action in respect

the institution, or (

  1. ii)winding up the institution under normal insolvency proceedings, (
  2. b)avoiding to the maximum extent possible any significant adverse effect on the financial system, including in circumstances

general financial instability or adverse system-wide events within the State or other Member States or the Union, and (c) ensuring the continuity

any critical functions carried out by the institution.

(3)Where an institution is considered not to be resolvable, the resolution authority shall as soon as practicable notify the European Banking Authority in writing.
(4)When assessing the resolvability

an institution, the resolution authority shall, at a minimum, examine the matters specified in Part 3

the Schedule.

(5)The resolution authority shall carry out the resolvability assessment at the same time as, and for the purposes

preparing and updating, the resolution plan in accordance with Regulation 17. Assessment

resolvability for groups. 27.

(1)Where the resolution authority is the group-level resolution authority it shall, together with the relevant Union resolution authorities

subsidiaries

that group, assess the extent to which groups are resolvable without the assumption

any

the matters referred to in Regulation 17

(10).
(2)Prior to carrying out the assessment referred to in paragraph
(1), the resolution authority shall consult the following: (
  1. a)the competent authority; (
  2. b)the Union competent authorities

subsidiaries; (c) Union resolution authorities

the jurisdictions in which significant branches are located insofar as is relevant to the significant branch.

(3)A group shall be considered resolvable if the resolution authority, together with the relevant Union resolution authorities

subsidiaries

that group, assesses that it is feasible and credible that the resolution authorities would be capable

— (

  1. a)either— (
  2. i)taking resolution action in respect

group entities, or (

  1. ii)winding up group entities under normal insolvency proceedings, (
  2. b)avoiding to the maximum extent possible any significant adverse effect on the financial system, including in circumstances

general financial instability or adverse system-wide events within the State or other Member States or the Union, and (c) ensuring the continuity

any critical functions carried out by the group, where they can easily be separated in a timely manner, or by other means.

(4)The assessment

group resolvability shall be taken into consideration by the resolution colleges referred to in Regulation 152.

(5)For the purposes

this assessment

group resolvability referred to in paragraph

(1), the resolution authority shall, as a minimum, examine the matters specified in Part 3

the Schedule.

(6)The resolution authority shall carry out the assessment

group resolvability under this Regulation at the same time as and for the purposes

preparing and updating the group resolution plan in accordance with Regulation 21 and in making the assessment, the resolution authority shall comply with the decision-making procedure set out in Reglations 22 to 24.

(7)Where the resolution authority, as group-level resolution authority, assesses that a group is not resolvable, the resolution authority shall promptly notify the European Banking Authority in writing. Powers to address or remove impediments to resolvability. 28.
(1)Where the resolution authority has assessed the resolvability

an institution in accordance with Regulations 26 and 27, and has determined that there are substantive impediments to the resolvability

that institution, it shall notify that determination, and those impediments, in writing to the following: (

  1. a)the institution concerned; (
  2. b)the competent authority; (
  3. c)Union resolution authorities

jurisdictions in which any significant branches

the institution are located.

(2)Within 4 months

the date

receipt

a notification under paragraph

(1)(a), the institution concerned shall propose to the resolution authority possible measures to address or remove the substantive impediments identified in the notification.
(3)The resolution authority, after consulting the competent authority, shall assess whether the measures referred to in paragraph
(2)would effectively address or remove the substantive impediments.
(4)Where the resolution authority assesses in accordance with paragraph
(3)that the measures proposed by an institution would not effectively reduce or remove the impediments in question, it shall, either directly or indirectly through the competent authority, direct the institution to take such alternative measures that may achieve that objective, and notify in writing those alternative measures to the institution.
(5)On receipt

a notification under paragraph

(4), the institution shall propose, within one month, a plan in writing to implement the alternative measures.
(6)Before deciding on alternative measures referred to in paragraph
(4), the resolution authority, after consulting the competent authority and, where appropriate, the national macro prudential authority, shall consider the potential effect

those measures on— (

  1. a)the institution concerned, (
  2. b)on the internal market for financial services, and (
  3. c)on the financial stability in other Member States and Union as a whole.

(7)In identifying the alternative measures referred to in paragraph
(4), the resolution authority shall— (a) demonstrate how the measures proposed by the institution under paragraph
(2)would not be sufficient to remove the impediments to resolvability, (
  1. b)take into account— (
  2. i)any threat to financial stability posed by those impediments to resolvability, and (
  3. ii)the effect that the alternative measures proposed would have on the business

the institution, its stability and its ability to contribute to the economy, and (c) demonstrate how the the alternative measures proposed would be proportionate in removing the impediments to resolvability.

(8)Any determination under paragraph
(1)or direction under paragraph
(4)shall be supported by reasons for the determination or direction, as the case may be, and, in the case

a direction under paragraph

(4), shall indicate how the decision complies with the requirement for proportionate application set out in paragraph
(7).
(9)The obligations for the resolution authority to prepare resolution plans and reach joint decisions on group resolution plans shall be suspended upon a notification referred to in paragraph
(1)until either— (a) the measures proposed by the institution pursuant to paragraph
(2)are accepted by the resolution authority, or (b) the resolution authority directs pursuant to paragraph
(4)the institution to take alternative measures.
(10)For the purposes

paragraph

(4), the resolution authority may direct the institution to take one or more

the following measures: (

  1. a)revise any intra-group financing agreement or review the absence thereof; (
  2. b)put in place service agreements, whether with other group entities or third parties, to cover the provision

critical functions; (

  1. c)limit its maximum individual or aggregate exposures; (
  2. d)provide additional information relevant for resolution purposes, including through regular reporting requirements; (
  3. e)divest specific assets; (
  4. f)prevent, limit or cease specific existing or proposed activities; (
  5. g)restrict or cease the development

new or existing business lines or sale

new or existing products; (h) make changes to legal or operational structures

the institution or any group entity, either directly or indirectly under its control, in order to reduce complexity and ensure that critical functions can be legally and operationally separated from other functions through the application

the resolution tools; (

  1. i)establish a parent financial holding company in a Member State or a Union parent financial holding company; (
  2. j)issue eligible liabilities to meet the requirements

Regulation 81; (k) take other steps to meet the minimum requirement for own funds and eligible liabilities under Regulation 81, including in particular to attempt to renegotiate any eligible liability, additional Tier 1 instrument or Tier 2 instrument it has issued, with a view to ensuring that any decision

the resolution authority to write-down or convert that liability or instrument would be effected under the law

the jurisdiction governing that liability or instrument; (l) where an institution is the subsidiary

a mixed-activity holding company, require the mixed-activity holding company to set up a separate financial holding company to control the institution where this is necessary to facilitate the resolution

the institution and to avoid resolution action adversely affecting the non-financial part

the group.

(11)A direction under paragraph
(10)(i) may also be issued to a parent undertaking

the institution concerned.

(12)A direction under pargaraph
(10)(
  1. j)or (
  2. k)may also be issued to an entity referred to in Regulation 2
(1)(b) to (i).
(13)A direction under paragraph
(4), or an assessment under paragraph
(3), by the resolution authority is an appealable decision for the purposes

Part VII

A

the Act

1942. Powers to address or remove impediments to resolvability: group treatment. 29.

(1)Where the resolution authority is the group-level resolution authority it shall, together with the relevant Union resolution authorities

subsidiaries, consider the assessment under Regulation 27 within the resolution college and shall endeavour to reach a joint decision on the application

measures identified in accordance with Regulation 28

(4)in relation to all institutions that are part

the group.

(2)Before considering the assessment

resolvability, the resolution authority and the relevant Union resolution authorities shall consult the supervisory college and the Union resolution authorities

any jurisdictions in which significant branches are located insofar as is relevant to the significant branch.

(3)Where the resolution authority is the group-level resolution authority, it shall, subject to paragraphs
(4)and
(6), prepare a report analysing the substantive impediments to the effective application

the resolution tools and the exercise

the resolution powers in relation to the group.

(4)The report referred to in paragraph
(3)shall, after considering the impact on the group’s business model, recommend any proportionate and targeted measures that, in the resolution authority’s opinion, are necessary or appropriate to remove those impediments.
(5)Any joint decision or decision taken by a Union resolution authority in the absence

a joint decision under this Regulation shall be recognised as conclusive and applied by the resolution authority.

(6)The resolution authority shall prepare the report referred to in paragraph
(3)in cooperation with the competent authority and the European Banking Authority in accordance with Article 25
(1)

Regulation (EU) No 1093/2010, after consulting the Union competent authorities concerned.

(7)The resolution authority shall transmit the report referred to in paragraph
(3)to the following: (a) the parent undertaking

the group concerned; (b) the Union resolution authorities

subsidiaries, which will provide it to the subsidiaries under their remit; (c) the Union resolution authorities

any jurisdictions in which significant branches are located.

(8)Where the resolution authority is the resolution authority

a subsidiary for the purposes

the Bank Recovery and Resolution Directive, and a group-level resolution authority submits a report to the resolution authority in accordance with Article 18

(2)

the Bank Recovery and Resolution Directive, the resolution authority shall transmit that report to the subsidiary.

(9)Within 4 months

the date

receipt

the report referred to in paragraph

(3), the parent undertaking may— (
  1. a)submit observations, and (
  2. b)propose alternative measures to remedy the impediments identified in the report, to the resolution authority.
(10)The resolution authority shall communicate any measure proposed by the parent undertaking under paragraph
(9)(
  1. b)to the following: (
  2. a)the competent authority; (
  3. b)the European Banking Authority; (
  4. c)the Union resolution authorities

subsidiaries

the group; (d) the Union resolution authorities

any jurisdictions in which significant branches are located insofar as is relevant to the significant branch.

(11)The resolution authority shall endeavour to reach a joint decision with the Union resolution authorities

the subsidiaries within the resolution college regarding the identification

the material impediments and, if necessary, the assessment

the measures proposed by the parent undertaking and the measures required by the authorities to address or remove the impediments, which shall take into account the potential impact

the measures in all the Member States where the group operates.

(12)Before attempting to reach a joint decision under paragraph
(11), the resolution authority and the Union resolution authorities shall consult the following: (
  1. a)the consolidating supervisor; (
  2. b)the Union competent authorities

subsidiaries; (c) the Union resolution authorities

any jurisdictions in which significant branches are located insofar as is relevant to the significant branch.

(13)The resolution authority shall endeavour to reach the joint decision referred to in paragraph
(11)within 4 months

the submission

any observations by the parent undertaking, under paragraph

(9), or at the expiry

the four-month period referred to in that paragraph

(9).
(14)Where a joint decision referred to in paragraph
(11)is reached, the resolution authority shall provide the decision and reasons for the decision, in writing, to the parent undertaking.
(15)The resolution authority, whether in its role as— (
  1. a)a group-level resolution authority, or (
  2. b)a resolution authority for a subsidiary for the purposes

the Bank Recovery and Resolution Directive, may request the European Banking Authority to assist in reaching a joint decision in accordance with Article 31(c)

Regulation (EU) No 1093/2010 or, where the joint decision concerns any measure referred to in subparagraphs (h), (i) and (l)

Regulation 28

(10), under Article 19

that Regulation.

(16)The resolution authority shall not refer a matter to the European Banking Authority, under paragraph
(14), after the end

the four-month period or after a joint decision has been reached.

(17)Where the resolution authority has not reached a joint decision with the relevant Union resolution authorities

subsidiaries, it shall make its own decision on any appropriate measures to be taken in under Regulation 28

(4)at the group level.
(18)The resolution authority’s decision, under paragraph
(17)— (a) shall be fully reasoned and shall take into account the views and reservations

the relevant Union resolution authorities, and (b) shall be provided by the resolution authority along with the reasons for the decision to the parent undertaking.

(19)Where a Union resolution authority or the resolution authority, in its capacity as resolution authority for the purposes

the Bank Recovery and Resolution Directive,

a subsidiary has referred a direction to require the group to take any measure, referred to in subparagraphs (h), (i) and (l)

Regulation 28

(10), to the European Banking Authority at the end

the four-month period referred to in paragraph

(13)the resolution authority shall defer its decision under paragraph
(17)and await any decision that that other authority may take in accordance with Article 19
(3)

Regulation (EU) No 1093/2010.

(20)Where a matter is referred to the European Banking Authority under paragraph
(19), the resolution authority shall take its decision in accordance with any decision

that other authority and the four-month period referred to in paragraph

(13)shall be deemed to be the conciliation period within the meaning

Regulation (EU) No 1093/2010.

(21)Where the European Banking Authority has not made a decision within one month after referral to it under paragraph
(15), the decision

the resolution authority as group-level resolution authority shall apply.

(22)Where the resolution authority is the resolution authority

a subsidiary for the purposes

the Bank Recovery and Resolution Directive, it shall endeavour to reach a joint decision with the Union resolution authorities within the resolution college regarding the identification

material impediments to the resolvability

the group and if necessary the assessment

measures proposed by the parent undertaking and any measures required by the resolution authorities to address or remove those impediments.

(23)Where the resolution authority has not reached a joint decision with the relevant Union resolution authorities, it shall make its own decision on appropriate measures to address or remove impediments to resolvability to be taken at an individual level by any subsidiaries in the State in accordance with Regulation 28
(4).
(24)The resolution authority’s decision, under paragraph
(23)— (a) shall be fully reasoned and shall take into account the views and reservations

the Union resolution authorities, and (b) shall be provided by the resolution authority along with the reasons for the decision to the subsidiary and to the group-level resolution authority.

(25)Where a Union resolution authority has referred a direction to require the group to take any measure referred to in Regulation 28
(10)(h), (
  1. i)and (
  2. l)to the European Banking Authority at the end

the four-month period, the resolution authority shall defer its decision under paragraph

(23)and await any decision that that other authority may take in accordance with Article 19
(3)

Regulation (EU) No 1093/2010.

(26)Where a matter is referred to the European Banking Authority under paragraph
(25), the resolution authority shall take its decision in conformity with the decision

that other authority and the four-month period shall be deemed t

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