Home › Banking & Credit Institutions › SAG-EN

SAG-EN

Recovery and Resolution Act
SAG-EN · official text on eucite.com in-house translation

🇩🇪 Auf Deutsch lesen (original text)

This English text is a careful, terminology-researched translation prepared by eucite.com — not an official government translation. The German original linked above is the legally authoritative text.

Sections

Part 1 General Provisions

• Section 1 — Scope of application; relationship to the SRM Regulation; implementation of decisions of the Board
• Section 2 — Definitions
• Section 3 — Resolution authority; supervisory authority
• Section 4 — Confidentiality of information; personal data; rights to information
• Section 5 — Duty of confidentiality
• Section 6 — Permissible exchange of information between authorities under this Act
• Section 7 — Passing on of information to other bodies
• Section 8 — Confidentiality vis-à-vis third countries
• Section 9 — Preliminary confidentiality review for other passing on of information
• Section 10 — Other provisions
• Section 11 — Access to information

Part 2 Supervisory Provisions and Requirements for Recovery Preparation and Early Intervention

Chapter 1 Recovery Planning

• Section 12 — Recovery planning
• Section 13 — Design of recovery plans
• Section 14 — Special requirements for the design of group recovery plans; individual recovery plan
• Section 15 — Review and assessment of recovery plans
• Section 16 — Measures in the event of deficiencies in recovery plans
• Section 17 — Procedure for group recovery plans and deficiencies in group recovery plans, where the supervisory authority is at the same time the consolidating supervisor
• Section 18 — Procedure for group recovery plans and deficiencies in group recovery plans, where the supervisory authority is not the consolidating supervisor
• Section 19 — Simplified requirements
• Section 20 — Exemption of institutions belonging to institutional protection schemes
• Section 21 — Duty of confidentiality of institutions and group entities
• Section 21a — Authorisation to issue statutory instruments

Chapter 2 Intragroup Financial Support

• Section 22 — Intragroup financial support agreement
• Section 23 — Permissibility and content of an intragroup financial support agreement
• Section 24 — Prohibition of assignment
• Section 25 — Authorisation requirement
• Section 26 — Authorisation procedure where the superordinate undertaking is domiciled in Germany
• Section 27 — Authorisation procedure where the superordinate undertaking is domiciled in another Member State
• Section 28 — Forwarding to the resolution authority
• Section 29 — Obtaining the consent of shareholders; reporting obligations to shareholders
• Section 30 — Conditions for the provision of intragroup financial support; authorisation to issue statutory instruments
• Section 31 — Decisions on the provision and acceptance of financial support
• Section 32 — Notification of the intended provision of intragroup financial support
• Section 33 — Decision of the supervisory authority on the provision of intragroup financial support by an undertaking domiciled in Germany
• Section 34 — Involvement of the supervisory authority in the decision on the provision of intragroup financial support by an undertaking domiciled in another Member State
• Section 35 — Disclosure obligations

Chapter 3 Early Intervention

• Section 36 — Early intervention measures; authorisation to issue statutory instruments
• Section 37 — Removal of the management body
• Section 38 — Temporary administrator
• Section 39 — Coordination of early intervention measures and appointment of a temporary administrator for groups

Part 3 Resolution-Law Provisions and Requirements for Preparing Restructuring and Resolution

Chapter 1 Resolution Planning

• Section 40 — Preparation and updating of resolution plans
• Section 41 — Simplified requirements; authorisation to issue statutory instruments
• Section 42 — Cooperation of the institution; authorisation to issue statutory instruments
• Section 42a — Electronic communication; authorisation to issue statutory instruments
• Section 43 — Central custody and management of financial contracts
• Section 44 — Information of the resolution authority regarding assets and liabilities
• Section 45 — Cooperation of third parties; authorisation to issue statutory instruments
• Section 46 — Group resolution plans; cooperation of EU parent undertakings and of third parties
• Section 47 — Procedure for group resolution plans where the resolution authority is the authority responsible for group resolution
• Section 48 — Procedure for group resolution plans where the resolution authority is not the authority responsible for group resolution
• Section 49 — Application and calculation of the minimum requirement for own funds and eligible liabilities
• Section 49a — Exemption from the minimum requirement for own funds and eligible liabilities
• Section 49b — Eligible liabilities for resolution entities
• Section 49c — Determination of the minimum requirement for own funds and eligible liabilities
• Section 49d — Determination of the minimum requirement for own funds and eligible liabilities for resolution entities of global systemically important institutions and for significant subsidiary undertakings established in the Union of global systemically important non-EU institutions
• Section 49e — Application of the minimum requirement for own funds and eligible liabilities to resolution entities
• Section 49f — Application of the minimum requirement for own funds and eligible liabilities to undertakings that are not themselves resolution entities
• Section 49g — Exemptions for a central body and CRR credit institutions permanently affiliated to a central body
• Section 49h — Application of the minimum requirement for own funds and eligible liabilities to wind-down entities
• Section 50 — Joint decision on the minimum requirement for own funds and eligible liabilities
• Section 51 — Reporting and disclosure of the requirement
• Section 52 — Reporting by the resolution authority to the European Banking Authority
• Section 53 — Breaches of the minimum requirement for own funds and eligible liabilities
• Section 54 — Transitional provisions and provisions following resolution
• Section 55 — Contractual recognition of the creditor participation instrument and of the instrument for the participation of holders of relevant capital instruments in third countries

Division 2 Authorised Capital and Other Common Equity Tier 1 Instruments

• Section 56 — Removal of procedural impediments to the creditor participation instrument

Chapter 3 Resolvability

• Section 57 — Assessment of the resolvability of institutions
• Section 58 — Assessment of the resolvability of groups
• Section 58a — Power to prohibit certain distributions
• Section 59 — Reduction and removal of impediments to resolvability at institutions; authorisation to issue statutory instruments
• Section 60 — Reduction and removal of impediments to resolvability at groups
• Section 60a — Contractual recognition of powers to temporarily suspend termination rights

Chapter 4 Establishment of Bridge Institutions and Asset Management Vehicles

• Section 61 — Establishment of bridge institutions and asset management vehicles

Part 4 Resolution

Chapter 1 Resolution Power, Conditions and Further Powers

• Section 62 — Resolution conditions in respect of institutions
• Section 63 — Failing or likely to fail; authorisation to issue statutory instruments
• Section 64 — Resolution conditions in respect of financial institutions and holding companies
• Section 65 — Conditions for applying the instrument for the participation of holders of relevant capital instruments and eligible liabilities
• Section 66 — Determination of the conditions for applying the instrument for the participation of holders of relevant capital instruments and eligible liabilities at group entities
• Section 66a — Power to suspend contractual obligations where an institution is failing or likely to fail
• Section 67 — Resolution objectives
• Section 68 — General principles governing resolution
• Section 69 — Valuation; judicial review
• Section 70 — Independent expert valuer
• Section 71 — Purposes of the valuation
• Section 72 — Principles of the valuation
• Section 73 — Scope of the valuation; valuation report and supplementary components
• Section 74 — Provisional valuation
• Section 75 — Definitive valuation
• Section 76 — Authorisation to issue statutory instruments
• Section 77 — Directing resolution actions
• Section 78 — General powers of the resolution authority; on-site inspections
• Section 79 — Supporting measures
• Section 80 — Provision of services and facilities
• Section 81 — Power in respect of assets located in third countries
• Section 82 — Power to suspend contractual obligations
• Section 83 — Power to temporarily prohibit the enforcement of security interests
• Section 84 — Power to temporarily suspend termination rights
• Section 85 — Cancellation of the aggregate amount of variable remuneration and of deferred variable remuneration
• Section 86 — Powers of control
• Section 87 — Special administration; joint special manager for group entities
• Section 88 — Rights, functions and powers of the special manager
• Section 89 — Instrument for the participation of holders of relevant capital instruments
• Section 90 — Creditor participation instrument
• Section 91 — Bail-inable liabilities
• Section 92 — Exclusion of the application of the creditor participation instrument in individual cases
• Section 93 — Application of the creditor participation instrument to liabilities arising from derivatives
• Section 94 — Compensating contributions from the Restructuring Fund
• Section 95 — Purposes of the creditor participation instrument
• Section 96 — Determination of the amount of relevant capital instruments and liabilities to be written down or converted
• Section 97 — Cascade of liability
• Section 98 — Conversion rate; authorisation to issue statutory instruments
• Section 99 — Further effects of applying the instrument for the participation of holders of relevant capital instruments and the creditor participation instrument
• Section 100 — Treatment of shareholders and holders of Common Equity Tier 1 instruments in applying the instrument for the participation of holders of relevant capital instruments and the creditor participation instrument
• Section 101 — Resolution powers on applying the instrument for the participation of holders of relevant capital instruments and the creditor participation instrument
• Section 102 — Requirement to prepare a business reorganisation plan
• Section 103 — Requirements for the business reorganisation plan
• Section 104 — Assessment and approval of the business reorganisation plan
• Section 105 — Implementation of the business reorganisation plan; later revisions
• Section 106 — Admission to trading and inclusion in trading of newly issued securities

Division 2 Transfer of Shares, Assets, Liabilities and Legal Relationships

• Section 107 — Transfer
• Section 108 — Multiple application
• Section 109 — Consent of the recipient legal entity
• Section 110 — Selection of the objects of transfer
• Section 111 — Assessment of offers; consideration; compensation liability
• Section 112 — Arm's-length comparison
• Section 113 — Effects of the resolution order on transfer
• Section 114 — Effectiveness of the transfer
• Section 115 — Registration of the transfer
• Section 116 — Obligation to file for insolvency; liability of the recipient legal entity
• Section 117 — Objects of transfer governed by foreign law
• Section 118 — Necessary permits, authorisations and approvals; supervisory requirements; membership of, and access to, financial market infrastructures
• Section 119 — Domestic permit, authorisation and approval procedures
• Section 120 — Special provisions for the procedure under section 2c of the Banking Act
• Section 121 — Authorisation procedures in other Member States and third countries
• Section 122 — Participation of the resolution authority in permit, authorisation, or approval procedures of a foreign authority
• Section 123 — Mutual support of the legal entities concerned
• Section 124 — Measures at the transferring legal entity
• Section 125 — Measures at the recipient legal entity
• Section 126 — Marketing process; authorisation to issue statutory instruments
• Section 127 — Retransfers
• Section 128 — Constitution of the bridge institution
• Section 129 — Marketing or liquidation of the bridge institution
• Section 130 — Financial position of the bridge institution
• Section 131 — Retransfers and onward transfers
• Section 132 — Additional conditions for application; authorisation to issue statutory instruments
• Section 133 — Constitution of the asset management vehicle
• Section 134 — Special provisions on consideration
• Section 135 — Retransfer

Division 3 Resolution Order; Procedural Provisions; Change of Legal Form; Recourse to Deposit Guarantee Schemes; Protective Provisions

• Section 136 — Content of the resolution order
• Section 137 — Issuance and publication of the resolution order
• Section 138 — Notification obligations in the case of a failing or likely to fail
• Section 139 — Decision of the resolution authority
• Section 140 — Procedural obligations of the resolution authority
• Section 141 — Resistance of resolution actions to insolvency; avoidance
• Section 142 — Possibility of deduction
• Section 143 — Claims for damages against members and former members of a governing body
• Section 144 — Exclusion of certain contractual terms in early intervention and resolution
• Section 145 — Recourse to deposit guarantee schemes in resolution
• Section 146 — Comparison with the outcome of hypothetical insolvency proceedings; authorisation to issue statutory instruments
• Section 147 — Protective provisions for shareholders and creditors
• Section 148 — Protective provisions for social plans
• Section 149 — Directing a change of legal form

Part 5 Special Provisions for Central Counterparties

• Section 152a — Scope
• Section 152b — Competence
• Section 152c — Independent expert
• Section 152d — Resolution tools; power of direction
• Section 152e — Compensation for the shortfall amount
• Section 152f — Content of the resolution order
• Section 152g — Procedural provisions, deposit guarantee, social plans
• Section 152h — Legal remedies
• Section 152i — Authorisation to issue statutory instruments
• Section 152j — Special powers under Regulation (EU) 2021/23

Part 6 Cross-Border Group Resolution and Relations with Third Countries

Chapter 1 Recognition of Measures of the Authorities of Other Member States

• Section 153 — Effectiveness of crisis management measures or crisis prevention measures of other Member States
• Section 154 — General principles for decision-making involving one or more authorities of other Member States
• Section 155 — Competence of the resolution authority
• Section 156 — Resolution college
• Section 157 — Members of the resolution college and further participants
• Section 158 — Organisation of the resolution college
• Section 159 — European resolution colleges
• Section 160 — Exchange of information with authorities and ministries of other Member States

Division 2 Group Resolution Where the Subsidiary Undertaking Is Not an EU Parent Undertaking

• Section 161 — Transmission of information on the resolution conditions
• Section 162 — Course of action where the resolution authority is not the authority responsible for group resolution
• Section 163 — Course of action where the resolution authority is the authority responsible for group resolution
• Section 164 — Group resolution scheme
• Section 165 — Prompt implementation of measures

Division 3 Group Resolution Where an EU Parent Undertaking Is Involved

• Section 166 — Group resolution where an EU parent undertaking is involved
• Section 167 — Agreements with third countries
• Section 168 — Cooperation with third-country authorities
• Section 169 — Recognition and enforcement of third-country resolution proceedings
• Section 170 — Right to refuse recognition or enforcement of third-country resolution proceedings
• Section 171 — Resolution of domestic Union branches

Part 7 Regulatory Offence Provisions

• Section 172 — Regulatory offence provisions
• Section 172a — Regulatory offence provisions relating to Regulation (EU) 2021/23
• Section 173 — Competent administrative authority
• Section 174 — Temporary prohibition on carrying on an activity; publication of measures
• Section 175 — Participation of the resolution authority and notifications in criminal matters

Part 8 Further Powers

Chapter 1 Measures of the Board

• Section 176 — Support for investigations; coercive measures
• Section 177 — On-site inspections under the SRM Regulation
• Section 178 — Enforcement of fines and periodic penalty payments imposed by the Board

Chapter 2 Investigatory Powers of the Resolution Authority

• Section 178a — Requests for information and production of documents
• Section 178b — Conducting reviews and on-site inspections

Part 9 Legal Remedies and Exclusion of Other Measures

• Section 179 — Legal protection
• Section 179a — Special provisions for administrative procedure
• Section 180 — Stay of court proceedings in civil matters
• Section 181 — Limitation of liability