Prudential Regulation Authority Rulebook

2.1

This Chapter applies to a firm that is not part of a group subject to consolidated supervision pursuant to Articles 111 and 112 of the CRD.

[Note: Art. 5(1) of the BRRD]

2.2

A firm must draw up and maintain a recovery plan providing for measures to be taken by the firm to restore its financial position following a significant deterioration of its financial situation.

[Note: Art. 5(1) of the BRRD]

2.3

A firm must submit its recovery plan to the PRA.

[Note: Art. 6(1) of the BRRD]

2.4

A firm must provide its recovery plan to the PRA by online submission through:

1. (1) email; or
2. (2) the appropriate systems made available to firms.

2.5

A recovery plan must not assume any access to or receipt of extraordinary public financial support.

[Note: Art. 5(3) of the BRRD]

2.6

A recovery plan must include, where applicable, an analysis of how and when the firm may apply, in the conditions addressed by the plan, for the use of central bank facilities and must identify those assets which would be expected to qualify as collateral.

[Note: Art. 5(4) of the BRRD]

2.7

The recovery plan must include the information set out in Section A of the Annex to the BRRD.

[Note: Art. 5(5) of the BRRD]

2.8

A recovery plan must include possible measures which could be taken by the firm where the conditions for early intervention are met.

[Note: Art. 5(5) of the BRRD]

2.9

A recovery plan must include appropriate conditions and procedures to ensure the timely implementation of recovery actions as well as a wide range of recovery options.

[Note: Art. 5(6) of the BRRD]

2.10

A recovery plan must contemplate a range of scenarios of severe macroeconomic and financial stress relevant to the firm’s specific conditions including system-wide events and stress specific to individual legal persons and to groups.

[Note: Art. 5(6) of the BRRD]

2.11

A firm must demonstrate to the PRA that the recovery plan meets the requirements set out in this Chapter and the following criteria:

1. (1) the implementation of the arrangements proposed in the recovery plan is reasonably likely to maintain or restore the viability and financial position of the institution or of the group, taking into account the preparatory measures that the institution has taken or has planned to take;
2. (2) the recovery plan and specific options within the recovery plan are reasonably likely to be implemented quickly and effectively in situations of financial stress and 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 plan within the same period.

[Note: Art. 6(1) of the BRRD]