Article 16 Application and interpretation of Chapter 2

This Chapter applies where, in relation to a relevant group—

In this Chapter—

• “business changes” means changes to the business of a group institution which would be made with the object of addressing an impediment;

• “four month period” means four months beginning with the date on which the appropriate regulator transmits a copy of the group recovery plan under article 17;

• “group institution” means—

  1. (a)

     the F2UK parent undertaking, if it is an institution;

  2. (b)

     a group subsidiary which is an institution;

• “impediment”, in relation to the group recovery plan, means any material deficiency or measure in the plan which would impede its implementation;

• “relevant matters”, in relation to the assessment of the group recovery plan, means the following matters for decision—

  1. (c)

     whether the plan meets the criteria for assessment;

  2. (d)

     whether group institutions should be required to draw up and submit recovery plans on an individual basis;

  3. (e)

     whether the plan contains an impediment;

  4. (f)

     whether a group entity should be required to revise the plan;

  5. (g)

     whether an impediment has been adequately addressed in a revision of the plan;

  6. (h)

     where an impediment has not been adequately addressed in a revision of the plan, whether it can be adequately addressed by directing a group entity to make specific changes to the plan; and

  7. (i)

     where an impediment cannot be adequately addressed by specific changes to the plan or by business changes—

     1. (i)

        whether a group entity should be directed to take relevant measures; and

     2. (ii)

        the terms of any direction to take relevant measures;

• “relevant measures” means measures to maintain or restore the viability and financial position of a group institution, including measures to—

  1. (a)

     reduce the institution's risk profile, including its liquidity risk profile;

  2. (b)

     review its structure and strategy;

  3. (c)

     enable it to undertake timely recapitalisation;

  4. (d)

     change its funding strategy in order to improve the resilience of core business lines and critical functions; or

  5. (e)

     change its governance structure; and

• F3...