Group resolution plans; cooperation of EU parent undertakings and of third parties

(1) Where the resolution authority is, under section 155, the authority responsible for group resolution, it draws up the group resolution plan. In doing so, the resolution authority cooperates, within resolution colleges, with the resolution authorities referred to in subsection (6), first sentence, point 5, and coordinates with the respective competent supervisory authorities. Where the requirements of section 8 are satisfied, the resolution authority may, in drawing up the group resolution plan, involve resolution authorities from third countries in which the group has subsidiary undertakings, financial holding companies, or significant branches. The group resolution plan should not have disproportionate effects on any Member State.
(2) The group resolution plan is drawn up on the basis of the information made available under subsection (5). The group resolution plan comprises a plan for the resolution of the group as a whole, either by taking action at the level of the EU parent undertaking or through a separation of the group and resolution of the subsidiary undertakings. The group resolution plan contains resolution actions in respect of 1. the EU parent undertaking, 2. the subsidiary undertakings that are part of the group and are domiciled in a Member State, 3. other group entities, and 4. subsidiary undertakings not domiciled in a Member State, subject to the provisions of sections 167 to 171. The resolution entities and the resolution groups are to be determined for each group in the group resolution plan.
(3) The group resolution plan 1. sets out the resolution actions to be taken, under the scenarios referred to in section 40(2), point 2, in respect of resolution entities, and the effects of those resolution actions on the EU parent undertaking, on the subsidiary undertaking, and on other group entities; where a group referred to in subsection (2) comprises more than one resolution group, resolution actions are set out for the resolution entities of each resolution group, including the effects of those actions on other undertakings of the group that belong to the same resolution group and on other resolution groups; 2. analyses the extent to which, for resolution entities established in a Member State, the resolution tools can be applied and the resolution powers exercised in a coordinated manner, including, among other things, by facilitating the acquisition by a third party of the following: a) the group as a whole, b) certain discrete lines of business or activities carried out by several undertakings of the group, c) certain undertakings of the group, or d) certain resolution groups; 3. identifies any impediments to coordinated resolution; 4. where a group includes undertakings domiciled in third countries, specifies, on the one hand, appropriate procedures for cooperation and coordination with the respective competent authorities of the third countries concerned, and, on the other hand, identifies the effects of a resolution in the Union; 5. sets out measures, including a legal and economic separation of specific functions or business lines, that are necessary to facilitate resolution at group level where the resolution conditions are satisfied; 6. describes all additional measures that the resolution authority intends to take in respect of the undertakings within each resolution group; 7. should not assume any of the following: a) the provision of extraordinary public financial support beyond the provision of funds from the restructuring fund under section 1 of the Restructuring Fund Act, b) the provision of emergency liquidity assistance by a central bank, or c) the provision of liquidity assistance by a central bank on the basis of non-standard collateralisation, maturities or interest rates; 8. subject to the provision in point 7, sets out particulars of the possible financing of the various group resolution actions, and, insofar as the use of financing arrangements is necessary, sets out principles for allocating financing responsibility between financing arrangements in several Member States; those principles should be based on fair and balanced criteria and should, in particular, take account of the provisions of section 12i of the Restructuring Fund Act and of the effects on financial stability in all the Member States concerned; 9. addresses in detail the assessment of resolvability under section 58, and 10. observes regulatory technical standards adopted under Article 12(6) of Directive 2014/59/EU. The content of the group resolution plan should follow the requirements of section 40(3).
(4) After it is first drawn up, the group resolution plan is reviewed, and updated where necessary, at least once in each calendar year, and following changes to the legal or organisational structure, the business activities, or the financial position of the group, including the financial position of each undertaking of the group, that could materially affect the group resolution plan or make its amendment necessary. Subsection (1), second and third sentences, applies correspondingly.
(5) The EU parent undertaking provides the resolution authority with comprehensive assistance and transmits to it the corresponding information and analyses. This comprehensive assistance, information and analyses concern the EU parent undertaking and, insofar as necessary, every subordinate undertaking of the group and other members of the group. Section 42 applies correspondingly.
(6) Provided that confidentiality is maintained in accordance with sections 5 to 10 and 21, the resolution authority transmits the information and analyses it receives under subsection (5) to 1. the European Banking Authority, 2. the resolution authorities responsible for subsidiary undertakings, 3. the resolution authorities of the host Member States in which significant branches are located, insofar as the interests of the respective significant branch are affected, 4. the competent authorities referred to in Articles 115 and 116 of Directive 2013/36/EU, and 5. the resolution authorities of the Member States in which group entities are located. The information and analyses transmitted under the first sentence, points 2, 3 and 4, to the authorities referred to there comprise, at a minimum, the information and analyses concerning the interests of the subsidiary undertaking or the significant branch. All information and analyses relevant to its role in the group resolution planning process must be transmitted to the European Banking Authority. Where information concerns third-country undertakings, the resolution authority is not obliged to transmit that information without the consent of the competent supervisory or resolution authority of the third country concerned.
(7) Third parties are obliged to cooperate correspondingly to section 45.
(8) Section 40(5) applies correspondingly, whereby, in the corresponding application of section 40(5), second sentence, disclosure is made to the EU parent undertaking.