Article 62 Assessment of group resolvability where the PRA or FCA is the consolidating supervisor

United Kingdom

(1)

This article applies in relation to a relevant group in respect of which the PRA or FCA is the consolidating supervisor.

(2)

For the purpose of drawing up or reviewing a group resolution plan the Bank must make an assessment of group resolvability F1in respect of the relevant group and, where there is more than one resolution group in the relevant group, in respect of each resolution group.

(3)

For the purpose of making the assessment of group resolvability the Bank must—

(a)

consider all relevant matters, including the matters set out in F2Schedule 2B and in any technical standards under paragraph (2A);

(b)

have regard to the circumstances under which F3resolution entities may meet the conditions for resolution, in particular—

(i)

supposing that there is a situation of widespread financial instability or an occurrence of events which pose systemic risk; and

(ii)

supposing that there is no such a situation or occurrence;

(c)

not assume that any of the group entities will be in receipt of—

(i)

extraordinary public financial support;

(ii)

emergency liquidity assistance; or

(iii)

any other liquidity assistance provided by the Bank under non-standard collateralisation, tenor and interest rate terms; and

(d)

consult—

(i)

the appropriate regulator;

F4(ii)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(iii)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

F5(3A)

The Bank may make technical standards providing—

(a)

further examples of relevant matters to be considered; and

(b)

criteria to be examined,

for the purposes of making the assessment of group resolvability.

(4)

Paragraph (3) has effect subject to the imposition of any simplified obligations (within the meaning given by article 9(3)(b)) with respect to the assessment of group resolvability.

(5)

The relevant group F6or a resolution group is deemed to be resolvable if the Bank concludes that it would be feasible and credible to F7apply the resolution tools or exercise resolution powers in respect of resolution entities, or take insolvency proceedings in respect of group entities while avoiding to the maximum extent possible any significant adverse effect on the financial system of F8the United Kingdom or the continuity of the critical functions of group entities.

F9(6)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(7)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

(8)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Annotations

Textual amendments

F1: Words in art. 62(2) inserted (28.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 36(a)
F2: Words in art. 62(3)(a) 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. 37(2)(a); 2020 c. 1, Sch. 5 para. 1(1)
F3: Words in art. 62(3)(b) substituted (28.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 36(b)
F4: Art. 62(3)(d)(ii)(iii) 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. 37(2)(b); 2020 c. 1, Sch. 5 para. 1(1)
F5: Art. 62(3A) inserted (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. 37(3); 2020 c. 1, Sch. 5 para. 1(1)
F6: Words in art. 62(5) inserted (28.12.2020) by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 36(c)(i)
F7: Words in art. 62(5) substituted (31.12.2020) by S.I. 2018/1394, Sch. 3 para. 37(4)(a) (as substituted by The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020 (S.I. 2020/1350), regs. 1(2), 77(3))
F8: Words in art. 62(5) 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. 37(4)(b); 2020 c. 1, Sch. 5 para. 1(1)
F9: Art. 62(6)-(8) 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. 37(5); 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)