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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 F1....

(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—

    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...

Annotations

Textual amendments

F1

Words in art. 16(1)(b) omitted (31.12.2020) by virtue of The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 10(2); 2020 c. 1, Sch. 5 para. 1(1)

F2

Word in art. 16(2) substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 10(3)(a); 2020 c. 1, Sch. 5 para. 1(1)

F3

Words in art. 16(2) omitted (31.12.2020) by virtue of The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 10(3)(b); 2020 c. 1, Sch. 5 para. 1(1)

Notes on the whole SI

Textual amendments

F1

Order revoked (14.12.2023 for the revocation of art. 227) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 1 Pt. 2 (with s. 1(4)); S.I. 2023/1382, reg. 2(c)(x)