Reduction and removal of impediments to resolvability at groups

(1) Together with the resolution authorities responsible for the subsidiary undertakings, and after consulting the supervisory college and the resolution authorities of the Member States in which significant branches are located, insofar as the impediment to resolvability is relevant to the significant branch, the authority responsible for group resolution reviews the assessment of the resolvability of groups under section 58 within the resolution college, and takes all appropriate steps to reach a joint decision on the application of the measures determined under section 59(4) to all resolution entities and their subsidiary undertakings that are undertakings within the meaning of section 1 and are part of the group.
(2) Where the resolution authority is responsible for group resolution under section 155, it prepares a report in cooperation with the consolidating supervisory authority and the European Banking Authority, in accordance with Article 25(1) of Regulation (EU) No 1093/2010 and after consulting the supervisory authorities concerned. It transmits that report to 1. the EU parent undertaking, 2. the resolution authorities responsible for the subsidiary undertakings, who forward it to the subsidiary undertakings for which they are responsible, and 3. the resolution authorities of the Member States in which significant branches are located.
(3) The report under subsection (2), first sentence, 1. analyses any material impediments to the effective application of resolution tools and to the exercise of resolution powers in respect of the group, and, in cases where the group consists of more than one resolution group, also in respect of the resolution groups, and 2. sets out recommendations for appropriate measures that, in the view of the authority responsible for group resolution, are suitable and necessary to remove the impediments to resolvability referred to in point 1. The effects on the group's business model must be taken into account in each case. Where an impediment to the resolvability of the group is attributable to a situation of a group undertaking referred to in section 59(2), second sentence, the authority responsible for group resolution communicates its assessment of that impediment to the EU parent undertaking, after coordinating with the resolution authority responsible for the resolution entity and the resolution authorities responsible for its subsidiary undertakings.
(4) Within four months of receiving the report under subsection (2), the EU parent undertaking may submit comments and propose to the resolution authority, as the authority responsible for group resolution, alternative measures capable of removing or reducing the impediments to resolvability identified in the report. Where the impediments to resolvability identified in the report are attributable to situations within the meaning of section 59(2), second sentence, the EU parent undertaking proposes to the authority responsible for group resolution, within two weeks of receiving a notification under subsection (3), third sentence, possible measures and a timetable for their implementation, to ensure that the group undertaking complies with the requirements referred to in section 49e or section 49f, expressed as a total risk exposure amount calculated under Article 92(3) of Regulation (EU) No 575/2013, and, where applicable, the combined capital buffer requirement and the requirements referred to in sections 49e and 49f, expressed as a percentage of the total exposure measure under Articles 429 and 429a of Regulation (EU) No 575/2013. The timetable for implementing the measures proposed under the second sentence has regard to the reasons for the material impediment to resolvability. The resolution authority assesses, after consulting the competent authority, whether those measures are suitable to effectively reduce or remove the material impediment to resolvability. The authority responsible for group resolution informs the consolidating supervisory authority, the European Banking Authority, the resolution authorities responsible for the subsidiary undertakings, and the resolution authorities of the Member States in which significant branches are located, insofar as the proposed measures are relevant to the significant branch, of the measures proposed by the EU parent undertaking.
(5) Where the resolution authority is the authority responsible for group resolution, it endeavours, after consulting the other supervisory authorities and the resolution authorities of the Member States and third countries in which significant branches are located, to reach a joint decision with the resolution authorities responsible for the subsidiary undertakings regarding 1. the identification of material impediments to resolvability and, where necessary, 2. the assessment of the measures proposed by the EU parent undertaking, and of the measures required by the authorities, to remove or reduce the material impediments to resolvability that exist. In taking the decision, the possible effects of such measures in the Member States in which the group operates should be taken into account.
(6) The joint decision under subsection (5) is taken within four months of the submission of any comments by the EU parent undertaking. Where the EU parent undertaking has not submitted comments, the joint decision is taken within one month of the expiry of the four-month period referred to in subsection (4), first sentence. Joint decisions relating to impediments to resolvability attributable to one of the situations described in section 59(2), second sentence, are taken within two weeks of the submission of any comments by the EU parent undertaking under subsection (4). Joint decisions must be reasoned and recorded in a document that the authority responsible for group resolution transmits to the EU parent undertaking. The resolution authority may request the assistance of the European Banking Authority under Article 31(c) of Regulation (EU) No 1093/2010 in reaching an agreement.
(7) Where no joint decision is reached within the relevant period referred to in subsection (6), the resolution authority, as the authority responsible for group resolution, decides alone on the measures to be taken at group level under section 59(4). The decision must be fully reasoned and must have regard to the views and reservations of other resolution authorities. The authority responsible for group resolution communicates the decision to the EU parent undertaking. Where a resolution authority has, before the end of the relevant period referred to in subsection (6), referred a matter referred to in section 59(6), points 7, 8 or 10, to the European Banking Authority under Article 19 of Regulation (EU) No 1093/2010, the authority responsible for group resolution defers its decision pending a possible decision of the European Banking Authority under Article 19(3) of that Regulation, and follows the decision of the European Banking Authority in its subsequent decision. The relevant period referred to in subsection (6) is to be regarded as a mediation phase within the meaning of Regulation (EU) No 1093/2010. After the end of the relevant period referred to in subsection (6), or once a joint decision has been reached, the matter may no longer be referred to the European Banking Authority. Where the European Banking Authority does not take a decision within one month, the decision of the resolution authority responsible for group resolution applies.
(8) Where no joint decision is reached within the relevant period referred to in subsection (6), the resolution authority, as the authority responsible for the resolution entity concerned, decides itself on the appropriate measures to be taken at the level of the resolution group under section 59(4). The decision under the first sentence must be fully reasoned and must have regard to the views and reservations of the resolution authorities of other undertakings of the same resolution group and of the authority responsible for group resolution. The resolution authority concerned transmits the decision to the resolution entity. Where a resolution authority has, before the end of the relevant period referred to in subsection (6), referred a matter referred to in section 59(6), points 7, 8 and 10, to the European Banking Authority under Article 19 of Regulation (EU) No 1093/2010, the resolution authority responsible for the resolution entity defers its decision pending a possible decision of the European Banking Authority under Article 19(3) of that Regulation, and follows the decision of the European Banking Authority in its subsequent decision. The relevant period referred to in subsection (6) is to be regarded as a mediation phase within the meaning of Regulation (EU) No 1093/2010. After the end of the relevant period referred to in subsection (6), or once a joint decision has been reached, the matter may no longer be referred to the European Banking Authority. Where the European Banking Authority does not take a decision within one month, the decision of the resolution authority responsible for the resolution entity applies.
(9) Where no joint decision is reached, the resolution authority, as the resolution authority responsible for the subsidiary undertakings that are not resolution entities, decides itself on the appropriate measures to be taken by the subsidiary undertakings at individual-undertaking level under section 59(4). The decision must be fully reasoned and must have regard to the views and reservations of the other resolution authorities. The decision is transmitted to the subsidiary undertaking concerned and to the resolution entity of the same resolution group, to the resolution authority of the resolution entity, and, where it is not the same authority, to the authority responsible for group resolution. Where a resolution authority has, before the end of the relevant period referred to in subsection (6), referred a matter referred to in section 59(6), points 7, 8 and 10, to the European Banking Authority under Article 19 of Regulation (EU) No 1093/2010, the resolution authority responsible for the subsidiary undertaking defers its decision pending a possible decision of the European Banking Authority under Article 19(3) of that Regulation, and follows the decision of the European Banking Authority in its subsequent decision. The relevant period referred to in subsection (6) is to be regarded as a mediation phase within the meaning of Regulation (EU) No 1093/2010. After the end of the relevant period referred to in subsection (6), or once a joint decision has been reached, the matter may no longer be referred to the European Banking Authority. Where the European Banking Authority does not take a decision within one month, the decision of the resolution authority responsible for the subsidiary undertaking applies.