Assessment of the resolvability of groups

(1) Where the resolution authority is responsible for group resolution under section 155, it assesses the resolvability of the group concerned. The resolution authority carries out the assessment within a resolution college, after consultation with the consolidating supervisory authority, the resolution authorities responsible for the subsidiary undertakings, and the resolution authorities of the Member States and third countries in which significant branches are located, insofar as the interests of those significant branches are affected.
(2) A group is resolvable where, in the view of the resolution authorities, it is feasible and credible either to wind up the group undertakings' assets under normal insolvency proceedings, or to resolve them by applying resolution tools and exercising resolution powers, in a manner that 1. avoids, as far as possible, any significant adverse effect on the financial systems of the Member States in which group undertakings or significant branches are located, other Member States, or the Union as a whole, in particular in circumstances of broader financial instability or system-wide events, 2. ensures the continuity, including the possibility of orderly resolution, of critical functions, where the business of the relevant group undertaking includes such critical functions, and 3. is consistent with the conditions of section 46(3), first sentence, point 7.
(2a) In cases where a group consists of more than one resolution group, the authority referred to in subsection (1), first sentence, assesses the resolvability of each resolution group. That assessment is carried out in addition to the assessment of the resolvability of the group as a whole, and takes place within the procedures under sections 46 to 48.
(3) For the purposes of assessing resolvability under subsections (1) and (2), the resolution authorities examine at least the matters set out in Section C of the Annex to Directive 2014/59/EU. The resolution authority also has regard to the regulatory technical standards adopted under Article 15(4) of Directive 2014/59/EU.
(4) The assessment of resolvability under this provision 1. is carried out at the same time as, and for the purposes of, preparing and updating the resolution plan under section 46, 2. is made within the decision-making process under section 47, and 3. is taken into account by the resolution colleges under section 156.
(5) Where the resolution authority reaches a negative assessment in the course of its participation in assessing a group's resolvability, it informs the European Banking Authority.
(6) Section 47(2) applies correspondingly.