Resolution Pack

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Application Provision

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1

Application and Definitions

1.1

Unless otherwise stated, this Part applies to a BRRD undertaking.

1.2

In this Part, the following definitions shall apply:

means a public authority or body officially recognised by national law which is empowered by national law to supervise institutions as part of the supervisory system in operation in the EEA State concerned or the European Central Bank with regard to the specific tasks conferred on it by Article 4 of Council Regulation (EU) No. 1024/2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions.

means a competent authority responsible under the CRD for the exercise of supervision on a consolidated basis of:
means a parent financial holding company in an EEA State which is not a subsidiary of an institution authorised in any EEA State or of another financial holding company or mixed financial holding company set up in any EEA State.
means a parent institution in an EEA State which is not a subsidiary of another institution authorised in an EEA State or of a financial holding company or mixed financial holding company set up in any EEA State.

means a parent mixed financial holding company in an EEA State which is not a subsidiary off an institution authorised in any EEA State or of another financial holding company or mixed financial holding company set up in any EEA State.
means the resolution authority in the EEA State in which the EEA consolidating supervisor is situated.

means a document containing the information necessary to draw up and implement a group resolution plan.

means a plan for the resolution of a group drawn up in accordance with Articles 12 and 13 of the BRRD.

means a financial holding company which is not itself a subsidiary of an institution authorised in the same EEA State, or of a financial holding company or mixed financial holding company set up in the same EEA State.

means a mixed financial holding company which is not itself a subsidiary of an institution authorised in the same EEA State, or of a financial holding company or mixed financial holding company set up in the same EEA State.

means an institution authorised in an EEA State which has an institution or financial institution as subsidiary or which holds a participation in such an institution or financial institution, and which is not itself a subsidiary of another institutions authorised in the same EEA State or of a financial holding company or mixed financial holding company set up in the same EEA State.

means an authority designated by an EEA State in accordance with Article 3 of the BRRD.

means a document containing the information necessary to draw up and implement a resolution plan.

means a resolution plan for a firm drawn up by the Bank of England in accordance with Article 37 of The Bank Recovery and Resolution (No. 2) Order 2014.

1.3

Unless otherwise defined, any italicised expression used in this Part and in the CRR has the same meaning as in the CRR.

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2

Resolution Pack

2.1

This Chapter:

  1. (1) applies to every firm which is not required to prepare, maintain and submit a group resolution pack under 3; but
  2. (2) does not apply to a firm that is a member of a group for which a group resolution pack has been submitted to the PRA under 3.

2.2

In this Chapter:

  1. (1) references to the taking of action include the taking of action by:
    1. (a) a firm;
    2. (b) any other person in the same group as a firm; and
    3. (c) a partnership of which a firm is a member;
  2. (2) references to the business of a firm include references to the business of:
    1. (a) any other person in the same group as the firm; and
    2. (b) a partnership of which the firm is a member.

2.3

A firm must prepare and maintain a resolution pack.

2.4

A firm must provide its resolution pack to the PRA by online submission through:

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

2.5

A resolution pack must contain sufficient information and analysis to facilitate the planning for or taking of action in the event of:

  1. (1) circumstances arising in which it is likely that the business (or any part of the business) of the firm will fail; or
  2. (2) the failure of the business (or any part of the business) of the firm.

2.6

In 2.5, references to the planning for or taking of action include the planning or taking of action by The Treasury or the Bank of England in relation to the possible exercise of any of their powers under the Banking Act 2009.

2.7

A resolution pack must take into account the wider business of the group of which the firm is a member.

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3

Group Resolution Pack

3.1

This Chapter applies to a BRRD undertaking which is:

  1. (1) an EEA parent undertaking unless the FCA is the EEA consolidating supervisor of its group; or
  2. (2) a firm controlled by an EEA parent financial holding company or an EEA parent mixed financial holding company if:
    1. (a) the holding company is not incorporated in the UK and does not have a place of business in the UK; and
    2. (b) the PRA is the EEA consolidating supervisor of the firm.

3.2

In this Chapter:
  1. (1) references to the taking of action include the taking of action by:
    1. (a) a BRRD undertaking;
    2. (b) any other person in the same group as a BRRD undertaking; and
    3. (c) a partnership of which a BRRD undertaking is a member;
  2. (2) references to the business of a BRRD undertaking include references to the business of:
    1. (a) any other person in the same group as the BRRD undertaking; and
    2. (b) a partnership of which the BRRD undertaking is a member.

3.3

A BRRD undertaking must prepare and maintain a group resolution pack.

3.4

A BRRD undertaking must submit its group resolution pack to the PRA if the PRA is the EEA consolidating supervisor and, in any other case, to the group-level resolution authority.

3.5

A BRRD undertaking required by 3.4 to submit its group resolution pack to the PRA must provide the group resolution pack to the PRA by online submission through:
  1. (1) email; or
  2. (2) the appropriate systems made available to BRRD undertakings.

3.6

A group resolution pack must contain sufficient information and analysis to facilitate the planning for or taking of action in the event of:
  1. (1) circumstances arising in which it is likely that the business (or any part of the business) of the BRRD undertaking or any other member of its group will fail; or
  2. (2) the failure of the business (or any part of the business) of the BRRD undertaking or any other member of its group.

3.7

In 3.6, references to the planning for or taking of action include the planning or taking of action by The Treasury or the Bank of England in relation to the possible exercise of any of their powers under the Banking Act 2009 in respect of any member of the group.

3.8

The group resolution pack must contain information concerning:
  1. (1) the BRRD undertaking; and
  2. (2) each of the other members of its group.

[Note: Art. 13(1) of the BRRD]

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4

Review of Resolution Pack and Group Resolution Pack

4.1

A firm required to prepare, maintain and submit to the PRA a resolution pack under 2 must:
  1. (1) keep the resolution pack up to date, which includes ensuring that the resolution pack is updated to reflect any material developments in the firm’s business; and
  2. (2) notify the PRA of any material changes made to the resolution pack promptly and, in any event, within one month of making any such change.

4.2

A BRRD undertaking required to prepare, maintain and submit a group resolution pack under 3 must keep the group resolution pack up to date, which includes ensuring that the group resolution pack is updated to reflect any material developments in its business and the business of other member of its group.

4.3

A BRRD undertaking required to prepare, maintain and submit to the PRA a group resolution pack under 3 must notify the PRA of any material changes made to the group resolution pack promptly and, in any event, within one month of making any such change.

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5

Governance Arrangements

5.1

A firm required to prepare, maintain and submit to the PRA a resolution pack under 2 must:
  1. (1) taking into account the nature, scale and complexity of its business, establish and maintain appropriate internal processes regarding the governance of its resolution pack;
  2. (2) ensure that its governing body is responsible for assessing, approving and overseeing the firm’s arrangements in place to produce the firm's resolution pack;
  3. (3) ensure that its audit committee periodically reviews these arrangements; and
  4. (4) nominate an executive director who is a member of the firm's governing body to have responsibility for the resolution pack and for overseeing the internal processes regarding its governance.

5.2

A BRRD undertaking required to prepare, maintain and submit a group resolution pack under 3 must:
  1. (1) taking into account the nature, scale and complexity of its business and the business of other members of its group, establish and maintain appropriate internal processes regarding the governance of its group resolution pack;
  2. (2) ensure that its governing body is responsible for assessing, approving and overseeing the arrangements in place to produce the group resolution pack;
  3. (3) ensure that its audit committee periodically reviews these arrangements; and
  4. (4) nominate an executive director who is a member of its governing body to have responsibility for the group resolution pack and for overseeing the internal processes regarding its governance.

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