# The Bank Recovery and Resolution (No. 2) Order 2014, Article 16: Application and interpretation of Chapter 2


(1) This Chapter applies where, in relation to a relevant group—
(a) the PRA or FCA is the consolidating supervisor; and
(b) a group entity submits a group recovery plan to the appropriate regulator for assessment ....
(2) 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—
(a)the UK parent undertaking, if it is an institution;
(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—
(c)whether the plan meets the criteria for assessment;
(d)whether group institutions should be required to draw up and submit recovery plans on an individual basis;
(e)whether the plan contains an impediment;
(f)whether a group entity should be required to revise the plan;
(g)whether an impediment has been adequately addressed in a revision of the plan;
(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
(i)where an impediment cannot be adequately addressed by specific changes to the plan or by business changes—
(i)whether a group entity should be directed to take relevant measures; and
(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—
(a)reduce the institution's risk profile, including its liquidity risk profile;
(b)review its structure and strategy;
(c)enable it to undertake timely recapitalisation;
(d)change its funding strategy in order to improve the resilience of core business lines and critical functions; or
(e)change its governance structure; and
...

---
Source: https://www.legislation.gov.uk/uksi/2014/3348/article/16 (the official version)
Page: https://openlegislation.uk/bank-recovery-and-resolution-no-2-order-2014/article-16
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.